Eastern District of Virginia
Press releases recorded for this federal judicial district.
Stafford County Man Sentenced to 30 Years for Producing Child PornographyRead the Press Release
RICHMOND, Va. – Michael P. Johnson, 49, of Stafford County, was sentenced today to 360 months in prison for production of child pornography. The court also ordered that Johnson remain on supervised release for life, following his release from incarceration.
“For approximately three years, Michael P. Johnson repeatedly raped and sodomized a child and produced hundreds of images and videos memorializing the abuse,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “The physical, emotional, and psychological harm a child suffers from sexual abuse and sexual exploitation through molestation and the production of child pornography is well known. This case is no different. The harm the victim has suffered at the hands of Johnson will significantly impact the victim for the rest of their life. The sentence Johnson earned today provides just punishment for this egregious offense and addresses the substantial needs of deterrence, protection of the community, and promotion of respect for the law.”
”By his own admission, Mr. Johnson violated a young child, stripping them of their innocence and forever tarnishing their childhood,” said Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office. “A tremendous amount of time and energy was invested by investigators in this case, sorting through massive amounts of evidence; demonstrating the FBI's commitment to expose and hold accountable those who prey on our youth, and offer justice for the victims left in their wake.”
Johnson pleaded guilty on July 8, 2015. According to court documents and evidence presented at sentencing, Johnson was identified after the FBI learned that a computer located within his residence was using a website to upload and download files containing child pornography. Based on this information, the FBI obtained and executed a search warrant for Johnson’s residence on April 22, 2015. During the search, Johnson agreed to be interviewed and admitted that he would use the Internet to search for, download, and distribute child pornography. Johnson also admitted sexually abusing a four- or five-year-old female for approximately three years and to photographing and recording the abuse.
At the conclusion of the search, the FBI seized numerous pieces of computer equipment. A forensic examination of the seized items revealed the video to which Johnson pled guilty, as well as an additional 260 images and 102 videos of the victim engaged in sexually explicit conduct. In addition, the FBI recovered more than 146,000 images and 22,000 videos of child pornography from Johnson’s computers.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Virginia Attorney General; and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by U.S. District Judge M. Hannah Lauck. Special Assistant U.S. Attorney Thomas K. Johnstone IV 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-84.
School Bus Driver Pleads Guilty to Producing Child PornographyRead the Press Release
NORFOLK, Va. – Larry Carl Homan, 71, of Norfolk, pleaded guilty today to charges of production of child pornography.
According to a statement of facts filed with the plea agreement, in May 2015, a concerned parent complained to her daughter’s school that Homan, a school bus driver in Chesapeake, had acted inappropriately towards her daughter. A review of the surveillance footage from Homan’s school bus resulted in Homan being suspended without pay. The Chesapeake Police Department (CPD) became involved and executed a search warrant at Homan’s residence in Norfolk. A number of electronic devices were seized from Homan’s apartment, including a flash drive that was hidden inside a clock on Homan’s wall. The CPD analyzed the electronic devices and found that Homan had been producing child pornography inside his apartment in Norfolk.
Homan was indicted by a federal grand jury on Oct. 5, 2015, and faces a mandatory minimum penalty of 15 years in prison and a maximum penalty of 30 years in prison when sentenced on March 21, 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; Michael Goldsmith, Chief of Norfolk Police; and Col. K.L. Wright, Chief of Chesapeake Police, made the announcement after the plea was accepted by U.S. Magistrate Judge Lawrence R. Leonard. 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. 2:15-cr-129.
Winchester Woman Pleads Guilty to Embezzling $1 Million from Credit UnionRead the Press Release
ALEXANDRIA, Va. – Donna L. Jennings, 44, of Winchester, pleaded guilty today to charges relating to embezzling over $1 million from Winchester Community Federal Credit Union.
In a statement of facts filed with the plea agreement, Jennings admitted to stealing $1,059,767.52 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.
Jennings faces a maximum penalty of 30 years in prison when sentenced on April 8, 2015. 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 Liam O’Grady. 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. 1:15-cr-358.
Virginia Beach Man Charged with Distribution of Heroin Resulting in DeathRead the Press Release
NORFOLK, Va. – Gregory Hatt, 28, of Virginia Beach, was charged today through a superseding indictment with conspiracy to distribute heroin, distribution of heroin resulting in death, distribution of heroin, possession with intent to distribute heroin and cocaine, and the possession of a firearm in furtherance of a drug trafficking crime.
According to court documents, Hatt allegedly sold heroin, cocaine, and other narcotics to local residents out of a house he rented in Virginia Beach from December 2014 through July 2015. On Dec. 26, 2014, Hatt distributed heroin at his house to Monica Beaudry, a 23-year-old Virginia Beach woman, who later overdosed. Hatt’s roommate implored him to call 911, but Hatt refused. After some delay, Hatt drove her to Chesapeake Regional Medical Center where she was pronounced dead. Hatt was aware of Beaudry’s death, but continued to distribute heroin from his residence and from other Virginia Beach locations through July 2015. On July 24, 2015, law enforcement agents with NCIS and Virginia Beach Police Department executed a search warrant on Hatt’s residence. The agents found over 36 grams of heroin, 17 grams of cocaine, various drug paraphernalia, and multiple firearms including a fully loaded sawed-off shotgun.
Hatt faces 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, made the announcement after the grand jury returned the indictment. The case is being investigated by NCIS and the Virginia Beach Police Department. Special Assistant U.S. Attorneys Alyssa Nichol and John Butler 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. 2:15-cr-140.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Former U.S. State Department Employee Indicted in $2 Million Government Contract ConspiracyRead the Press Release
ALEXANDRIA, Va. – Kenneth Apple, 65, of Beaverton, Oregon, was indicted by a federal grand jury yesterday on charges related to his role in awarding $2 million in micro-dairy contracts from the U.S. government for use in Iraq.
According to the indictment, Apple, a former employee with the U.S. Department of State, helped to steer the sole-sourcing of $2 million in micro-dairy contracts to a company in which his son, Jonathan Apple, owned a 50 percent interest. However, Jonathan Apple and his partner had no technical experience in the industry. Kenneth Apple conspired to use his official position to pass on non-public information to his son in order to fraudulently award and administer government contracts. The conspirators further provided false information to, and concealed material details from the U.S. government.
According to the indictment, Kenneth Apple provided templates and technical specifications used in the proposal submitted by Jonathan Apple and his partner to the U.S. government. In addition, Kenneth Apple caused false and misleading statements to be made to the U.S. government regarding his experience, ownership interest, and the status of the projects. For example, Kenneth Apple directed a conspirator to keep Jonathan Apple’s name off the company’s website and any ownership documents. When federal law enforcement agents confronted Kenneth Apple about the scheme, he made false statements, including that he could not recall the owner of the company that won the micro-dairy contracts and that he did not receive any money from the contracts.
Kenneth Apple faces a maximum penalty of 20 years in prison if convicted of wire fraud or obstruction of an official proceeding, and five years in prison if convicted of conspiracy or false statements. 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; Frank Robey, Director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU); and Robert E. Craig, Special Agent in Charge for the Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office, made the announcement. Assistant U.S. Attorneys Uzo Asonye and Katherine Wong 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-363.
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.
Final Defendant in Massive Heroin Trafficking Group SentencedRead the Press Release
NORFOLK, Va. – Jerald Outten, 26, of Portsmouth, was sentenced today to 264 months in prison for his involvement in a heroin trafficking operation that was responsible for the distribution of between 30 and 90 kilograms of heroin with an estimated street value between $1.5 and $4.5 million dollars.
“The excellent coordination between federal, state, and local law enforcement agencies was critical in dismantling this group and so many others like them in 2015,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “This case, and the resources and collaborative efforts used to investigate and prosecute it, is a prime example of the level of commitment and determination we have to combat the heroin crisis in the Commonwealth of Virginia.”
“This case demonstrates the severity and degree to which sophisticated drug operations try to profit off of the addiction, despair, and pain of others and threaten the safety of the communities where they operate,” said Mark R. Herring, Attorney General of Virginia. “This outcome demonstrates the power of collaboration and our combined resolve to fight the heroin epidemic that has affected so many people in our Commonwealth and throughout the country.”
Outten, along with six co-conspirators, were collectively sentenced to over 136 years in prison for their crimes. According to court documents, in the early morning hours of July 14, 2015, search warrants were executed simultaneously on 14 properties in Portsmouth, Chesapeake, and Suffolk, by more than 250 law enforcement officials from three states and the District of Columbia. When Jerald Outten was arrested, police recovered a loaded handgun with a bullet in the chamber, $1,700 in cash, 135 grams of raw heroin, marijuana, and a cutting agent used to increase the volume and profitability of heroin.
According to court documents, Jerald Outten, brother of ring-leader Alonzo Outten, personally managed the wholesale distribution of over 24 kilograms of heroin during the course of the conspiracy. He was often observed with a firearm during drug transactions. Jerald and Alonzo were responsible for supplying drugs to two violent Bloods gangs, Gorilla Mafira Piru and Imperial Gangsta Bloods (IGB), both of which have been dismantled, prosecuted, and sentenced. The IGB in particular was responsible for a number of violent acts in Portsmouth in 2014, including at least two shooting incidents with a rival drug trafficking organization that left homes of innocent citizens riddled with bullets. The IGB’s leader, Chris Smith, aka Killa, was sentenced to life in prison plus five years on Oct. 30, 2015. Gorilla Mafia Piru’s leader, Theodore Vann, aka Flatline, was sentenced to 16 years in prison Nov. 16, 2015.
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 sentencing by U.S. District Judge Mark S. Davis.
This case was investigated by the FBI’s Norfolk Field Office and the Chesapeake Police Department with the assistance of the Portsmouth Police Department, the Virginia State Police, and NCIS. Special Assistant U.S. Attorney John F. Butler, and Assistant U.S. Attorneys Joseph E. DePadilla and Andrew C. 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-80 (Outten, et. al.); 2:15-cr-93 (Jackson); 2:15cr7 (Smith); and 2:15cr60 (Vann).
Name
Age, Hometown
Charges
Status
Alonzo Outten
35, Portsmouth
Conspiracy to Manufacture, Distribute, and Possess with Intent to Distribute Over One Kilogram of Heroin
Pleaded guilty July 30, 2015. Sentenced to 30 years on Nov. 4, 2015.
Jerald Outten
26, Portsmouth
Conspiracy to Manufacture, Distribute, and Possess with Intent to Distribute Over One Kilogram of Heroin
Pleaded guilty August 10, 2015. Sentenced to 22 years today.
Sherita Nicks
41, Brooklyn, New York
Conspiracy to Manufacture, Distribute, and Possess with Intent to Distribute Over One Hundred Grams of Heroin
Pleaded guilty Aug. 10, 2015. Sentenced to 18 years on Nov. 17, 2015.
Deyonta Hinton
31, Portsmouth
Conspiracy to Manufacture, Distribute, and Possess with Intent to Distribute Over One Kilogram of Heroin
Pleaded guilty Sept. 4, 2015. Sentenced to 22 years on Dec. 10, 2015.
Jermaine Jones
38, Portsmouth
Conspiracy to Manufacture, Distribute, and Possess with Intent to Distribute Over One Kilogram of Heroin
Pleaded guilty July 29, 2015. Sentenced to 22 years on Oct. 29, 2015.
Garnett Brown
34, Portsmouth
Conspiracy to Manufacture, Distribute, and Possess with Intent to Distribute Over One Kilogram of Heroin
Pleaded guilty July 29, 2015. Sentenced to 14 years on Nov. 10, 2015.
Latina Jackson
27, Portsmouth
Maintaining a Drug-Involved Premises
Pleaded guilty on July 27, 2015. Sentenced to 70 months on Nov. 5, 2015.
Troy Gay
24, Portsmouth
Conspiracy to Manufacture, Distribute, and Possess with Intent to Distribute Over One Hundred Grams of Heroin
Pleaded guilty on Aug. 6, 2015. Sentenced to 68 months on Nov. 5, 2015.
Virginia Beach Man Sentenced to 126 Months for Drug CrimesRead the Press Release
NORFOLK, Va. – Alonzo Diangelo Bell, 32, of Virginia Beach, was sentenced today to 126 months in prison for manufacturing marijuana and maintaining drug-involved premises.
Bell pleaded guilty on Sept. 17, 2015. According to court documents, in February of 2015, Virginia Beach Police conducted surveillance of a storage facility located at the corner of Maxey Drive and Virginia Beach Boulevard after an officer who had been patrolling the area detected a strong odor of marijuana. Bell who had been observed exiting one of the units of the storage facility was stopped for speeding. During the stop, officers detected the odor of marijuana and searched Bell’s vehicle, but no contraband was found. Later, when the police contacted the manager of the storage facility to inquire about Bell, they were informed that several complaints had been made about the smell of marijuana coming from the units that Bell was renting. The manager consented to a search of units adjacent to the units Bell was renting. When police determined that the marijuana odor was coming from the two storage units being rented by Bell, search warrants were executed. In one unit, the police found approximately 1883 grams of marijuana. In the second unit, police discovered a marijuana grow operation consisting of approximately 30 mature plants, a carbon dioxide generator and grow lights. The total weight of the marijuana seized was approximately 4.665 kilograms. Latent fingerprints belonging to Bell were found on various items in both units.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C. Field Office, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorney Darryl Mitchell 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-99.
Black Hat Bandit Gunman Sentenced to 32 Years in PrisonRead the Press Release
ALEXANDRIA, Va. – Thomas Anthony George, 65, of Washington, D.C., was sentenced today to 384 months in prison for two counts of using a firearm during the commission of armed bank robberies. George was also ordered to pay full restitution in the amount of $182,104.48.
“Thomas George has been robbing banks for most of his adult life,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “I want to thank our prosecutors and investigative partners for their efforts on this case and for bringing this violent serial bank robber to justice.”
George pleaded guilty on Sept. 24, 2015. According to court documents, in approximately January 2015, George entered a conspiracy to commit armed bank robberies within the Eastern District of Virginia, and elsewhere. Over the course of the ensuing two months, George and his co-conspirators, who were known as the Black Hat Bandits, robbed nine banks, including six banks in the Eastern District of Virginia, two banks in the District of Maryland, and one bank in the District of Columbia. In each of these robberies, George brandished a firearm at bank customers or employees of the bank. In total, George and his co-conspirators stole approximately $182,104 during the nine bank robberies.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Channing D. Phillips, Acting U.S. Attorney for the District of Columbia; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; and Cathy Lanier, Chief of the Metropolitan Police Department, made the announcement after sentencing by U.S. District Judge James C. Cacheris. Assistant U.S. Attorneys Tobias D. Tobler and Jonathan L. Fahey prosecuted the case.
The investigation was worked jointly by the FBI's Washington and Baltimore Field Offices, Anne Arundel County Police Department, Charles County Sheriff’s Office, Fairfax County Police Department, Falls Church Police Department, Loudoun County Police Department, the Metropolitan Police Department, Vienna Police Department and Virginia State Police. Additional assistance was provided by Arlington County Police Department, Maryland State Police and the Montgomery County 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. 1:15-CR-87.
Senate Confirms U.S. Attorney for the Eastern District of VirginiaRead the Press Release
ALEXANDRIA, Va. – Dana J. Boente was unanimously confirmed by the U.S. Senate yesterday as the U.S. Attorney for the Eastern District of Virginia (EDVA).
“I am honored by the confidence of the President, and Senators Mark Warner and Tim Kaine,” said Boente. “It is a privilege to serve the citizens of the Commonwealth of Virginia and United States.”
Boente, who has served as Acting U.S. Attorney for EDVA since September 2013, will serve a four year term as the chief law enforcement officer in the district, which has offices in Alexandria, Richmond, Norfolk and Newport News. From its early days and throughout its history, EDVA has been a national leader in investigating and aggressively prosecuting terrorism and espionage cases, in addition to battling economic espionage, piracy, theft of intellectual property, trafficking of weapons and narcotics, child exploitation, gangs and international criminal organizations, cybercrime, and public corruption.
Boente is a 31-year veteran of the Department of Justice (DOJ), joining DOJ in 1984 at the conclusion of a clerkship with the Honorable J. Waldo Ackerman of the U.S. District Court for the Central District of Illinois. From 1984 to 1999, Boente was a Trial Attorney with DOJ’s Tax Division, and in January 2000, Boente became an Assistant U.S. Attorney in the Fraud Unit of EDVA. In August 2005, Boente was detailed back to the Tax Division to serve as the Principal Deputy Assistant Attorney General, and returned to EDVA in May 2007, when he was selected as the First Assistant U.S. Attorney. In December 2012, Boente was selected to serve as the Acting U.S. Attorney for the Eastern District of Louisiana, and later returned to EDVA in September 2013. Boente was nominated by President Obama as U.S. Attorney for EDVA on Oct. 8, 2015.
Boente, of Carlinville, Illinois, received his J.D. magna cum laude in 1982 from St. Louis University School of Law, and his M.B.A in 1977 and B.S.B.A. cum laude in 1976, both from St. Louis University.
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.
Former Newport News School District Maintenance Worker Sentenced for Receipt of Child PornographyRead the Press Release
NEWPORT NEWS, Va. – Timothy Paul Morgan, 51, of Newport News, was sentenced today to 75 months in prison and five years of supervised release for receipt of child pornography.
Morgan pleaded guilty on Aug. 17, 2015. According to court documents, Morgan was identified by law enforcement investigating the trading of child pornography over peer-to-peer networks.
Beginning in August 2014, law enforcement download 13 complete files of suspected child pornography from an IP address registered to Morgan. A search warrant was executed at Morgan’s residence on Jan. 22, 2015, and his computer and external hard drive were recovered. Morgan admitted he had only one computer, he was the only person with access to it, and that he had downloaded child pornography using a peer-to-peer file sharing program found on the computer. A forensic exam of the computer and external hard drive revealed a total of 118 images and 55 videos depicting child pornography. The files dated back to 2004 and included images of young female minors engaging in sexual acts with an adult male.
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 Robert G. Doumar. Assistant U.S. Attorney Kaitlin C. Gratton 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. 4:15cr17.
Illinois Man Pleads Guilty to Defrauding Foreign Investor of $500,000Read the Press Release
ALEXANDRIA, Va. – Thomas A. Kopec, 48, of New Lenox, Illinois, pleaded guilty today to wire fraud for cheating a Panamanian investor out of $500,000.
In a statement of facts filed with the plea agreement, Kopec admitted to soliciting $500,000 from the victim for a purported investment vehicle for purchasing securities and acquiring a bank. Kopec took steps in pursuing the purported investment in order to lull the victim into thinking the investment was proceeding as planned. In truth, Kopec misappropriated the moneys and spent them on personal and other expenses at retail establishments including Best Buy, Wal-Mart, and the Apple Store. Kopec started the scheme in Illinois, but relocated it to the Eastern District of Virginia, and caused the issuance of interstate wires originating in the Eastern District of Virginia in order to obtain and misappropriate the victim’s money.
Kopec was indicted by a federal grand jury on June 5, 2014. The indictment was placed under seal until Kopec’s arrest earlier this year. Kopec faces a maximum penalty of 20 years in prison when sentenced on March 4, 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 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 Kosta S. Stojilkovic 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. 1:14-cr-204.
Fairfax Station Man Sentenced to 12 Years for Heroin and Oxycodone CrimesRead the Press Release
ALEXANDRIA, Va. – Michael Ryan Martin, 32, of Fairfax Station, was sentenced today to 144 months in prison, followed by three years of supervised release, for conspiracy to distribute heroin and oxycodone.
According to court documents, from approximately Aug. 14, 2014, until June 1, 2015, Martin illegally distributed oxycodone tablets and utilized the proceeds from these sales to purchase heroin, a portion of which he sold to other individuals. On Dec. 3, 2014, Martin distributed heroin to Christopher Ritchie, a 30-year old resident of Aldie. Ritchie injected himself with a portion of the heroin that Martin provided and subsequently died the same day. The cause of Ritchie’s death was later determined to be heroin poisoning.
Martin pleaded guilty on Sept. 17, 2015. Today the court determined Martin significantly impeded law enforcement officials’ investigation of Ritchie’s death by providing false statements to detectives from the Loudoun County Sherriff’s Office. The court also ordered Martin to forfeit $71,840, which represented the illegal proceeds that Martin obtained from the offense.
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 Michael L. Chapman, Loudoun County Sheriff; and Karl C. Colder, Special Agent in Charge of the DEA’s Washington Field Division, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga.
Special Assistant U.S. Attorneys Neal Christiansen and Joshua Champagne, and Assistant U.S. Attorney Kosta 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-257.
Former Head of Offshore Brokerage Pleads Guilty to Conspiracy to Commit International Stock Fraud and Money Laundering ScamsRead the Press Release
ALEXANDRIA, Va. – Harold Bailey Gallison II, 58, of Valley Center, California, pleaded guilty today to two counts of conspiracy to commit wire fraud and one count of conspiracy to commit international money laundering in connection with an international “pump and dump” scheme involving stocks traded on the over-the-counter (OTC) market.
In a statement of facts filed with the plea agreement, Gallison admitted that he conspired to artificially “pump” or inflate the trading volume and price of the shares of Warrior Girl Corp., quoted on the OTC market under the ticker symbol WRGL, and Everock Inc., quoted on the OTC market under the ticker symbol EVRN, by touting business activities and deceptive revenue forecasts and by engaging in coordinated trading activity to create the appearance of increasing market demand. Gallison admitted that he and others then “dumped” or sold the shares at the inflated prices and laundered proceeds through bank accounts in the United States and overseas. Gallison further admitted that he facilitated the schemes through an offshore brokerage and money laundering platform that went by various names, including Sandias Azucaradas, Moneyline Brokers and Trinity Asset Services (collectively Moneyline). Through Moneyline, Gallison created nominee accounts in the names of shell companies to conceal both the true source and ownership of the securities and the flow of funds. In addition, Gallison pleaded guilty to one count of conspiring to launder the proceeds of a number of securities fraud schemes, including Warrior Girl and Everock, totaling more than $25 million.
Gallison was charged in an indictment unsealed on July 14, 2015, and will be sentenced on March 18, 2016. Several of Gallison’s co-defendants are scheduled to proceed to trial on Jan. 25, 2016, and are presumed innocent until and unless proven guilty.
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; 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 Anthony J Trenga.
Assistant U.S. Attorney Kosta Stojilkovic, Senior Trial Attorney N. Nathan Dimock and Trial Attorney Michael O’Neill of the Criminal Division’s Fraud Section are prosecuting the case. Assistant U.S. Attorneys James P. Gillis and G. Zachary Terwilliger assisted in the prosecution. The FBI’s Washington Field Office is investigating the case, while the Securities and Exchange Commission, the Financial Industry Regulatory Authority and the Criminal Division’s Office of International Affairs have also 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. 1:15-cr-178.
Former Head of Offshore Brokerage Pleads Guilty to Conspiracy to Commit International Stock Fraud and Money Laundering ScamsRead the Press Release
A California man pleaded guilty today to two counts of conspiracy to commit wire fraud and one count of conspiracy to commit international money laundering in connection with an international “pump and dump” scheme involving stocks traded on the over-the-counter (OTC) market.
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 Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office made the announcement.
Harold Bailey Gallison II, 58, of Valley Center, California, was charged in an indictment unsealed on July 14, 2015, along with eight other individuals for their roles in complex, international stock manipulation and money laundering schemes.
In entering his guilty plea, Gallison admitted that he conspired to artificially “pump” or inflate the trading volume and price of the shares of Warrior Girl Corp., quoted on the OTC market under the ticker symbol WRGL, and Everock Inc., quoted on the OTC market under the ticker symbol EVRN, by touting business activities and deceptive revenue forecasts and by engaging in coordinated trading activity to create the appearance of increasing market demand. Gallison admitted that he and others then “dumped” or sold the shares at the inflated prices and laundered proceeds through bank accounts in the United States and overseas. Gallison further admitted that he facilitated the schemes through an offshore brokerage and money laundering platform that went by various names, including Sandias Azucaradas, Moneyline Brokers and Trinity Asset Services (collectively Moneyline). Through Moneyline, Gallison created nominee accounts in the names of shell companies to conceal both the true source and ownership of the securities and the flow of funds. In addition, Gallison pleaded guilty to one count of conspiring to launder the proceeds of a number of securities fraud schemes, including Warrior Girl and Everock, totaling more than $25 million.
Several of Gallison’s co-defendants are scheduled to proceed to trial on Jan. 25, 2016, and are presumed innocent until and unless proven guilty. Gallison is scheduled to be sentenced on March 18, 2016.
The FBI’s Washington Field Office is investigating the case. Senior Trial Attorney N. Nathan Dimock and Trial Attorney Michael O’Neill of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Kosta Stojilkovic of the Eastern District of Virginia are prosecuting the case. Assistant U.S. Attorneys James P. Gillis and G. Zachary Terwilliger of the Eastern District of Virginia assisted in the prosecution. The Securities and Exchange Commission, the Financial Industry Regulatory Authority and the Criminal Division’s Office of International Affairs also provided significant assistance.
Airport Baggage Handler Pleads Guilty to Attempted Mail FraudRead the Press Release
NORFOLK, Va. – Donte Chandler, 24, of Norfolk, pleaded guilty today to charges relating to his theft of personal property from a passenger’s bag while working as a baggage handler at the Norfolk International Airport.
In a statement of facts filed with the plea agreement, while working as a baggage handler at the Norfolk International Airport, Chandler removed an iPad from checked baggage located in a secure area of the airport. The iPad belonged to a passenger who was an active duty service member and had been provided the iPad by the U.S. Navy as part of an intelligence class. After removing the iPad, Chandler called the sailor and told him that he had found and purchased the iPad on Craigslist for $200. The sailor offered Chandler $100 to mail the iPad back to him at his California address. Chandler agreed to the $100 offer and placed the iPad in the mail.
Chandler was indicted by a federal grand jury on Oct. 7, 2015. Chandler faces a maximum penalty of 20 years in prison when sentenced on March 16, 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 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 A. Jackson.
This case was investigated by the FBI’s Norfolk Field Office with the assistance of Transportation Security Administration and U.S. Airways. Assistant U.S. Attorney Joseph E. DePadilla 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. 2:15-cr-128.
Alexandria Man Pleads Guilty to Receipt of Child PornographyRead the Press Release
ALEXANDRIA, Va. – Richard Robinson, 58, of Alexandria, pleaded guilty today to receipt of child pornography.
In a statement of facts filed with the plea agreement, from October 2010 to May 2015, Robinson used a peer-to-peer file sharing program to receive and collect child pornography videos and images, including videos of children as young as five years old being sexually abused. In total, Robinson’s child pornography collection included 326 images and 202 videos of children being sexually exploited, including images and videos depicting sadistic or masochistic conduct.
Robinson faces a mandatory minimum penalty of five years in prison, and a maximum of 20 years in prison, when sentenced on March 4, 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 Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Washington D.C. office, made the announcement after the plea was accepted by U.S. District Judge Leonie M. Brinkema. This case was investigated by HSI with assistance from the Northern Virginia Internet Crimes Against Children Task Force. Assistant U.S. Attorney Kellen S. Dwyer 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. 1:15-CR-329.
Ringleader Sentenced in $7.4 Million Mortgage Fraud Conspiracy that Targeted Northern Virginia Hispanic CommunityRead the Press Release
ALEXANDRIA, Va. – Rosita Vilchez, 41, who was a fugitive in Lima, Peru, until she was extradited to the United States in June 2015, was sentenced today to 66 months in prison for leading a wide-ranging mortgage fraud conspiracy that targeted hundreds of victims in the northern Virginia Hispanic community. Vilchez was also ordered to serve a five-year term of supervised release after her prison term. A forfeiture money judgment of more than $5 million was previously entered against Vilchez.
The mortgage fraud scheme, which operated between August 2005 and August 2007, generated nearly $7.4 million in fraudulent proceeds and caused losses of more than $15 million to lenders, most of which were federally insured.
Vilchez, who was described in court as the kingpin of the conspiracy, pleaded guilty on Aug 18, 2015. According to court documents, Vilchez operated a real estate firm (Vilchez & Associates), a title insurance company (Pino Title), and the branch of a loan brokerage business (Mount Vernon Capital Corporation) in Manassas, Va., all of which she used to carry out the fraud scheme. Vilchez and her co-conspirators submitted fraudulent loan documents that falsified their real estate clients’ income, employment, and assets so that they could obtain loans to buy property through Vilchez & Associates, which received commissions of as much as six percent of the selling price of every home.
The Vilchez conspiracy targeted Hispanic clients who were not proficient in spoken or written English, and the borrowers often were unable to read their loan documents and were unaware of the false statements submitted to the lenders on their behalf. According to court filings, the fraudulent loan applications made it possible for the borrowers to qualify for loans they could not afford to repay. Most of these borrowers later lost their homes to foreclosure. To date, thirteen defendants have been convicted in connection with this conspiracy. Vilchez’s brother, Armando Pino, who was also charged in the conspiracy, is set for trial on Feb. 8, 2016.
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 Matthew Alessandrino, FDIC Assistant Inspector General for Investigations, made the announcement after sentencing by U.S. District Judge Liam O’Grady. Assistant U.S. Attorneys James P. Gillis and Julia K. Martinez 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. 1:12-cr-394.
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Portsmouth Man Sentenced for Role in Heroin Distribution OperationRead the Press Release
NORFOLK, Va. – Eddie K. Mazell, II, 30, of Portsmouth, was sentenced today to 48 months in prison for possession with intent to distribute heroin.
Mazell pleaded guilty on Sept. 4, 2015. According to court documents, a canine unit from the Norfolk Police Department alerted on a Federal Express package for the presence of narcotics in April 2015. The package, which originated from southern California and was addressed to a residence in Portsmouth, was inspected and inside was a bulk size protein powder container with a package of approximately 500 grams of heroin. Norfolk Police Officers working with agents from the DEA coordinated a controlled delivery of the package to the recipient listed on the address label. Shortly after Mazell arrived at the address and took custody of the package he was arrested.
The investigation that followed revealed that over the six months preceding Mazell’s arrest, he made $292,000 in cash deposits to 22 different accounts. The account holders are from Arizona and California; Metamoros, Mexico, and Nogales, Mexico.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; and Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, made the announcement after sentencing by U.S. District Judge Arenda L. Wright Allen.
This case was investigated by the DEA and the Norfolk Police Department. Assistant U.S. Attorney William D. Muhr and Special Assistant U.S. Attorney John F. Butler 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-91.
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U.S. Attorney’s Office Collects over $1.9 Billion for Taxpayers in 2015Read the Press Release
ALEXANDRIA, Va. – Dana J. Boente, U.S. Attorney for the Eastern District of Virginia (EDVA), announced today that EDVA, working together with other U.S. Attorney’s Offices and components of the Department of Justice, collected $1,941,532,490.62 in cases pursued jointly with these offices in Fiscal Year 2015. Of this amount, $1,803,813.635.20 was collected in criminal actions and $137,718,855.42 was collected in civil actions.
In cases pursued exclusively by EDVA, the office collected $129,711,740.67 in criminal and civil actions for U.S. taxpayers in Fiscal Year 2015. Of the total amount, $120,332,441.23 was collected in criminal actions, and $9,379,299.34 was collected in civil actions.
Attorney General Loretta E. Lynch announced today that the Justice Department collected $23.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2015. The more than $23.1 billion in collections in FY 2015 represents more than seven and a half times the approximately $2.93 billion of the Justice Department’s combined appropriations for the 94 U.S. Attorneys’ offices and the main litigating divisions in that same period.
"The Department of Justice is committed to upholding the rule of law, safeguarding taxpayer resources, and protecting the American people from exploitation and abuse,” said Attorney General Loretta Lynch. “The collections we are announcing today demonstrate not only the strength of that commitment, but also the significant return on public investment that our actions deliver. I want to thank the prosecutors and trial attorneys who made this achievement possible, and to reiterate our dedication to this ongoing work.”
“In all of our criminal and civil prosecutions, where appropriate, we strive to collect restitution for the victims of the crime, be that private citizens or the federal government” said U.S. Attorney Boente. “Asset forfeiture, fines, restitution and other means of collections are the Justice Department’s most effective and efficient tools in restoring money to victims of crime and their families.”
In Fiscal Year 2015, EDVA recovered $1.8 billion as part of the settlement in the Credit Suisse case. As part of the plea agreement, Credit Suisse acknowledged that, for decades prior to and through 2009, it operated an illegal cross-border banking business that knowingly and willfully aided and assisted thousands of U.S. clients in opening and maintaining undeclared accounts and concealing their offshore assets and income from the IRS. Credit Suisse further agreed to cooperate in treaty requests for account information, provide detailed information as to other banks that transferred funds into secret accounts or that accepted funds when secret accounts were closed, and to close accounts of account holders who fail to come into compliance with U.S. reporting obligations. Credit Suisse has also agreed to implement programs to ensure its compliance with U.S. laws, including its reporting obligations under the Foreign Account Tax Compliance Act and relevant tax treaties, in all its current and future dealings with U.S. customers. Credit Suisse pleaded guilty on May 19, 2014, and will pay a total of $2.6 billion for their crimes.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, EDVA working with partner agencies and divisions, collected $14,233,390 in asset forfeiture actions in FY 2015. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
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.
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Stony Creek Bank Robber Sentenced to More Than 12 Years in PrisonRead the Press Release
RICHMOND, Va. – Troy A. Clanton, Jr., 24, of Petersburg, was sentenced today to 147 months in prison for the robbery of the Bank of Southside Virginia (BSV) located in Stony Creek. Clanton was ordered by the Court to pay $20,278.29 to the victims of the crime.
Clanton plead guilty on May 18, 2015, to bank robbery and to brandishing a firearm in furtherance of a crime of violence. According to court documents, Clanton and an accomplice robbed the BSV on Dec. 29, 2014, entering the bank wearing a mask and armed with two handguns. Clanton and his co-conspirator stole $22,514 from BSV and fled from the scene. While making his getaway, Clanton dropped multiple personal documents with his name, date of birth, and phone number on the ground outside the bank. On Jan. 7, 2015, Clanton was arrested by police after a vehicular pursuit. At the time of arrest, Clanton was in possession of currency stolen from the BSV and the two handguns used in the robbery.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by U.S. District Judge Robert E. Payne. Assistant U.S. Attorney Erik S. Siebert 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-61.
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Russian Taliban Fighter Sentenced to Life in Prison in Terrorism CaseRead the Press Release
Led Attack on U.S. and Afghan Forces in Afghanistan in 2009Led Attack on U.S. and Afghan Forces in Afghanistan in 2009
Irek Ilgiz Hamidullin, 55, a Russian national and former Russian army tank commander, was sentenced today to life plus 30 years in prison for conspiring to shoot down American helicopters and to kill U.S. and Afghan soldiers, conspiring to use a weapon of mass destruction and several other charges relating to an attack that he led against U.S. and Afghan forces in Afghanistan in November 2009.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Dana J. Boente of the Eastern District of Virginia and Assistant Director in Charge Paul Abbate of the FBI’s Washington, D.C., Field Office made the announcement after sentencing by U.S. District Judge Henry E. Hudson of the Eastern District of Virginia.
“Irek Hamidullin has been sentenced to life in prison for his role in orchestrating and conducting a violent attack on Afghan and U.S. forces in Afghanistan in 2009, and conspiring to kill members of the U.S. military,” said Assistant Attorney General Carlin. “Hamidullin was captured and detained by the U.S. military in Afghanistan and brought to the United States for trial. This case once again demonstrates our resolve to find and bring to justice, using all available tools, those who target U.S. citizens and interests around the world.”
“Few crimes could be more serious than this one,” said U.S. Attorney Boente. “In a well-planned, deliberate, and premeditated attack, Hamidullin led an assault upon an Afghan outpost by a group of insurgents, many of whom he recruited and trained, with the intent to kill Afghan Border Police and responding American forces. Hamidullin is a charismatic proselytizer of the radical views that animate Islamist violence such as that perpetrated by the Taliban and the Haqqani Network upon Americans and Afghans – civilian and military targets alike – especially in 2009 when this attack took place. He not only has the will to do violence himself, but perhaps more dangerously, has the ability and the desire to enlist others to engage in violence. Today’s sentence of life in prison will fulfill our need to protect the public, and will hopefully serve as a deterrent to others contemplating engaging in such actions. I want to commend our trial team and investigating partners for their terrific work in this case.”
“The sentence imposed today on the defendant Hamidullin for masterminding an attack on U.S. military personnel in Afghanistan serves as a reminder of the global reach and determination of the FBI to exact justice through the American legal system,” said Assistant Director in Charge Abbate. “The FBI, together with our partners in the U.S. Attorney’s Office and the U.S. Department of Defense, will continue to relentlessly pursue any person who commits acts of terrorism or supports terrorist organizations targeting American troops, citizens, or interests.”
On Aug. 7, 2015, a federal jury convicted Hamidullin of all 15 counts of the second superseding indictment, which included charges of material support to terrorists, attempted murder of U.S. military personnel, conspiracy to use a weapon of mass destruction and possession of a firearm in connection with a crime of violence. According to court documents and evidence presented at trial, Hamidullin had contact with high-level Taliban and Haqqani Network personnel. On Nov. 28, 2009, Hamidullin led a group of fighters in an attack on a border outpost known as Camp Leyza, located in the Khost Province of Afghanistan, near the border with Pakistan. He had planned the attack for months; received approval from the Taliban and Haqqani Network; recruited other fighters; and acquired weapons for the attack, including IED’s, heavy machine guns and a shoulder-fired rocket, with the intent of shooting down U.S. helicopters responding to the attack.
According to evidence presented at trial, on the night of Nov. 28, 2009, Hamidullin and his fighters initiated their attack with an assault on Camp Leyza. Soon after the attack began, two U.S. Army helicopters responded to Camp Leyza, just as Hamidullin anticipated from his months of planning and reconnaissance. Military witnesses testified at trial that it was a common tactic for insurgents at the time to attack an Afghan position intending to draw in and ambush their real target, the responding U.S. forces.
Hamidullin positioned himself on a nearby hill, away from his fighters, where he had a clear view of the battlefield and could radio orders to his fighters. As the helicopters approached, he ordered his fighters to fire the anti-aircraft weapons he had strategically placed in the area. Both weapons malfunctioned and the helicopters were not fired upon. After the heavy weapons failed to fire, Hamidullin ordered his fighters to pack up their weapons and other gear and return to Pakistan. U.S. military helicopters in the area observed the insurgents “bounding back” in an organized military fashion. Thereafter, a U.S. aircraft spotted the insurgents attempting to set an ambush for the approaching U.S. and Afghan forces. Once the aircraft confirmed that the insurgents were carrying Kalashnikov machine guns and rocket propelled grenade launchers, the U.S. helicopters were given approval to engage the insurgents. U.S. forces ultimately identified and eliminated approximately 20 of Hamidullin’s fighters.
The next morning, as U.S. and Afghan forces were conducting a battle damage assessment, Hamidullin was found hiding on the battlefield. Hamidullin opened fire on the U.S. forces with a Kalashnikov machine gun, but was wounded and captured after a brief firefight. U.S. military personnel testified during the trial that the insurgents were remarkably well-equipped and in addition to the heavy weapons, they were also carrying, for example, GPS devices and $400 military-style watches. During the battle damage assessment, U.S. military personnel found, among other weapons carried by the insurgents, three 50 caliber anti-aircraft machine guns, 82 millimeter recoilless rifles and scores of smaller weapons and grenades. The insurgents were also carrying all the materials necessary to construct three different kinds of improvised explosive devices, which were all of the kind that had been used by insurgents against U.S. forces operating at that time in Khowst Province.
This case was investigated by the FBI’s Washington, D.C., Field Office. The case is being prosecuted by Assistant U.S. Attorney James P. Gillis and former U.S. Attorney Michael Gill of the Eastern District of Virginia and Trial Attorney Jennifer E. Levy of the National Security Division’s Counterterrorism Section.
Russian Taliban Fighter Sentenced to Life in PrisonRead the Press Release
RICHMOND, Va. – Irek Ilgiz Hamidullin, 55, a Russian national and former Russian army tank commander, was sentenced today to life plus 30 years in prison for conspiring to shoot down American helicopters and to kill U.S. and Afghan soldiers, conspiring to use a weapon of mass destruction, and several other charges relating to an attack he led on U.S. and Afghan forces in Afghanistan in November 2009.
“Few crimes could be more serious than this one,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “In a well-planned, deliberate, and premeditated attack, Hamidullin led an assault upon an Afghan outpost by a group of insurgents, many of whom he recruited and trained, with the intent to kill Afghan Border Police and responding American forces. Hamidullin is a charismatic proselytizer of the radical views that animate Islamist violence such as that perpetrated by the Taliban and the Haqqani Network upon Americans and Afghans – civilian and military targets alike – especially in 2009 when this attack took place. He not only has the will to do violence himself, but perhaps more dangerously, has the ability and the desire to enlist others to engage in violence. Today’s sentence of life in prison will fulfill our need to protect the public, and will hopefully serve as a deterrent to others contemplating engaging in such actions. I want to commend our trial team and investigating partners for their terrific work in this case.”
"Irek Hamidullin has been sentenced to life in prison for his role in orchestrating and conducting a violent attack on Afghan and U.S. forces in Afghanistan in 2009, and conspiring to kill members of the U.S. military,” said Assistant Attorney General Carlin. “Hamidullin was captured and detained by the U.S. military in Afghanistan and brought to the United States for trial. This case once again demonstrates our resolve to find and bring to justice, using all available tools, those who target U.S. citizens and interests around the world."
“The sentence imposed today on the defendant Hamidullin for masterminding an attack on U.S. military personnel in Afghanistan serves as a reminder of the global reach and determination of the FBI to exact justice through the American legal system,” said Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office. “The FBI, together with our partners in the U.S. Attorney’s Office and the U.S. Department of Defense, will continue to relentlessly pursue any person who commits acts of terrorism or supports terrorist organizations targeting American troops, citizens, or interests.”
Hamidullin was convicted by a federal jury of all 15 counts of the second superseding indictment on Aug. 7, 2015, which included charges of material support to terrorists, attempted murder of U.S. military personnel, conspiracy to use a weapon of mass destruction and possession of a firearm in connection with a crime of violence. According to court documents and evidence presented at trial, Hamidullin had contact with high-level Taliban and Haqqani Network personnel. On Nov. 28, 2009, Hamidullin led a group of fighters in an attack on a border outpost known as Camp Leyza, located in the Khost Province of Afghanistan, near the border with Pakistan. He had planned the attack for months; received approval from the Taliban and Haqqani Network; recruited other fighters; and acquired weapons for the attack, including IED’s, heavy machine guns, and a shoulder-fired rocket with the intent of shooting down U.S. helicopters responding to the attack.
According to evidence presented at trial, on the night of Nov. 28, 2009, Hamidullin and his fighters initiated their attack with an assault on Camp Leyza. Soon after the attack began, two U.S. Army helicopters responded to Camp Leyza, just as Hamidullin anticipated from his months of planning and reconnaissance. Military witnesses testified at trial that it was a common tactic for insurgents at the time to attack an Afghan position intending to draw in and ambush their real target, the responding U.S. forces.
Hamidullin positioned himself on a nearby hill, away from his fighters, where he had a clear view of the battlefield and could radio orders to his fighters. As the helicopters approached, he ordered his fighters to fire the anti-aircraft weapons he had strategically placed in the area. Both weapons malfunctioned and the helicopters were not fired upon. After the heavy weapons failed to fir, Hamidullin ordered his fighters to pack up their weapons and other gear and return to Pakistan. U.S. military helicopters in the area observed the insurgents “bounding back” in an organized military fashion. Thereafter, U.S. aircraft spotted the insurgents attempting to set an ambush for the approaching U.S. and Afghan forces. Once the aircraft confirmed that the insurgents were carrying Kalashnikov machine guns and rocket propelled grenade launchers, the U.S. helicopters were given approval to engage the insurgents. U.S. forces ultimately identified and eliminated approximately 20 of Hamidullin’s fighters.
The next morning, as U.S. and Afghan forces were conducting a battle damage assessment, Hamidullin was found hiding on the battlefield. Hamidullin opened fire on the U.S. forces with a Kalashnikov machine gun, but was wounded and captured after a brief firefight. U.S. military personnel testified during the trial that the insurgents were remarkably well-equipped and in addition to the heavy weapons were carrying, for example, GPS devices and $400 military-style watches. During the battle damage assessment, U.S. military personnel found, among other weapons carried by the insurgents, three 50 caliber anti-aircraft machine guns, 82 millimeter recoilless rifles, and scores of smaller weapons and grenades. The insurgents were also carrying all the materials necessary to construct three different kinds of improvised explosive devices, which were all of the kind that had been used by insurgents against U.S. forces operating at that time in Khowst Province.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; John P. Carlin, Assistant Attorney General for National Security; 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 Henry E. Hudson.
This case was investigated by the FBI’s Washington Field Office. Assistant U.S. Attorney James P. Gillis, and former Assistant U.S. Attorney Michael Gill of the Eastern District of Virginia, and Trial Attorney Jennifer E. Levy of the National Security Division’s Counterterrorism 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. 3:14-cr-00140.
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North Carolina Man Sentenced for Possession of Stolen FirearmsRead the Press Release
NORFOLK, Va. – Robert James Gibson, 25, of Roxobel, North Carolina, was sentenced today to 72 months in prison for possession of stolen firearms. Gibson was ordered to pay $15,000 in restitution for the cost of the stolen firearms and the damage done to AWH Arms during the course of the burglary.
Gibson pleaded guilty on Sept. 3, 2015. According to court documents, Gibson and a co-conspirator broke into AWH Arms in Virginia Beach and stole 22 firearms which Gibson and the co-conspirator were selling to people on the streets. This case came to light when a drunken individual left a night club and started shooting a gun into the air. After responding to a call about the shooting, police recovered the firearm and discovered it was stolen from the break-in at AWH Arms. The drunken individual identified both Gibson and the co-conspirator who sold him the stolen firearm.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Charles E. Smith, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by U.S. District Judge Mark S. Davis. Assistant U.S. Attorney William D. Muhr 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-69.
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Federal Jury Convicts Henrico County Man of Gun and Drug ChargesRead the Press Release
RICHMOND, Va. – Nelson Watts Broadie, Jr., 21, of Henrico County, was convicted by a federal jury yesterday of six separate offenses, including possession of a firearm and ammunition by a previously convicted felon, possession and distribution of crack cocaine, and possession and brandishing of a firearm in furtherance of a drug trafficking crime.
Broadie was indicted on Aug. 4, 2015. According to evidence presented at trial, on June 27, 2015, Broadie participated in an armed robbery of a person at his home and discharged his 9 mm firearm during that robbery attempt. Evidence presented also confirmed that between July 15 and July 24, 2015, Broadie possessed the same loaded 9 mm semiautomatic pistol. On July 15, 20, and 21, 2015, Broadie sold crack cocaine to a confidential informant while under surveillance, and during the July 20, and 21, 2015 sales, Broadie sold the crack cocaine to the confidential informant while under surveillance, and while unlawfully possessing and brandishing the same firearm identified above, in order to intimidate that drug customer.
Broadie will be sentenced on March 4, 2016, and faces a mandatory minimum of 32 years in prison for the two counts of possession and brandishing of a firearm in furtherance of a drug trafficking violation crime, plus additional consecutive terms in prison for the possession of a firearm and ammunition by a previously convicted felon, and three counts of possession and distribution of crack cocaine. 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; 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 verdict was accepted by U.S. District Judge Henry E. Hudson.
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-137.
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Chesapeake Man Pleads Guilty to Armed RobberiesRead the Press Release
NORFOLK, Va. – Raymond Wyche, 47 of Chesapeake, pleaded guilty today to charges involving armed robberies of a Wilco-Hess gas station in Virginia Beach and an Exxon gas station in Chesapeake.
In a statement of facts filed with the plea agreement, Wyche committed these robberies brandishing what appeared to be a firearm aiming it at employees and demanding that they give him money. He stole $651 from the two robberies with which he pleaded guilty. While Wyche covered his face during the armed robberies, three witnesses that know Wyche well were able to identify him through video and audio surveillance. They recognized his voice, certain phrases he used, his mannerisms, size, shape, articles of clothing he wore, and a distinctive pinky ring that he had on his right pinky during all eight armed robberies. After the Exxon gas station armed robbery in Chesapeake, Wyche is seen on video shedding his clothing behind the station and in the process his face became visible.
Wyche was indicted by a federal grand jury on August 5, 2015, on eight counts of interference with commerce by means of robbery and two counts of using a firearm during a crime of violence. The indictment charged the following eight robberies:
Date
Location
Feb. 11, 2014
7-Eleven, 6673 Indian River Road, Virginia Beach
March 19, 2014
Wilco-Hess, 6048 Indian River Road, Virginia Beach
March 25, 2014
7-Eleven, 201 S. Witchduck Road, Virginia Beach
April 25, 2014
Exxon, 841 S. Military Highway, Virginia Beach
June 6, 2014
BP, 4900 Princess Anne Road, Virginia Beach
June 25, 2014
Exxon, 1102 S. Military Highway, Chesapeake
June 29, 2014
7-Eleven, 5444 Virginia Beach Boulevard, Virginia Beach
July 16, 2014
Gulf, 6029 Indian River Road, Virginia Beach
Wyche faces a maximum penalty of 20 years in prison when sentenced on March 16, 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; Mark R. Herring, Attorney General of Virginia; and Charles E. Smith, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after the plea was accepted by U.S. Magistrate Judge Doug E. Miller.
This case was investigated by ATF’s Washington Field Division with assistance from the Chesapeake and Virginia Beach Police Departments. Assistant U.S. Attorney William D. Muhr and Special Assistant U.S. Attorney John F. Butler 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. 2:15-cr-97.
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Government Contractor to Pay $1 Million to Settle Civil Fraud AllegationsRead the Press Release
ALEXANDRIA, Va. – DRS Technical Services, Inc. (DRS TSI), located in Herndon, has agreed to pay $1 million to settle a civil fraud case that claimed their employees engaged in labor mischarging resulting in a loss to the U.S. government of $544,000.
The allegations involved the overcharging of three U.S. Army contracts DRS TSI was working on in Kuwait, where 15 DRS TSI employees were directed to record more time for labor hours than was actually being worked. After discovering the improper conduct through its internal compliance program, DRS TSI made a voluntary disclosure to the U.S. government under the Contractor Business Ethics Compliance Program and Disclosure Rule, also known as the Federal Acquisition Regulations Mandatory Disclosure Rule. DRS TSI took corrective action, including disclosure of the conduct to the Department of Defense Office of Inspector General.
Following an investigation of the disclosure by the government, DRS TSI agreed to pay $1 million to resolve allegations under the civil False Claims Act, and other related civil statutory and common law remedies arising from the conduct. The False Claims Act makes it illegal for any person or entity to present a false or fraudulent claim to the United States for payment and/or to retain overpayments that were improperly received. The civil claims settled by DRS TSI are allegations only; there has been no determination of civil liability.
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 Army’s Criminal Investigation Command, and the Defense Criminal Investigative Service with assistance from the Defense Contract Audit Agency.
The matter was investigated by Assistant U.S. Attorney Richard Sponseller. 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.
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Former Tax Preparer Sentenced in $20 Million Tax Fraud SchemeRead the Press Release
RICHMOND, Va. – Sean M. Weaver, 34 years old, of Alexandria, was sentenced today to 71 months in prison for mail fraud and money laundering. Weaver was also ordered to pay $20,427,688.03 in restitution to victims of the offense.
Weaver pleaded guilty on Aug. 19, 2015. According to court documents, Weaver was a member of the transaction tax practice group in the Arlington office of Ryan LLC, a tax services firm headquartered in Dallas, Texas. The transaction tax practice group specialized in submitting claims to state and local taxing authorities to obtain refunds of sales and/or use tax overpayments made by Ryan LLC’s corporate clients. Weaver managed a team of 10 to 15 employees and was responsible for submitting claims to the state taxing authorities on behalf of Ryan LLC’s clients. Between October 2011 and December 2014, Weaver submitted and caused to be submitted several false claims for sales and/or use tax refunds to the Virginia Department of Taxation and the Texas Comptroller of Public Accounts on behalf of two of Ryan LLC’s clients. In submitting the false claims, Weaver manipulated client transactional data and falsified invoices and other transactional records to inflate the amount of sales and/or use tax actually paid by the clients during certain transactions. As a result of the scheme, the state taxing authorities issued over $20 million in fraudulent refunds to Ryan LLC clients and Weaver received over $350,000 in personal bonus payments generated by the scheme. As part of the plea agreement, Weaver agreed to forfeit $250,480.09 seized by the United States as property involved in the offense and the value of his account with a peer-to-peer lending company.
Ryan LLC voluntarily reported Weaver’s actions to law enforcement and fully cooperated in the investigation.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Division; Thomas M. Jankowski, Special Agent in Charge of IRS-Criminal Investigation’s (IRS-CI) Washington D.C. Field Office; and David Bowers, Acting Inspector in Charge of the Washington Division of the United States Postal Inspection Service (USPIS), made the announcement after sentencing by U.S. District Judge John A. Gibney, Jr. Assistant U.S. Attorneys Dominick S. Gerace and Michael S. Dry 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-139.
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Former President of Guinea Pleads Guilty to Bulk Cash Smuggling and False StatementsRead the Press Release
ALEXANDRIA, Va. – Sekouba Konate, 51, the former President of Guinea in West Africa and current General Commander of the Security Forces of the African Union, pleaded guilty today to charges of bulk cash smuggling and false statements.
In a statement of facts filed with the plea agreement, on June 15, 2013, General Konate arrived at Washington Dulles International Airport from Ethiopia and proceeded through Customs and Immigration illegally carrying thousands of dollars in undeclared cash. General Konate previously had applied for and received a G-4 visa to visit the United States based upon his employment with a foreign government. From in or about January 2010 to December 2010, General Konate served as the transitional President of Guinea following a military coup. From in or about December 2010 to the present, he has served as the General Commander of the Security Forces of the African Union—a military organization of 54 member states.
Upon his arrival at Dulles Airport, General Konate approached Primary Inspection and handed the assigned officer from Customs and Border Protection (CBP), among other things, a signed Customs Declaration form that falsely and willfully represented that he was not carrying over $10,000 in U.S. currency or its equivalent anywhere on his person or in his effects. When asked by the CBP Officer for a verbal confirmation, General Konate falsely and willfully repeated the same representation, even though he knew that he was carrying far in excess of $10,000, which was concealed on his person and in his luggage, in order to evade a currency-reporting requirement.
Following his referral to Secondary Inspection for further investigation, General Konate encountered two other CBP Officers and a Special Agent with Homeland Security Investigations. When he was asked again by the officers whether he was carrying over $10,000, General Konate this time responded that he was and amended his Customs Declaration form to reflect the $14,000 in U.S. currency that he was carrying in his wallet. In truth and in fact, General Konate knew that he was carrying significantly more currency at the time and willfully and materially made a false statement on his Customs Declaration form that misrepresented the actual amount of currency that he had concealed in his luggage. Based upon the inconsistency in his prior responses, CBP Officers conducted a preliminary search of General Konate’s luggage. The search revealed an additional $30,750 in U.S. currency, which was divided into several stacks of money and was concealed in various compartments of General Konate’s luggage.
Subsequent to the discovery of the $30,750, CBP Officers asked General Konate to complete a document, a FinCEN 105 form, that he knew would be filed with the Financial Crimes Enforcement Network of the U.S. Department of Treasury. General Konate completed and signed the FinCEN 105 form in the presence of the officers and represented that he was carrying a total of only $44,750 in currency, which accounted for the $14,000 in his wallet and the $30,750 that had been found during the search. When General Konate signed the FinCEN 105 form, he willfully and materially misrepresented the total amount of money that he had concealed in his luggage.
After General Konate signed the FinCEN 105 form, CBP Officers conducted a second and more thorough search of his luggage. During the search, officers discovered an additional $20,020 in U.S. currency, which again was divided into several stacks of money and was concealed in various compartments of General Konate’s luggage. Following the searches, General Konate was found in possession of a total of $64,770 in U.S. currency, in stark contrast to his initial representation on his Customs Declaration form that he was not carrying over $10,000. During his encounters with officers, General Konate repeatedly made statements that the questioning of him and accompanying searches were improper given his status as the former President of Guinea and current Commanding General of the African Union forces.
General Konate was indicted by a federal grand jury on May 7, 2015, and faces a maximum penalty of five years in prison when sentenced on Feb. 19, 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 Clark E. Settles, Special Agent in Charge of U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, made the announcement after the plea was accepted by U.S. District Judge Gerald Bruce Lee. Assistant U.S. Attorneys Gene Rossi, Monika L. Moore, and Special Assistant U.S. Attorney Anna G. Kaminska 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-132.
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Ten Individuals Convicted and Sentenced in Health Care Fraud SchemeRead the Press Release
NORFOLK, Va. – Ten former employees of Progressive Counseling Services, LLC, a Virginia Beach based counseling business, were convicted and sentenced for their roles in a scheme to defraud the Virginia Medicaid program.
The 10 convicted defendants and their respective sentencing information are listed below:
Name, Age, Hometown
Sentencing Information
David Weaver, 71, of Chesapeake
Sentenced on June 5 to 72 months in prison
Doretha Selby-Diggs, 40, of Portsmouth
Sentenced on Feb. 18 to 60 months in prison
Lisa Barrett, 49, of Norfolk
Sentenced on March 4 to 96 months in prison
Barbara Bing Banks, 34, of Hampton
Sentenced on Oct. 30 to 41 months in prison
Corey Etheridge, 42, of Chesapeake
Sentenced on July 1 to 72 months in prison
Jacqueline Harris, 34, of Portsmouth
Sentenced on March 4 to 60 months in prison
Verline Harris, 48, of Virginia Beach
Sentenced on Oct. 27 to 108 months in prison
Arlette Johnson, 58, of Virginia Beach
Sentenced on Nov. 6 to 96 months in prison
Alfreda Stallion, 52, of Virginia Beach
Sentenced on Nov. 30 to 90 months in prison
Johnny Stallion, 34, of Las Vegas
Sentenced on Nov. 16 to 60 months in prison
According to Court records, the defendants conspired to obtain reimbursement payments from the Virginia Medicaid Assistance Program by submitting false claims for mental health support services in 2011 and 2012. Mental health support services are provided to assist individuals with severe psychiatric limitations to live in the community in the least restrictive environment possible. Nine of the defendants operated as Qualified Mental Health Professionals and claimed to provide mental health support services to Medicaid-eligible clients in the Tidewater area. David Weaver operated as a Licensed Mental Health Professional and was responsible for assessing Progressive patients to ensure they required mental health services. According to Court records, Weaver and Progressive’s owner created fraudulent assessments of Progressive clients to obtain authorization to bill Medicaid for mental health support services. Once Progressive obtained this authorization, false Medicaid reimbursement claims were submitted on behalf of mental health support services purportedly provided by Selby-Diggs, Barrett, Bing Banks, Etheridge, Jacqueline Harris, Verline Harris, Johnson, Alfreda Stallion, and Johnny Stallion. These reimbursement claims were false because most of the counselors were unqualified to serve as mental health professionals, the counseling sessions never occurred, and progress notes used to document the sessions were fabricated.
Weaver, Selby-Diggs, Barrett, Etheridge, and Jacqueline Harris all pleaded guilty to various charges associated with the scheme. Bing Banks, Verline Harris, Arlette Johnson, Alfreda Stallion, and Johnny Stallion were convicted of various charges after a month long jury trial.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; Mark R. Herring, Virginia Attorney General; John S. Adams, Special Agent in Charge of the Federal Bureau of Investigations’ Norfolk Field Office; Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C. Field Office; Thomas Jankowski, Special Agent in Charge, Internal Revenue Service-Criminal Investigations, Washington, D.C. Field Office; and Steven Anderson, Special Agent in Charge for the Washington Regional Office of the U.S. Department of Labor’s Office of Inspector General-Office of Labor Racketeering and Fraud Investigations, made the announcement after sentencing by United States Chief District Judge Rebecca Beach Smith. Assistant U.S. Attorneys Joseph L. Kosky and 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. 2:14cr137.
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Convicted Felon Pleads Guilty to Elaborate Tax Fraud SchemeRead the Press Release
RICHMOND, Va. – David Solomon, aka David Chityal, 39, of Budapest, Hungary, pleaded guilty today to charges of conspiracy to commit mail and wire fraud for his role in an elaborate tax fraud scheme he designed with a co-conspirator while in prison.
In a statement of facts filed with the plea agreement, Solomon admitted that he was incarcerated in a federal correctional facility with an individual identified as Conspirator 1 from approximately September 2009 and March 8, 2010. Conspirator 1 previously was convicted in the Eastern District of Virginia of a $126 million fraud scheme and sentenced to 100 years of imprisonment. Conspirator 1 also was ordered to pay approximately $128 million in restitution to victims of his fraud. Conspirator 1 previously had conveyed certain assets to his Bankruptcy Estate for this restitution, including approximately $2 million in tax refunds. When Solomon was released from prison and deported to his native Canada, he remained in touch with Conspirator 1. Together they engaged in a scheme to obtain these approximately $2 million in tax refunds so that Conspirator 1 could obtain a particular New York attorney for his criminal appeal. Using this attorney, Solomon and Conspirator 1 changed the Internal Revenue Service (IRS) power of attorney forms so that the tax refund checks would be sent to the New York attorney, not Conspirator 1’s Bankruptcy Estate for his victims. In September 2010, the IRS sent the $2 million tax refund checks to the New York attorney, who in turn sent the checks to an attorney in Canada. The Canadian attorney flew to the federal correctional facility in which Conspirator 1 was incarcerated and Conspirator 1 endorsed the checks. The Canadian attorney then flew with the negotiated checks to the Turks and Caicos Islands to deposit them in a trust account. He was within hours of depositing the checks when the lawyer for Conspirator 1’s Bankruptcy Estate trustee learned what had happened and contacted the Canadian attorney. The tax refunds were returned to the Bankruptcy Estate and paid to Conspirator 1’s fraud victims.
Solomon was indicted by a federal grand jury on March 20, 2012, and was extradited from Hungary on Oct. 26, 2015. Solomon faces an agreed-upon maximum penalty of five years in prison when sentenced on Feb. 8, 2016. The maximum statutory sentence 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, made the announcement after the plea was accepted by Senior U.S. District Judge Robert E. Payne. Assistant U.S. Attorneys Thomas A. Garnett and Jessica D. Aber 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. 3:12-cr-44.
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Former Sailor and Convicted Serial Rapist Pleads Guilty to 2010 AttackRead the Press Release
NORFOLK, Va. – Amin Jason Carl Garcia, 26, of New York, New York, a convicted serial rapist and former U.S. Navy sailor, pleaded guilty today to charges relating to the attack of a former Army officer while she was taking a shower at Camp Arifjan in Kuwait in 2010.
In a statement of facts filed with the plea agreement, on April 29, 2010, the U.S. Army Criminal Investigative Division (CID) Kuwait, was contacted regarding the assault and attempted rape of a U.S. Army officer in the female shower trailer at Camp Arifjan, Kuwait. According to the victim, approximately three minutes into her shower, an unknown black male whose face was almost fully covered by a military tan undershirt, pulled her from the shower to the opposite end of the trailer and ordered her to face away from him. The victim resisted her attacker, who subsequently cut her numerous times with a box cutter type knife and punched her several times in the head. At one point during the attack, the attacker stated that he “guessed” at that point he would have to kill her. Eventually, the victim complied with her attacker and stated that she would do what he wanted to do, but begged that he not cut her any more. Shortly after the comment, the attacker fled the scene on foot and the victim ran to her tent to get help before being transported to the medical facility in Camp Arifjan.
According to court documents, while processing the crime scene investigators recovered a shirt covered in what appeared to be blood. That shirt was believed to be the shirt that was covering the face of the attacker. Also discovered at the crime scene was what appeared to be a trail of blood that led from the female shower trailer to a washroom in which additional blood was collected. Upon testing of the material collected by the U.S. Criminal Investigative Laboratory (USACIL), it was determined that the stains were produced by blood and two DNA profiles were developed. One DNA profile was that of the female known victim, and the other was identified as from an unknown male with Type A blood. The unknown male Type A blood profile also matched the blood found in the washroom. Subsequent investigative steps identified Garcia as a suspect in the assault at Camp Arifjan. These steps included a check of military records, which confirmed that Garcia was in the military and had been assigned to Camp Arifjan at the time of this assault.
According to court documents, in December 2013, Garcia was still in the U.S. Navy Reserves. On the weekend of Dec. 14, 2013, when Garcia was serving his reserve drill period at the Navy Operational Support Center (NOSC), Bronx, New York, NCIS investigators shadowed him and, after Garcia ate lunch, agents seized the fork, two cups, and banana to recover swabs for DNA analysis. The analysis of the biological material seized by investigators revealed that it matched the DNA that was obtained from the assault of the victim at Camp Arifjan in April 2010.
Garcia’s DNA also was a match for DNA recovered at the scene of a sexual assault on a Norfolk woman in 2008. The same rapist returned to the victim’s home again later in 2008 and raped the initial victim’s daughter. NCIS and the Norfolk Police Department (NPD) began to work together to try to identify the rapist, and NPD later recovered latent fingerprints from the scene in 2008. Those fingerprints from 2008 matched the fingerprints of Garcia. Garcia was a U.S. Navy reservist at the time of the 2008 rapes and lived approximately one mile from the victims.
Garcia was originally indicted by a federal grand jury on Oct. 9, 2014, and will be sentenced on Feb. 22, 2016. In August 2014, Garcia was convicted of the 2008 rapes in Norfolk Circuit Court and was sentenced to life in prison.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, made the announcement after the plea was accepted by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorneys Elizabeth M. Yusi and Benjamin L. Hatch 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. 2:14cr134.
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Federal Correctional Officer Sentenced to 18 Months for Public CorruptionRead the Press Release
RICHMOND, Va. – Jermaine Brown, 37, of Chesterfield, was sentenced today to 18 months in prison for accepting bribes in his role as a federal prison guard in exchange for smuggling cigarettes to inmates.
Brown pleaded guilty on Aug. 20, 2015. According to court documents, Brown admitted that he accepted bribes in exchange for providing contraband cigarettes to inmates while he was employed as a correctional officer at Federal Correctional Institute–Petersburg. After providing the contraband cigarettes, Brown instructed the inmates to have their friends or family members wire transfer money to a known associate of Brown.
According to court documents, on or about Feb. 10, 2011, Brown’s associate picked up two Western Union wire transfers totaling $1,450 sent by or on behalf of the inmates, and the associate delivered the money to Brown as a bribe for providing contraband cigarettes to inmates at FCI Petersburg. As part of his plea, Brown agreed that he received and accepted a total of $3,050 in bribes from federal inmates.
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 Michael Tompkins, Special Agent in Charge of the Department of Justice Office of the Inspector General’s Washington Field Office, made the announcement after sentencing by U.S. District Judge M. Hannah Lauck. Assistant U.S. Attorneys Erik S. Siebert and Michael C. Moore 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. 3:15-cr-93.
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Armed Crack Dealer Sentenced to 30 Years in PrisonRead the Press Release
ALEXANDRIA, Va. – Tyrone Anthony Jones, 32, of Washington, D.C., was sentenced today to 360 months in prison for possession of a firearm in furtherance of drug trafficking, and conspiracy to distribute 28 grams or more of crack cocaine.
Jones pleaded guilty on Sept. 4, 2015. According to court documents, between December 2014 and July 2015, Jones distributed crack cocaine on at least 13 occasions, accounting for a total of approximately 26 grams of crack. Jones also engaged in an illegal sale of a firearm and ammunition. At the time of Jones’s arrest, law enforcement agents recovered a .45 caliber handgun, ammunition, approximately 8.5 additional grams of crack, and $13,910 from Jones’s apartment. Jones was previously convicted in 2006 of conspiracy to distribute 50 grams or more of crack cocaine, and possession of a firearm in furtherance of a drug trafficking crime.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; Charles E. Smith, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; and M. Jay Farr, Chief of Arlington County Police Department, made the announcement after sentencing by U.S. District Judge C. Cacheris. Assistant U.S. Attorney Tobias D. Tobler and Special Assistant U.S. Attorney Marc J. Birnbaum 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-254.
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Airport Baggage Handlers Plead Guilty to Theft ConspiracyRead the Press Release
NORFOLK, Va. – Chris Arthur Perry, Jr., 25, of Chesapeake, and Gregory Paul Wingard, Jr., 27, of Norfolk, pleaded guilty today for their roles in a conspiracy to steal valuable items from passengers’ bags at the Norfolk International Airport.
In a statement of facts filed with the plea agreement, from approximately December 2013 to June 4, 2015, Perry and Wingard used their positions as baggage handlers to break into checked baggage in the secure area of the Norfolk International Airport. They removed money, electronics, and other valuable items and then sold the items to members of the community or to pawn shops in the Tidewater area. Perry and Wingard specifically targeted firearm containers while searching for bags to break into. Part of the conspiracy was to steal firearms by switching baggage tags, causing firearm containers to be transported away from the original intended destination and preventing detection from law enforcement.
Perry and Wingard were indicted by a federal grand jury on Oct. 7, 2015. Each man faces a maximum penalty of five years in prison when sentenced on March 14, 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 John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after the pleas were accepted by U.S. Magistrate Judge Douglas E. Miller.
This case was investigated by the FBI’s Norfolk Field Office with the assistance of Transportation Security Administration and U.S. Airways. Assistant U.S. Attorney Joseph E. DePadilla is prosecuting this 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-131.
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Operator of Second-Largest Music Piracy Website in the U.S. Sentenced to 3 Years for Criminal Copyright InfringementRead the Press Release
NORFOLK, Va. – Rocky P. Ouprasith, 23, of Charlotte, North Carolina, was sentenced today to 36 months in prison for reproducing and distributing without permission millions of infringing digital copies of copyrighted works, including copies of popular songs and albums before they were commercially available. Ouprasith was also sentenced to two years of supervised release, and ordered to pay restitution in the amount of $45,288.62, and forfeit $50,851.05.
This case represents the first criminal copyright infringement sentence imposed for a cyberlocker operator in the United States.
“Ouprasith operated the second largest online file sharing site in the United States, averaging nearly 4.5 million visits per month and resulting in an estimated collective loss of more than $10 million per month to the rightful owners,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “I believe this sentence reflects the seriousness of the crime and will promote greater respect for the law and property rights of others. I want to thank my prosecutors and our investigative partners for their outstanding work in this case.”
“HSI is responsible for enforcing federal regulations that exist to protect American businesses from unfair trade practices and intellectual property theft,” said Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). “Online piracy has a serious financial impact to business, which is felt at every level of a transaction – from the producer to the point-of-sales clerk.”
Ouprasith pleaded guilty on Aug. 21, 2015. According to court documents, between May 2011 and October 2014, Ouprasith operated RockDizMusic.com, a website originally hosted on servers in France and later in Canada, from which Internet users could find and download infringing digital copies of popular copyrighted songs and albums. Ouprasith admitted that he obtained digital copies of copyrighted songs and albums from online sources, and that he encouraged and solicited others, referred to as “affiliates,” to upload digital copies of copyrighted songs and albums to websites, including RockDizFile.com, that were hosted on servers in Russia, France and the Netherlands, and that hosted hyperlinks to content being offered for download on RockDizMusic.com. Ouprasith further admitted that to encourage such activity, he agreed to pay the affiliates based on the number of downloads from his website.
According to the Recording Industry Association of America, in 2013, RockDizFile.com was the second-largest online file sharing website specializing in the reproduction and distribution of infringing copies of copyrighted music in the United States. Ouprasith admitted that in 2013 and 2014, he either ignored or pretended to take remedial action in response to complaints from copyright holders and their representatives that the website contained links to infringing copies protected songs and albums.
In October 2014, federal law enforcement authorities shut down RockDizMusic.com and RockDizFile.com, and law enforcement authorities in the Netherlands and France seized file-hosting servers utilized by Ouprasith.
According to court documents, the market value of Ouprasith’s illegally pirated material was more than $6 million.
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; and Clark E. Settles, Special Agent in Charge of HSI Washington, D.C., made the announcement after sentencing by Chief U.S. District Judge Rebecca Beach Smith. The case was prosecuted by Randy Stoker, Assistant U.S. Attorney for the Eastern District of Virginia, and John H. Zacharia, Assistant Deputy Chief for Litigation of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS). The CCIPS Cyber Crime Lab, the Criminal Division’s Office of International Affairs, as well as Dutch, French and Canadian law enforcement officials have provided significant assistance.
The sentencing today is related to the many efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force). The IP Task Force supports prosecution priorities, promotes innovation through heightened civil enforcement, enhances coordination among federal, state, and local law enforcement partners, and focuses on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders. To learn more about the IP Task Force, go to www.justice.gov/iptf.
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-95.
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Operator of Second-Largest Music Piracy Cyberlocker in United States Sentenced to 36 Months in Prison for Criminal Copyright InfringementRead the Press Release
First Criminal Copyright Infringement Sentence Imposed for a Cyberlocker Operator
The operator of the RockDizMusic.com music piracy website and cyberlocker was sentenced today to serve 36 months in prison, 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 and Special Agent in Charge Clark E. Settles of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Washington, D.C.
Rocky P. Ouprasith, 23, of Charlotte, North Carolina, was sentenced by Chief U.S. District Judge Rebecca Beach Smith of the Eastern District of Virginia. In addition to his prison term, Ouprasith was sentenced to serve two years of supervised release and was ordered to forfeit $50,851.05 and pay $48,288.62 in restitution. On Aug. 21, 2015, Ouprasith pleaded guilty to one count of criminal copyright infringement.
According to admissions made in connection with his guilty plea, between May 2011 and October 2014, Ouprasith operated RockDizMusic.com, a website originally hosted on servers in France and later in Canada, from which Internet users could find and download infringing digital copies of popular, copyrighted songs and albums. Ouprasith admitted that he obtained digital copies of copyrighted songs and albums – including “pre-release” songs that were not yet commercially available to consumers – from online sources and encouraged and solicited others, referred to as “affiliates,” to upload digital copies of copyrighted songs and albums to websites, including RockDizFile.com, that were hosted on servers in Russia, France and the Netherlands, and that hosted hyperlinks to content being offered for download on RockDizMusic.com. Ouprasith further admitted that to encourage such activity, he agreed to pay the affiliates based on the number of downloads from his website.
According to the Recording Industry Association of America, in 2013, RockDizFile.com was the second-largest online file-sharing website specializing in the reproduction and distribution of infringing copies of copyrighted music in the United States. Ouprasith admitted that in 2013 and 2014, he either ignored or pretended to take remedial action in response to complaints from copyright holders and their representatives that the website contained links to infringing copies protected songs and albums.
In October 2014, federal law enforcement authorities shut down RockDizMusic.com and RockDizFile.com, and law enforcement authorities in the Netherlands and France seized file-hosting servers utilized by Ouprasith.
According to court documents, the market value of Ouprasith’s illegally-pirated material was more than $6 million.
This case is being investigated by HSI. The case is being prosecuted by Assistant Deputy Chief for Litigation John H. Zacharia of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Randy Stoker of the Eastern District of Virginia. The CCIPS Cyber Crime Lab and the Criminal Division’s Office of International Affairs, as well as Dutch, French and Canadian law enforcement officials have provided significant assistance.
The enforcement action announced today is related to the many efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force). The IP Task Force supports prosecution priorities, promotes innovation through heightened civil enforcement, enhances coordination among federal, state, and local law enforcement partners, and focuses on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders. To learn more about the IP Task Force, go to www.justice.gov/iptf.
Chesapeake Man Pleads Guilty to Illegally Receiving Silencers from CanadaRead the Press Release
NORFOLK, Va. – Benjamin Lloyd Fisher, 42, of Chesapeake, pleaded guilty today to charges of illegally receiving imported firearms, namely silencers.
In a statement of facts filed with the plea agreement, Fisher admitted that in the spring of 2014 he purchased a homemade .22 caliber suppressor (silencer) from a Canadian source he had met online. The parties arranged that the silencer would be shipped to Fisher in two separate packages, in order to avoid detection by U.S. Customs and Border Patrol. Based on email correspondence between Fisher and his Canadian source, as well as other evidence, in May 2015 ATF agents executed a search warrant on the home in Chesapeake that Fisher shared with his mother. During the search agents recovered 13 firearms, eight silencers, and crates of ammunition. One month later, several additional firearms associated with Fisher were recovered. Fisher is a prohibited person and unable to possess a firearm due to a previous crime of violence.
Fisher was indicted by a federal grand jury on Sept. 16, 2015. Fisher faces a maximum penalty of five years in prison when sentenced on Feb. 29, 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 Charles E. Smith, Special Agent in Charge of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) Washington Field Office, made the announcement after the plea was accepted by Senior U.S. District Judge Robert G. Doumar. 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. 2:15cr117.
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Man Pleads Guilty to eBay and PayPal Scheme to Steal Special Agent’s IdentityRead the Press Release
ALEXANDRIA, Va. – Rohit Jawa, 25, formerly of Cincinnati, Ohio, pleaded guilty today to an indictment charging him with eight counts of wire fraud and one count of aggravated identity theft.
Based on 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.
Jawa was indicted by a federal grand jury on Aug. 13, 2015. Jawa faces a mandatory minimum of two years in prison and a maximum penalty of 20 years in prison when sentenced on Feb. 12, 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; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; and Zane E. Bridges, Chief of Digital Investigative Services for USPS-OIG, made the announcement after the plea was accepted 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 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. 1:15-cr-239.
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Leader of Portsmouth Bloods Gang Sentenced to 16 Years in PrisonRead the Press Release
NORFOLK, Va. – Theodore M. Vann, aka Flatline, 33, of Portsmouth, who was the highest-ranking member of the Gorilla Mafia Piru, a Bloods gang set based in Portsmouth, was sentenced today to 192 months in prison for conspiracy to distribute heroin and being a felon in possession of a firearm. In connection with this conviction, Vann forfeited two .38 caliber handguns, a 9MM Ruger P95 pistol, and a Hi-Point .40 caliber handgun.
Vann pleaded guilty on June 25, 2015. According to court documents, Vann, together with his fellow gang members, manufactured and distributed far in excess of one kilogram of heroin in Portsmouth from late 2013 to August 2014. Vann conspired with co-conspirators to distribute heroin in the Ghent area of Norfolk, Portsmouth, and other places throughout the Eastern District of Virginia. Vann travelled to New Jersey and to Richmond and Petersburg, Virginia, to purchase wholesale amounts of heroin that were later “cut” with additives in Portsmouth stash houses to increase their volume and profitability.
Vann also purchased wholesale amounts of heroin during the course of the conspiracy from Alonzo Outten, 35, of Portsmouth, who was sentenced to 30 years in prison on Nov. 4, 2015. Vann also purchased wholesale amounts of heroin from members of the Imperial Gangsta Bloods, whose leader, Christopher Smith, 32, of Portsmouth, was sentenced to life in prison on Oct. 30, 2015.
Special Agents from the FBI and officers from the Portsmouth Police Department conducted a series of undercover heroin and firearm purchases from the Gorilla Mafia Piru gang. In one surveillance video recorded in a Portsmouth “stash house,” Vann is seen “cutting” heroin with additives and placing it into gel capsules for street-level distribution. That day, Vann possessed approximately 390 grams of heroin, a large amount of U.S. currency, strainers, a cutting agent, capsules, and plastic bags.
Antwane Williams, the second-highest ranking member of the gang, was sentenced to 10 years in prison on Sept. 24, 2015. Jeffery Henry, an associate of the gang who helped expand its retail market and tested its heroin, was sentenced to 3 years in prison on Oct. 26, 2015.
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 sentencing by U.S. District Judge Raymond A. Jackson.
This case was investigated by the FBI’s Norfolk Field Office with the assistance of the Portsmouth Police Department. The case was prosecuted by Special Assistant U.S. Attorney John F. Butler, and Assistant U.S. Attorneys Joseph E. DePadilla and Andrew C. Bosse.
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-60.
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Leader of “Scheme Team” Gang Sentenced to 20 Years for Sex TraffickingRead the Press Release
ALEXANDRIA, Va. – Alexis Rahkeem Carter, aka Bishop, 25, of Fairfax, was sentenced today to 20 years in prison for sex trafficking of a child.
Carter pleaded guilty on Aug. 31, 2015. According to court documents, Carter was a leader of a gang known as “Scheme Team.” In addition to robbery, narcotics, and weapons trafficking, Carter and Scheme Team generated revenue by sex trafficking teenage girls and adults. One of the girls sex trafficked by Carter was 15 years old. Carter instructed victims to lie to customers by telling them that they were over 18 years old, unless a customer requested an underage girl. Despite their youth, Carter instructed the victims to submit to any sex acts that customers demanded. In addition to exploiting these minors for profit, Carter also used these victims for his own sexual gratification.
Carter sex trafficked women and girls in 2014 and 2015 in Maryland, West Virginia, Pennsylvania, and Virginia. Carter set a monetary quota of $1,000 per day, which victims were required to earn, and the victims generally met this quota. Carter received nearly all of the commercial sex proceeds earned by the girls he sex trafficked, and he sometimes required victims to submit to searches to ensure they were not keeping any of the prostitution proceeds from Carter.
To keep victims compliant, Carter frequently provided them with alcoholic beverages and controlled substances, including OxyContin, Percocet, molly, spice (also known as “K2”), Xanax, Roxicodone, and marijuana. Carter also told victims that he had guns, threatened victims with violence, and used physical force on victims, including pulling their hair and shoving them.
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; and Charles E. Jett, Stafford County Sheriff, made the announcement after sentencing by U.S. District Judge Claude M. Hilton. Assistant U.S. Attorney Michael J. Frank is prosecuting the case and was assisted by the Stafford County Commonwealth’s Attorney’s Office.
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-256.
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Former TSA Officer Sentenced for Stealing Items from Passengers’ LuggageRead the Press Release
ALEXANDRIA, Va. – Douglas Wayne DeWeese, 55, of Damascus, Maryland, was sentenced today to 10 months in prison for theft of property in interstate commerce, along with two years of supervised release and restitution.
DeWeese pleaded guilty on Aug. 20, 2015. According to court documents, from 2008 through 2012, DeWeese was employed by the Transportation Security Administration (TSA) as a Transportation Security Officer responsible for inspecting checked bags at Washington-Dulles International Airport. While on duty, DeWeese stole items and valuables from passengers’ luggage, including electronics, jewelry and currency. The defendant transported the stolen items from the airport to his home in Maryland. DeWeese is no longer a TSA employee.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Peter Neffenger, Administrator of the Transportation Security Administration; 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. The case was investigated by the Internal Affairs Division of TSA’s Office of Inspection, FBI’s Washington Field Office, and the Metropolitan Washington Airports Authority. Assistant U.S. Attorney Kimberly R. Pedersen and Special Assistant U.S. Attorney William Glaser 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-145.
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Ashburn Man Sentenced for Identity Theft and Filing False Tax ReturnsRead the Press Release
ALEXANDRIA, Va. – Kouame Innocent Tanoh, 53, of Ashburn, was sentenced today to 54 months in prison for wire fraud and aggravated identity theft, followed by three years of supervised release. The defendant also was ordered to pay $671,760 in restitution and $651,769 in a forfeiture money judgment.
Tanoh pleaded guilty on April 24, 2015. According to court documents, from around April 2008 through February 2015, Tanoh obtained individuals’ names and personal identifying information, including their Social Security numbers and dates of birth. Tanoh acquired some of this information by holding himself out as being a legitimate tax return preparer, through a Virginia company called Alpha and Omega Financial Services. Some of the individuals who provided their personal information to Tanoh were clients of this business. Tanoh would then use their names and personal identifying information for several different purposes, including the preparation and filing of fraudulent federal and state tax returns that made false claims for tax refunds. To increase the amount of the refund requested by the fraudulent returns, Tanoh would add items to the returns, including false dependents, false businesses on the taxpayer’s Schedule C, false education expenses, and false moving expenses. The actual loss to the IRS and state departments of revenue as a result of the returns prepared and filed by Tanoh was over $650,000.
In addition to filing false tax returns, Tanoh also used other people’s identities, in part because he had no legal status to work or remain in the United States. From at least 2009 through 2015, Tanoh used the names and personal identifying information of at least eight individuals to seek and obtain employment, housing, and other items of value, such as bank accounts. To facilitate his use of these stolen identities, Tanoh would obtain false means of identification in the victims’ names, including driver’s licenses and Social Security cards.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Thomas Jankowski, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI); Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington; David G. Bowers, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; John Phillips, Assistant Inspector General for Investigations, Department of the Treasury, Office of the Inspector General; and Michael McGill, Special Agent in Charge, Philadelphia Field Division of the Inspector General’s Office of the Social Security Administration, made the announcement after sentencing by U.S. District Judge T.S. Ellis, III. Assistant U.S. Attorney Katherine L. Wong 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. 1:15-cr-99.
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Richmond Man Sentenced to 15 Years in Prison for Home Invasion and Convenience Store RobberiesRead the Press Release
RICHMOND, Va. – Spencer Harris, 31, of Richmond, was sentenced today to 188 months in prison for two counts of interference with commerce by robbery. Harris was ordered by the court to pay $2,600 in restitution to the victims of the crimes.
Harris pleaded guilty on July 2, 2015. According to court documents, Harris committed two separate robberies over the span of ten days. During the first robbery committed on Nov. 13, 2014, Harris and an accomplice entered the home of a handicapped victim, assaulted him, and stole multiple items, to include $2000, prescription medication, and an antique firearm. Harris and the accomplice targeted the victim because they had prior knowledge he kept controlled substances and illegal drug proceeds at his residence. Before leaving the robbery scene, another victim arrived at the residence and was also assaulted by Harris and his accomplice. This second victim had an additional amount of cash and his car keys taken from his person. Harris and his accomplice fled in the second victim’s vehicle.
On Nov. 23, 2014, Harris and his accomplice committed an armed robbery at the Woods Edge Road Exxon. Upon being dropped off by his accomplice, Harris entered the store armed with an antique firearm and demanded money. After a brief struggle over the weapon, Harris obtained approximately $300 and fled the scene. In leaving the scene, Harris and his accomplice engaged in a high-speed pursuit with police. The robbers were apprehended several weeks later.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Charles E. Smith, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by U.S. District Judge Henry E. Hudson. Assistant U.S. Attorney Erik S. Siebert is prosecuting the case. The Richmond Police Department and Chesterfield County Police Department assisted in the investigation of this 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-84.
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North Dakota Man Pleads Guilty to $2 Million Government Contract SchemeRead the Press Release
ALEXANDRIA, Va. – Jonathan Apple, 35, of Williston, North Dakota, pleaded guilty today to one count of conspiracy to commit wire fraud for his role in the receipt of $2 million in micro-dairy contracts from the U.S. government for use in Iraq.
According to the statement of facts filed along with the plea agreement, K.A, a U.S. government employee, helped to steer the sole-sourcing of $2 million in micro-dairy contracts to a company in which his son, Jonathan Apple, owned a 50 percent interest. However, Jonathan Apple and his partner had no technical experience in the industry. Jonathan Apple, his partner, and K.A. conspired to use K.A.’s official position to obtain non-public information in order to fraudulently win and administer government contracts. The conspirators further provided false information to, and concealed material details from, the U.S. government.
According to court records, K.A. provided templates and technical specifications used in the proposal submitted by Jonathan Apple and his partner to the U.S. government. In addition, Jonathan Apple caused false and misleading statements to be made to the U.S. government regarding his experience, ownership interest, and the status of the projects. Jonathan Apple received approximately $230,000 of profit from the fraudulently awarded contracts. When federal law enforcement agents confronted Apple about the scheme, he made false statements about his role, including that his father had no involvement in government contracting.
Apple faces a maximum penalty of five years in prison when he is sentenced on Feb. 26, 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; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; Frank Robey, Director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU); and Robert E. Craig, Special Agent in Charge for the Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office, made the announcement after the plea was accepted by U.S. District Judge T.S. Ellis, III. Assistant U.S. Attorneys Uzo Asonye and Katherine Wong 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-313.
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Norfolk Man Sentenced to 18 Years in Prison for Tax Fraud SchemeRead the Press Release
NORFOLK, Va. – Ronald Chisholm, 53, of Norfolk, was sentenced today to 218 months in prison, followed by 3 years of supervised release for his convictions on 19 counts of conspiracy, mail fraud, and aggravated identity theft in connection with a scheme to defraud the IRS.
Chisholm was found guilty by a federal jury on July 28, 2015. According to court records and evidence presented at trial, Chisholm’s scheme was discovered in 2013 after a local check cashing business noticed one of its employees had cashed over $2 million in U.S. Treasury checks. The employee of the check cashing business identified Ronald Chisholm as the person who paid her $200 per check to cash the treasury checks in violation of the company’s policies. A subsequent IRS investigation determined that Chisholm, along with unidentified co-conspirators, stole the personal identifying information of numerous people and filed at least 698 fraudulent income tax returns. As a result of these false returns, Chisholm and his co-conspirators received a total of $2.2 million in fraudulent income tax refunds.
Chisholm’s co-conspirators have both already pleaded guilty. Tanya Evans, the employee of the check cashing business, was sentenced to 87 months and Mark J. Jones, Sr., will be sentenced on Nov. 16, 2015 and faces a sentence of 87-102 months.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Thomas J. Kelly, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation, made the announcement after sentencing by Senior U.S. District Judge Robert G. Doumar. Assistant U.S. Attorney Joseph L. 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-132.
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Heroin and Cocaine Dealer Sentenced to 18 1/2 Years in PrisonRead the Press Release
NORFOLK, Va. – Allen Andre Brown, 36, of Portsmouth, was sentenced today to 222 months in prison for conspiracy to distribute cocaine and heroin. In connection with this conviction, Brown forfeited $3,365 in U.S. Currency, a para-ordnance .45 caliber semi-automatic pistol, ammunition, and is subject to a monetary judgment of $555,850.
Brown pleaded guilty on May 20, 2015. According to court documents, Brown manufactured, distributed and possessed in excess of 13 kilograms of cocaine and 478 grams of heroin from approximately November 2013 to November 2014. After an investigation into Brown’s drug conspiracy, and a controlled purchase, a search warrant was executed at Brown’s Portsmouth residence. During the execution of the warrant, officers recovered 181 grams of heroin, 37 grams of cocaine, a digital scale, a security camera, thousands of dollars in U.S. currency, a .45 caliber semi-automatic pistol, and ammunition. Brown admitted to profiting in excess of $5,000 per kilogram of cocaine and the approximate street value of the drugs he sold throughout the conspiracy was in excess of a half a million dollars.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; and Karl C. Colder, Special Agent in Charge for Drug Enforcement Administration’s (DEA) Washington Office, made the announcement after sentencing by U.S. District Judge Mark S. Davis. Special Assistant U.S. Attorney John F. Butler and Assistant U.S. Attorney Joseph E. DePadilla 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-54.
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Frederick Man Pleads Guilty to Fire Bombing of Loudoun County Government BuildingRead the Press Release
ALEXANDRIA, Va. – Jonathan Ernesto Godoy, 25, of Frederick, Maryland, pleaded guilty today to charges relating to a November 2012 arson at the Loudoun County Department of Community Corrections building.
According to court documents and court proceedings, in the fall of 2012, Godoy was on supervised probation in Loudoun County stemming from possession of narcotics charges. In danger of violating his conditions of probation due to missed appointments, adulterated urine samples, and positive drug tests, Godoy, along with a co-conspirator, made two destructive devices using glass bottles, gasoline, and scraps of cotton t-shirt, commonly known as “Molotov cocktails,” and attempted to throw the devices into Godoy’s probation officer’s window.
According to court documents, at least one of the devices exploded inside of the Loudoun County Department of Corrections building and caused severe fire damage. The fire, which occurred during the early morning hours of Nov. 14, 2012, caused such destruction that the occupants of the Corrections building had to move to an alternate location. The fire caused over $300,000 in property damage and relocation costs.
In July 2014, Godoy was served with four felony state warrants related to the fire at the probation office, and he was incarcerated at the Loudoun County Adult Detention Center. While there, in a series of telephone calls and letters, Godoy expressed his belief that if his friend and a Loudoun County Assistant Fire Marshal, who was involved in the investigation, were eliminated as witnesses, then the criminal case against him would collapse. Thereafter, Godoy solicited a fellow inmate to murder the two. Unbeknownst to Godoy, however, the fellow inmate was cooperating with law enforcement and kept them informed of Godoy’s plot.
Godoy was indicted by a federal grand jury on Sept. 8, 2015, and he pleaded guilty to one count of conducting an arson affecting interstate commerce and one count of using a fire or explosive device in the commission of a felony. Godoy faces a mandatory minimum term of 15 years in prison and a maximum penalty of 20 years in prison when he is sentenced on Feb. 19, 2016.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Linda Hale, Chief Fire Marshal, Loudoun County Department of Fire, Rescue, and Emergency Management; and Charles E. Smith, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after the plea was accepted by U.S. District Judge Anthony J. Trenga. Assistant U.S. Attorneys Michael E. Rich and William M. Sloan 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-234.
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Straw Purchaser of Gun Used in Multiple D.C. Shootings SentencedRead the Press Release
ALEXANDRIA, Va. – Lawrence Monte Morgan, 24, of Waldorf, Maryland, was sentenced today to one year and one day in prison, followed by two years of supervised release, for his role in the illegal purchase of 12 guns, including one gun that was used in multiple shootings in Washington, D.C.
“Prosecuting straw purchasers is essential because of the critical role these purchasers play in enabling the unlawful possession and use of guns,” said U.S. Attorney Dana J. Boente. “Prohibited individuals who cannot buy guns, including convicted felons, rely on staw purchasers to buy the guns for them. Often times the guns then end up in the hands of dangerous individuals and are used in other crimes, as in this case.”
“Illegal firearms trafficking is one of the most dangerous activities confronting our nation today,” said Charles E. Smith, Special Agent in Charge of the Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division. “It is through the bravery, skill, and dedication of our agents that these traffickers are brought to justice and the illegal firearms trade currently plaguing the DC Metro region is abated.”
Morgan pleaded guilty on Aug. 3, 2015. According to court documents, during August 2014, Morgan, along with co-defendant Jamal Baker, purchased 12 guns from various federal firearms dealers within the Eastern District of Virginia. At the time of each of these purchases, Baker completed a firearms transaction form that asked, “Are you the actual transferee/buyer of the firearm(s)?” Baker knowingly lied when he answered “Yes” on the form, because he was unlawfully acquiring the guns for others, not for himself. Morgan aided and abetted Baker’s false statements by, among other things, accompanying Baker to firearms dealers to help select guns for purchase, reimbursing Baker for the purchases, finding buyers for and reselling the guns, and providing Baker with a share of the profits from the resale of the guns to other buyers. Law enforcement has since recovered several of the guns that Morgan and Baker purchased in August 2014, including one gun that was used in multiple shootings in Washington, D.C.
Baker was sentenced to one year and one day in prison on Oct. 15, 2015.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Charles E. Smith, Special Agent in Charge of the Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by U.S. District Judge Gerald Bruce Lee. Assistant U.S. Attorney Tobias Tobler 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-219.
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Norfolk Man Pleads Guilty to Felon in Possession of Ammunition ChargeRead the Press Release
NORFOLK, Va. – Wesley Paul Hadsell, 37, of Norfolk, pleaded guilty today to the charge of being a felon in possession of ammunition.
In a statement of facts filed with the plea agreement, Hadsell admitted that on Dec. 23, 2013, he purchased ammunition at Bob’s Gun Shop in Norfolk. He further admitted that on Dec. 31, 2013, he took that ammunition to a gun range in Chesapeake where he and other individuals utilized some of the ammunition and Hadsell retained possession of approximately 80 rounds of ammunition after the trip to the range. Hadsell also admitted to several prior felony convictions.
Hadsell will be sentenced on March 18, 2016. At sentencing, the Court will determine whether the nature of Hadsell’s prior felony convictions renders him subject to the enhanced penalties pursuant to the Armed Career Criminal Act. If the Court determines that Hadsell is subject to those enhanced penalties, Hadsell faces a minimum penalty of 15 years in prison and a maximum penalty of life in prison. If the Court determines that Hadsell does not meet the criteria of the Armed Career Criminal Act, Hadsell faces a maximum penalty of 10 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; Charles E. Smith, Special Agent in Charge of the Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, and Michael Goldsmith, Chief of Norfolk Police, made the announcement after the plea was accepted by U.S. District Judge Arenda L. Wright-Allen. Assistant U.S. Attorney Benjamin L. Hatch 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. 2:15-cr-116.
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Miami Beach Man Sentenced to 7 Years for Financial Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – George Kalivretenos, 59, of Miami Beach, Florida, was sentenced today to 84 months in prison for a wire fraud and money laundering scheme in which he defrauded borrowers of approximately $5.6 million. Kalivretenos was also ordered to pay $4.18 million in restitution as part of his sentence.
Kalivrentenos pleaded guilty on Aug. 13, 2015. According to court documents, Kalivretenos operated and controlled Jasmine Capital and Jasmine Resources Capital Group, which were lending entities. He also owned and controlled two escrow companies, Escrow Services, LLC, and Escrow Title Services, LLC. Kalivretenos promised to lend companies and individuals millions of dollars after they sent a deposit of 10 percent of the loan amount to a third party escrow company. However, Kalivretenos concealed his control over the escrow company from borrowers. Once the escrow company received the borrowers’ deposits, Kalivretenos spent borrowers’ funds on personal expenses, including two Rolls Royces, a penthouse condominium rented at $18,000 per month, and hotel stays at the Ritz Carlton and Crowne Plaza. He also transferred substantial funds to overseas accounts.
In order to cover-up the fraud scheme, Kalivretenos made false representations regarding the status, use of, and reasons for not disbursing escrowed funds to borrowers and law enforcement. For example, on Aug. 20, 2013, Kalivretenos, pretending to be a woman employed at an escrow company, placed a telephone call to a FBI special agent and falsely claimed the escrow company still held a borrower’s escrow deposit. In order to corroborate his lie about the status of the escrow funds, Kalivretenos manufactured a fake bank statement and sent it to the FBI.
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. 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-73.
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