Eastern District of Virginia
Press releases recorded for this federal judicial district.
Former Financial Assistant of Architectural Firm Sentenced for ForgeryRead the Press Release
NORFOLK, Va. – Katherine Albert-McNaughton, 37, of Virginia Beach, was sentenced today to 30 months in prison, followed by 3 years of supervised release, for forging securities and engaging in monetary transactions in criminally derived property. She was also ordered to make restitution in the amount of $470,352.39.
Albert-McNaughton pleaded guilty on May 12, 2015. According to court documents, Albert-McNaughton was employed as a financial assistant by HBA Architecture & Interior Design, Inc., a business located in Virginia Beach. Between October 2011 and June 2014, Albert-McNaughton forged the signature of a principal of HBA Architecture & Interior Design, Inc. on 83 company checks, totaling $469,831.89. She deposited all of the forged checks into bank accounts that she maintained and used the money for her own personal benefit, including vacations, shopping, plane tickets, photography, and the purchase of vehicles, concert and professional football tickets.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Douglas F. Mease, Special Agent in Charge of the U.S. Secret Service’s Richmond Field Office, made the announcement after sentencing by U.S. District Judge Arenda L. Wright-Allen. Assistant U.S. Attorney Alan M. Salsbury 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. 2:15cr31.
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Brothers Sentenced for Leading Bank Fraud and Identity Theft SchemeRead the Press Release
ALEXANDRIA, Va. – Ray Ekobena, 27, of Alexandria, and his brother, Stefan Ekobena, 24, of Atlanta, were sentenced today for leading a five-year check fraud and identity theft conspiracy. Co-conspirator Rodney Hardy, 25, of Hyattsville, Maryland, was also sentenced today for his role in the scheme.
“Ekobena ran a check fraud scheme that lasted for five years,” said U.S. Attorney Dana J. Boente. “Ever the entrepreneur, Ekobena launched additional schemes at the same time, including his elaborate plot to steal hundreds of thousands of dollars from a children’s hospital. Along the way he and his crew victimized hundreds of individuals, charities, small businesses, and financial institutions. I want to commend our prosecutors and investigative partners for a job well done in bringing these criminals to justice.”
According to statements of fact filed with the plea agreements, Ray Ekobena and his younger brother, Stefan Ekobena, printed fraudulent checks using victims’ bank account information. The Ekobenas’ obtained this information by enlisting bank tellers and other insiders who had access to sensitive personal information through their employment. Co-conspirators such as Rodney Hardy, Jerome Johnson, Gani Cole, Deallto Davis and Alan Lamin furthered the conspiracy by depositing the fraudulent checks into bank accounts under false names and withdrawing the resulting funds before the banks discovered the fraud. Ray Ekobena also obtained loans in the names of his identity theft victims to buy luxury vehicles including a Bentley, Mercedes-Benz, Porsche, Audi, and a tractor-trailer.
“The Ekobena brothers and their co-conspirators targeted individuals, charities, and businesses in a criminal scheme to fraudulently obtain and exploit personal information for their own selfish financial gain,” said Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office. “The FBI, together with our local, state, and federal law enforcement partners, will continue to relentlessly pursue and bring to justice those who engage in identity theft and victimize innocent people, financially or otherwise.”
In total, the conspiracies victimized over 200 individuals and caused an actual loss amount of $712,231, and an intended loss amount of over $1.25 million. Victims include well-known small businesses and charities, including the Leukemia & Lymphoma Society and the Children’s National Medical Center.
“The suspects in this scheme fraudulently used the mail to prey upon innocent victims and charities,” said David G. Bowers, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service (USPIS). “Postal Inspectors, with the support of partnering federal and local law enforcement agencies, worked aggressively to dismantle this scheme and bring these individuals to justice.”
Name
Age
Hometown
Sentencing Details
Ray Ekobena
27
Alexandria
Sentenced today to 104 months in prison followed by three years of supervised release. Ordered to forfeit $712,231.22 and pay that amount in restitution.
Stefan Ekobena
24
Atlanta, Georgia
Sentenced today to 66 months in prison followed by three years of supervised release. Ordered to forfeit $199,808.29 and pay that amount in restitution.
Rodney Hardy
25
Hyattsville, Maryland
Sentenced today to 30 months in prison followed by three years of supervised release. Ordered to forfeit $20,618.41 and pay that amount in restitution.
Jerome Johnson
32
Washington, D.C.
Sentencing scheduled for Dec. 4, 2015
Deallto Davis
20
Washington, D.C.
Sentencing scheduled for Dec. 4, 2015
Gani Cole
27
Atlanta, Georgia
Sentencing scheduled for
Jan. 22, 2015
Alan Lamin
25
Washington, D.C.
Sentenced on July 8, 2015 to 54 months in prison. Ordered to forfeit $124,640.87 and pay that amount in restitution.
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; David G. Bowers, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service (USPIS); and Colonel Edwin C. Roessler Jr., Chief of the Fairfax County Police Department, made the announcement after sentencing by U.S. District Judge Claude M. Hilton. Assistant U.S. Attorney Kellen S. Dwyer and Special Assistant U.S. Attorney Joseph V. Longobardo prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-180.
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President and CEO of Wilson Capital Group Sentenced in Financial Fraud CaseRead the Press Release
NORFOLK, Va. – Ayanna N. James, 40, of Virginia Beach, was sentenced today to 84 months in prison, followed by three years of supervised release for mail fraud and unlawful monetary transactions. James was also ordered to pay $4,592,300 in restitution to her victims.
James pleaded guilty on May 15, 2015. According to a statement of facts filed with the plea agreement, James was the President and CEO of Wilson Capital Group, Inc. which was a private equity firm that she claimed controlled billions of dollars in investor participation. Claiming that she controlled a legitimate company, James, and other known conspirators, solicited funds from clients by promising to secure capital and other financing through purported “Standby Letters of Credit” and other fraudulent means. James never invested in anything and instead immediately converted the funds entrusted to her company to her own personal use to fund her extravagant lifestyle. For example, James used $34,000 of fraudulent proceeds to purchase season tickets to the Orlando Magic, and hundreds of thousands of dollars to travel overseas, to build a custom home, for living expenses, to purchase jewelry, to support her extended family, and to purchase a 2007 Bentley automobile. As a result of her fraudulent conduct, multiple victims suffered actual losses of over $4.5 million.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office; Thomas Jankowski, Special Agent in Charge, IRS-Criminal Investigations, Washington, D.C. Field Office, and David Bowers, Inspector in Charge of the Washington Division of the United States Postal Inspection Service, made the announcement after sentencing by Chief U.S. District Judge Rebecca Beach Smith.
This case was investigated by the Tidewater Complex Financial Crimes Task Force. Members of the Task Force include the FBI, IRS, and the Postal Inspection Service. Assistant U.S. Attorney Melissa E. O’Boyle 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.2:15cr55.
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Norfolk Man Sentenced on Drug Conspiracy and Gun ChargesRead the Press Release
NORFOLK, Va. – Isaac Deleon Nevares, 51, of Norfolk, was sentenced today to 216 months in prison for conspiracy to manufacture, distribute, and possess with intent to distribute methamphetamine, cocaine, and crack cocaine, and for possession and carrying firearms in furtherance of a drug trafficking crime.
Nevares pleaded guilty on June 5, 2015. According to court documents, ATF agents conducted a series of controlled purchases of cocaine, “crack” cocaine, and handguns from Nevares’s co-defendant Anthony Tillman Quinones, whom Nevares supplied with drugs. After executing search warrants on multiple residences involved in the drug-trafficking conspiracy, agents were led to an apartment Nevares used to store drugs. At the apartment, agents recovered over one kilogram of high-purity methamphetamine, 400 grams of cocaine, 270 grams of crack cocaine, two handguns, and a semiautomatic rifle. Nevares was arrested later that day in possession of another handgun.
Tillman Quinones, who was indicted with Nevares, pleaded guilty to drug trafficking conspiracy and firearms charges on May 19, 2015, and was sentenced to 156 months in prison on Oct. 16, 2015.
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 Chief U.S. District Judge Rebecca Beach Smith. Assistant U.S. Attorney 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-38.
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Leader of Massive Heroin Trafficking Group Sentenced to 30 Years in PrisonRead the Press Release
NORFOLK, Va. – Alonzo Outten, 35, of Portsmouth, was sentenced today to 360 months in prison for his leadership and 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.
Outten, along with six of his co-conspirators, were indicted by a grand jury on July 8, 2015. 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. On July 30, 2015, Outten, along with several of his co-conspirators, pleaded guilty for conspiracy to manufacture, distribute, and possess with intent to distribute in excess of one kilogram of heroin.
According to the statement of facts, Outten was the leader of an organization from November 2013 to July 2015 that managed the manufacturing and distribution of between 30 and 90 kilograms of heroin with an estimated street value between $1.5 and $4.5 million dollars. Outten managed six mid-level drug operatives who in turn managed approximately a dozen other individuals that either directly assisted or facilitated the trafficking and distribution of heroin.
Outten supplied kilogram amounts of heroin to at least two Bloods gang sets: the Imperial Gangsta Bloods led by “Godfather” Chris Smith, aka Killa, who pleaded guilty on July 28, 2015; and the Gorilla Mafia Piru gang led by Theodore Vann, aka Flatline, who pleaded guilty on June 25, 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 the Naval Criminal Investigative Service. Virginia Assistant Attorney General and 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).
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Virginia Beach Man Pleads Guilty in Child Pornography CaseRead the Press Release
NORFOLK, Va. – Richard Midgett, 50, of Virginia Beach, pleaded guilty today to a charge of distribution of child pornography.
According to a statement of facts filed with the plea agreement, on Nov. 10, 2014, Midgett used a peer-to-peer file-sharing network to distribute a computer file depicting child pornography. Later, after his computer equipment was seized during the execution of a search warrant, a forensic analysis of Midgett’s computer showed that he possessed approximately 33,000 images and 1,817 videos of child pornography.
Midgett was indicted by a federal grand jury on Sept. 8, 2015. Midgett faces a maximum penalty of 20 years in prison when sentenced on Feb. 8, 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 Homeland Security Investigations Washington, D.C., made the announcement after the plea was accepted by Senior U.S. District Judge Robert G. Doumar. Assistant U.S. Attorney Randy Stoker is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15cr114.
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Norfolk Man Sentenced for Drug and Gun CrimesRead the Press Release
NORFOLK, Va. – Clinton Martez Alston, 27, of Norfolk, was sentenced today to 200 months in prison for possession with intent to distribute heroin and for possessing a gun as a convicted felon.
Alston pleaded guilty on June 30, 2015. According to court documents, on Aug. 5, 2014, Norfolk Police arrested Alston as he arrived at a location in Norfolk to sell heroin to a confidential informant. Norfolk Police searched Alston and the vehicle he was in and found a .45 caliber handgun, 87 capsules of heroin, and small amount cocaine and crack cocaine. Alston has prior felony convictions for robbery and carjacking.
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 Robert G. Doumar. 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. 2:14-cr-179.
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North Carolina Man Sentenced for Transporting Women for ProstitutionRead the Press Release
NORFOLK, Va. – Dana O. Knight, 33, of Gates, North Carolina, was sentenced today to 240 months in prison and lifetime supervised release for transporting multiple women to Virginia for prostitution.
Knight pleaded guilty on July 15, 2015. Court documents reflect that, over the course of one year, Knight transported at least three women to Virginia and other locations for purposes of furthering his prostitution business. One victim was transported by Knight to locations in North Carolina, New York, Pennsylvania, Washington, D.C., and elsewhere before ultimately being brought to Virginia. Knight used various internet resources to advertise the services of the women who worked for him. Knight was physically violent towards his victims and beat one woman so badly that she was hospitalized on multiple occasions. In November 2014, Knight was arrested in Virginia Beach after one of his victims called 911 seeking emergency assistance. Prior to his arrest on these charges, Knight had been involved in the prostitution business for nearly nine years, making approximately $20,000 per month.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office; and James A. Cervera, Virginia Beach Chief of Police, made the announcement after sentencing by U.S. District Judge Arenda L. Wright Allen. Assistant U.S. Attorney V. Kathleen Dougherty and Elizabeth M. Yusi prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15cr26.
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Godfather of Portsmouth Bloods Gang Sentenced to Life in PrisonRead the Press Release
NORFOLK, Va. – Christopher Smith, aka Killa, 32, of Portsmouth, was sentenced today to life in prison for conspiring to manufacture, distribute, and possess with intent to distribute over one kilogram of heroin and for possessing a firearm in furtherance of that conspiracy.
Also sentenced today were co-conspirators Howard Foust (223 months), Dwayne Banks (135 months), and Ricky Jackson (280 months).
Smith, the former “Godfather” of the Portsmouth-based Imperial Gangsta Bloods, a set affiliated with the United Blood Nation, pleaded guilty on July 28, 2015. According to court documents, from early 2014 until September 2014, Smith and others working at his direction traveled to New York City, where they bought bulk quantities of heroin from Imperial Gangsta Bloods member Jackson, aka Sosa. The heroin was transported from New York City back to the Hampton Roads area where it was cut and prepared for street-level distribution by other members of the gang, including high-ranking members Junious Whitaker, aka “Redd,” and Foust, aka “Lil’ Howard” (Case details on Jackson, Whitaker, Foust and Jermarrieo Stigger are in the table presented below).
In August 2014, Smith and other members of the gang were involved a series of violent altercations with twin brothers Jason and Jeremy Saunders, who ran a separate heroin trafficking organization in Portsmouth. On Aug. 18, 2014, a member of the Imperial Gangsta Bloods shot Jeremy Saunders multiple times. Saunders survived the shooting. Days later, Smith, Whitaker and another IGB gang member were involved in a separate shooting incident with the Saunders brothers (both of whom were later convicted in a separate federal drug prosecution). Several weeks after the second August shooting, Smith, Foust and two other individuals were stopped on the Eastern Shore of Virginia on their way back from New York City, where they had purchased approximately 275 grams of heroin.
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 John A. Gibney, Jr. Assistant U.S. Attorneys Andrew Bosse and Joseph DePadilla prosecuted the case.
This case was investigated by the FBI’s Norfolk field office in conjunction with the ATF, the Portsmouth, Virginia Beach, and Norfolk Police Departments, and the Virginia State Police. This investigation was part of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal, multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15-cr-7.
Name
Age, Hometown
Charges
Status
Christopher Smith
32, Portsmouth
Conspiring to manufacture, distribute, and possess with intent to distribute over one kilogram of heroin; Possession of Firearms in Furtherance of a Drug Trafficking Crime
Pleaded guilty July 28. Sentenced to life in prison today.
Ricky Jackson
37, Hempstead, New York
Conspiracy to Distribute Narcotics
Pleaded guilty May 28, 2015. Sentenced to 280 months in prison today.
Junious Whitaker
28, Portsmouth
Conspiracy to Distribute Narcotics; Possession of Firearms in Furtherance of a Drug Trafficking Crime
Pleaded guilty March 18, 2015. Sentenced June 23, 2015 to 300 months in prison.
Howard Foust
31, Portsmouth
Conspiracy to Distribute Narcotics
Pleaded guilty Feb. 2, 2015. Sentenced to 223 months in prison today.
Jermarrieo Stigger
30, Virginia Beach
Conspiracy to Distribute Narcotics; Possession of Firearms in Furtherance of a Drug Trafficking Crime
Pleaded guilty on June 15. Sentenced Sept. 24, 2015 to 420 months in prison.
Dwayne Banks
XX, Portsmouth
Conspiracy to Distribute Narcotics
Pleaded guilty on July 30. Sentenced to 135 months in prison today.
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Former Senate Staffer Sentenced to 3 Years for Defrauding Three WomenRead the Press Release
ALEXANDRIA, Va. – Robert Lee Foster, a former staff member of the U.S. Senate Committee on Commerce, Science, and Transportation, was sentenced today to 38 months in prison for a wire fraud scheme in which he defrauded three women of approximately $500,000. Foster was also ordered to forfeit $499,622.54 and pay $503,003.37 in restitution as part of his sentence.
Foster, 65, formerly of Falls Church, pleaded guilty on July 31, 2015. According to court documents, between 2008 and May 2015, Foster devised a scheme to fraudulently obtain approximately $500,000 from three women, whom he targeted because of their age, health, marital or family status, and other circumstances. To perpetuate the scheme, Foster gained the victims’ trust and confidence, after which he made various false statements to the victims to convince them to send him money. Among other things, Foster told his victims he needed to borrow money to pay for litigation costs, business expenses, and foreign travel, and that he would repay them from large sums of money he claimed he was about to receive. Foster’s statements were lies: he had no such costs or expenses, he did not even have a valid passport for much of the relevant period, and he was never “about” to receive any large sum of money. Foster spent the money he obtained from the three women for his own personal use and benefit, including more than $44,000 on golf-related expenses and tens of thousands in dining and clothing expenses. Foster received at least 10 separate wire transfers totaling $9,446.02 from Person A, a 61 year-old woman; 159 separate wire transfers totaling $461,676.52 from Person B, a 75 year-old woman; and 19 separate wire transfers totaling $28,500 from Person C, a 77 year-old woman.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Assistant Attorney General Leslie Caldwell 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 sentencing by U.S. District Judge T. S. Ellis, III. Assistant U.S. Attorneys Jamar Walker and Ryan Faulconer, and Trial Attorneys Peter Halpern and Kevin Driscoll of the Public Integrity Section in the Justice Department’s Criminal Division 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-148.
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Final Defendant Sentenced in State Department Contracting Fraud Scheme and Contractor Cover-UpRead the Press Release
ALEXANDRIA, Va. – Marvin Hulsey, 52, of Stafford, was sentenced today to one year and one day in prison, and two years of supervised release for conspiracy to commit wire fraud.
According to court documents, Hulsey, who was employed as a program manager for a government contractor, admitted to conspiring with Tony Chandler, 69, of Severn, Maryland, an employee of the State Department, to submit false invoices to the State Department in order to conceal unallowable costs for nutritional supplements purchased by employees under Hulsey’s supervision. As part of the scheme, Hulsey caused the employees to be reimbursed by his employer for the nutritional supplement purchases, and then caused false invoices to be made and submitted to the State Department for the cost of the nutritional supplements. Chandler, as an authorized distributor of the nutritional supplements for a multi-level marketing company, earned commissions in excess of $25,000 from the purchases made by Hulsey’s employees. Despite knowing that he was personally profiting from the sales of the nutritional supplements, Chandler, in his official capacity as an employee of the State Department, approved the majority of the false invoices. The false invoices submitted to the State Department as part of the scheme totaled more than $170,000.
In a related case, Curtis L. Wrenn, Jr., 60, of Triangle, pleaded guilty to making a false statement to the State Department by concealing that an internal investigation conducted by the contractor discovered credible information of fraud involving Chandler and Hulsey. Wrenn as president of the State Department contractor employing Hulsey, learned of Hulsey’s submission of false invoices to the State Department and of Chandler’s role in the scheme. Wrenn knew that he had a responsibility under the Federal Acquisition Regulation to timely disclose to the government credible evidence of fraud, but instead omitted facts related to the fraud from the final letter delivered to the State Department. After submitting the altered letter, Wrenn met with Chandler and told him he had “saved his bacon.” Wrenn later wrote in an email that he told Chandler “to get this resolved with minimal questions or we throw him under the bus.”
Hulsey pleaded guilty on July 24, 2015. In court documents filed on Oct. 5, 2015, Hulsey admitted that he engaged in a second fraud scheme in which he submitted false and inflated claims to the State Department related to a business owned by his wife. This second fraud scheme caused an additional loss of approximately $140,000.
Chandler and Wrenn both pleaded guilty on June 12, 2015, and were both sentenced on Sept. 18, 2015. Chandler was sentenced to six months in prison, while Wrenn was sentenced to one year of probation.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Steve A. Linick, Inspector General for the U.S. Department of State and Broadcasting Board of Governors; 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 Claud M. Hilton. Special Assistant U.S. Attorney Brian D. Harrison and Assistant U.S. Attorney Grace L. Hill prosecuted the case.
This case was investigated by the U.S. Department of State, Office of Inspector General (DOS-OIG) and the FBI’s Washington Field Office. Substantial assistance was provided by the Criminal Analysis Branch of the DOS-OIG
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-137.
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Chesapeake Man Sentenced to 30 Years for Role in Heroin Overdose DeathRead the Press Release
NEWPORT NEWS, Va. – Ronnie A. Brickhouse, 36, of Chesapeake, was sentenced today to 360 months in prison for his role in a conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin, and, for his distribution of heroin which resulted in the death of Robert Joseph Mills in February 2013.
Brickhouse, who pleaded guilty on Feb. 19, 2015, was also ordered to pay $2 million in restitution and $5,000 in funeral expenses. According to court documents, from approximately June 2010 until October 2014, Brickhouse was the leader of a large scale heroin conspiracy that supplied major drug traffickers with multiple kilogram quantities of heroin in the Eastern District of Virginia. On Feb. 1, 2013, Brickhouse provided heroin to a conspirator who then provided it to Mills. Mills injected the heroin at his parent’s house in York County and was found dead shortly thereafter.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Gregory J. Cherundolo, Assistant Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Richmond Field Division; and Richard W. Meyers, Chief of Newport News Police, made the announcement after sentencing by U.S. District Judge Arenda L. Wright Allen. Assistant U.S. Attorneys Robert E. Bradenham, II, and Kevin Hudson, and Trial Attorney Jennifer Sykes of the Criminal Division’s Organized Crime and Gang Section prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:14cr60.
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Former Las Vegas Couple Sentenced to Prison for Defrauding over 400 Vulnerable Homeowners in $3.8 Million Mortgage ScamRead the Press Release
ALEXANDRIA, Va. – Kristen Michelle Ayala, aka Amber Lynch, aka Olivia Benet, aka Grace Williams, 30, and Joshua Manuel Sanchez, aka Nelson Cruz, aka Chris Ward, aka Daniel Mora, 34, both formerly of Las Vegas, were sentenced today for conspiracy to commit wire fraud for their role in a $3.8 million dollar mortgage modification scam.
Ayala was sentenced to 135 months in prison, while Sanchez was sentenced to 151 months in prison. Both defendants were also sentenced to three years of supervised release and ordered to pay full restitution to the victims of their crime.
“This nefarious crime, rooted in dishonesty and greed, ruined the lives of the victims while simultaneously enriching the lives of Ayala and Sanchez,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “Their deceitful actions targeted extremely vulnerable individuals, causing trauma and stress in their lives which led to divorce, severe health issues, and extreme despair to children, parents, combat veterans, and people who were already struggling to make it. I want to thank our prosecutors and the investigative team at SIGTARP for their outstanding work on this case.”
In a statement of facts filed with the plea agreement, from in and around October 2012 through September 2014, Ayala, Sanchez, and others, executed a scheme that deliberately targeted extremely vulnerable individuals who were in dire financial straits, desperate and literally on the verge of losing their homes. Ayala and Sanchez developed fraudulent documents, telephone scripts, and aliases in an effort to defraud the victim homeowners. Their scheme lulled victim homeowners into believing that the defendants were part of the legitimate U.S. Government “Home Affordable Modification Program” (HAMP) by using the Department of Treasury’s seal and other government markings. During the execution of the ruse, Ayala and Sanchez used documents containing fraudulent government seals, made statements regarding modification of the victims’ mortgages through the HAMP program, and the victims’ mortgage payments to their own accounts rather than to the victims’ lenders. The scheme defrauded more than 400 victims and caused losses of over $3.8 million dollars and resulted in many victims losing their homes, despite the victims’ efforts to modify their mortgages and continue to make payments on their loans.
"SIGTARP special agents initiation and investigation of this TARP fraud scheme resulted in the arrest and convictions of Joshua Sanchez and Kristen Ayala for stealing money from over 400 desperate homeowners seeking to modify their mortgage by posing as US government representatives for TARP's housing program HAMP” " said Christy Goldsmith Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP). "Sanchez and Ayala targeted struggling homeowners, used business names such as “Neighborhood Counseling Services of America” and “Residential Community Outreach Services”, and told victims to send three alleged trial modification payments to them, even going so far as using the Treasury Seal on some of the mortgage payment coupons to convince the homeowners that their scheme was legitimate. Sadly, they scammed hundreds of homeowners into believing they were getting help. They made no homeowner’ payments to mortgage lenders and instead stole over $3.8 million from homeowners who were trying to do the right thing to modify their mortgages causing many to lose their homes and devastating their lives. SIGTARP commends U.S. Attorney Boente and the prosecution team for standing united with SIGTARP against crimes related to TARP.”
Ayala and Sanchez were indicted by a federal grand jury on May 1, 2015, and pleaded guilty on Aug. 3, 2015.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Christy Goldsmith Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP), made the announcement after sentencing by U.S. District Judge James C. Cacheris.
This case was investigated by SIGTARP. Assistant U.S. Attorneys Zach Terwilliger and James P. Gillis 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-147.
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Suffolk Heroin Dealer Pleads Guilty to Drug and Gun ChargesRead the Press Release
NORFOLK, Va. – Christopher Salkey, 31, of Suffolk, pleaded guilty today to charges of conspiracy to distribute heroin and possessing a firearm as a convicted felon.
In a statement of facts filed with the plea agreement, in the summer of 2012 up to May 2015, Salkey conspired with his father and two others to distribute heroin in Suffolk and Portsmouth. Each week Salkey (who has a previous conviction for selling narcotics) and his father would receive a significant quantity of heroin to which they would add a cutting agent and then cap it up for distribution. During the course of the conspiracy it is estimated they distributed at least eight kilograms of heroin. On May 20, 2015, the Suffolk Police Department and federal agents from the Drug Enforcement Administration (DEA) executed a search warrant at Salkey’s residence in Suffolk where they recovered a quantity of heroin and packaging material used for distribution. Additionally, agents also discovered a marijuana grow operation with 129 marijuana plants. Law enforcement later learned Salkey had hidden two firearms in the residence, which agents later recovered.
Salkey was charged by criminal complaint on Sept. 18, 2015. He faces a maximum penalty of life in prison and a mandatory minimum sentence of 10 years in prison when sentenced on Feb. 18, 2016. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Karl C. Colder, Special Agent in Charge for the DEA’s Washington Field Division, made the announcement after the plea was accepted by U.S. District Judge Arenda L. Wright Allen. Assistant U.S. Attorneys William D. Muhr and V. Kathleen Dougherty are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15cr135.
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Portsmouth Bloods Gang Associate Sentenced to 3 Years in Heroin CaseRead the Press Release
NORFOLK, Va. – Jeffery R. Henry, 30, of Portsmouth, was sentenced today to 36 months in prison for his role in a conspiracy to distribute and possess with intent to distribute heroin.
Henry was an associate of the Portsmouth based Gorilla Mafia Bloods, a street gang led by Theodore M. Vann, aka Flatline, 32, and Antwane L. Williams, aka Neno, 26. All three men were indicted by a federal grand jury on May 17, 2015. Vann and Williams pleaded guilty in June 2015, while Henry pleaded guilty in July 2015. Williams was sentenced to 10 years in prison on Sept. 24, 2015. Vann is scheduled to be sentenced on Nov. 16, 2015.
According to court documents, Henry distributed heroin and other narcotics in the Ghent area of Norfolk, Portsmouth, and other places throughout the Eastern District of Virginia. Henry also traveled to Richmond, Petersburg, and New Jersey with his co-conspirators on multiple occasions to test the purity of the supply of heroin to ensure that it was a good product for resale.
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 jointly by the FBI’s Norfolk Field Office and the Chesapeake and Portsmouth Police Departments. Virginia Assistant Attorney General and 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-60.
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Norfolk Men Sentenced for Possession with Intent to Distribute Heroin and other NarcoticsRead the Press Release
NORFOLK, Va. – Cornelius J. Gaymon, 35, of Norfolk, a 10-time convicted felon, was sentenced today to 151 months in prison for possession with intent to distribute heroin. Co-conspirator Tedrick O. Speller, 33, of Norfolk, was sentenced to 84 months in prison on Oct. 5, 2015.
Gaymon pleaded guilty on June 24, 2015, and Tedrick Speller pleaded guilty on June 23, 2015. According to court documents, law enforcement officers conducted several undercover purchases of crack cocaine from Speller before executing a search warrant on his residence in the Berkley neighborhood of Norfolk. Nearly 40 officers from Norfolk’s Special Operations Team and Vice and Narcotics division participated in the execution of the warrant and recovered over $32,000 worth of heroin, crack cocaine, cocaine, and marijuana. Officers also seized digital scales, drug packaging materials, several thousand dollars, and five firearms. One firearm was stolen, another had a high capacity extended magazine, and another weapon’s serial number was obliterated. Speller also maintained a storage unit, which contained nearly $50,000. In Gaymon’s room, officers recovered a Black-Bull industrial size, six-ton hydraulic press machine used to “cut” and re-press heroin and other narcotics with cutting agents to expand volume and profitability.
Gaymon, a former Bloods gang member, attempted to escape from the arresting officers twice, once through a second floor window and again while in handcuffs. He had recently been released from a six-year prison term for distributing cocaine.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; and Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen. Chief U.S. District Judge Rebecca Beach Smith sentenced Speller.
This case was investigated by the DEA High Intensity Drug Trafficking Area (HIDTA) Task Force with the assistance of the Norfolk Police Department. Virginia Assistant Attorney General and Special Assistant U.S. Attorney John F. Butler and Assistant U.S. Attorney Andrew C. Bosse prosecuted the case.
A copy of this press release 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-66 (Gaymon) and 2:15-cr-67 (Speller).
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South Carolina Woman Sentenced for Prostituting MinorRead the Press Release
NORFOLK, Va. – Doriean Barberi, 37, of Greenville, South Carolina, was sentenced today to 188 months in prison for transporting a minor across state lines for prostitution purposes.
Barberi pleaded guilty on May 7, 2015. According to court documents, Barberi was first identified by the Virginia Beach Police Department in September 2014 after Barberi had posted advertisements on the Internet for herself and a 17 year old minor offering their sexual services at a local hotel. Upon being interviewed, Barberi and the minor confirmed that they drove into Virginia several days earlier and first worked in Suffolk before moving to Virginia Beach. Barberi set up the appointments for the minor and the minor gave Barberi all of the money she was paid for having sex with customers. Barberi used the money, in part, to promote her aspiring rap music career.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office; and James A. Cervera, Chief of Virginia Beach Police, made the announcement after sentencing by Senior U.S. District Judge Henry Coke Morgan, Jr. Assistant U.S. Attorney Elizabeth M. Yusi prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14-cr-162.
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Richmond Man Pleads Guilty to Drug ChargesRead the Press Release
NEWPORT NEWS, Va. – Michael Newman, 37 of Richmond, pleaded guilty today to charges of conspiring to distribute marijuana and ethylone.
According to a statement of facts filed with the plea agreement, Newman was located at a closed gas station in James City County on May 10, 2015, and found to be in possession of marijuana, ethylone, drug scales and more than $3,000 in cash. The marijuana and ethylone were both intended for distribution.
Newman was indicted by a federal grand jury on Aug. 10, 2015, and faces a maximum penalty of 20 years in prison when he is sentenced on Feb. 25, 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; Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington; David G. Bowers, Acting Inspector in Charge of the U.S. Postal Inspection Services’ Washington Division; and Bradley Rinehimer, Chief of James City County Police, made the announcement after the plea was accepted by U.S. Magistrate Judge Doulas E. Miller. Assistant U.S. Attorney Eric M. Hurt 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. 4:15cr56.
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Owner of Virginia Beach Tourist Attractions Guilty of Tax EvasionRead the Press Release
NORFOLK, Va. – David A. Parker, 49, of Virginia Beach, pleaded guilty today to evading income tax assessment and payment.
Parker is the owner of Rudee Inlet Jet Skis and Adventure Parasail, Inc. – two companies that are in the business of providing jet ski rentals and parasailing tours at the Virginia Beach oceanfront to tourists and residents. During the relevant timeframe, Parker was also a partner in Duck Parasail, Inc., located in Duck, North Carolina, which provided similar services. In a statement of facts filed with the plea agreement, Parker admitted that from 2005 until 2011, he completely failed to file individual federal income tax returns and, also declined to file business income tax returns after 2007. For several years, Parker ignored attempts by the Internal Revenue Service to recoup his tax balance. In February 2012, an IRS Revenue Officer – again attempting to recover Parker’s outstanding tax balance – interviewed Parker about his failure to file individual income tax returns and his current finances. Parker failed to disclose all of his assets to the officer and maintained that he had little money, thus could not pay his tax balance. In the weeks after his meeting with the revenue officer, and rather than repay any portion of his tax balance, Parker traveled to casinos in Florida and Atlantic City, where he purchased nearly $50,000 in chips. The combined tax due and owing resulting from Parker’s failure to file individual and business income tax returns for tax years 2005 through 2011 is over $1 million.
Parker faces a maximum penalty of five 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 Thomas Jankowski, Special Agent in Charge, Washington D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after the plea was accepted by U.S. District Judge Arenda L. Wright Allen. Assistant U.S. Attorney V. Kathleen Dougherty 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. 2:15cr113.
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Babysitter Sentenced to 26 Years for Producing Child PornographyRead the Press Release
NORFOLK, Va. – Aaron Michael Burns, 26, of Norfolk, was sentenced today to 312 months in prison for production of child pornography. In addition to the sentence of imprisonment, he was sentenced to a term of lifetime supervised release.
Burns pleaded guilty on July 8, 2015. According to court documents, in June 2013, a three year-old girl was taken to a local emergency room because she claimed her live-in babysitter, defendant Burns, had touched her genitals. Burns was arrested by Norfolk Police Department (NPD), but left his computer powered on at the victim’s residence. The victim’s father saw a desktop folder on the computer labeled “child-sex.” Subsequent to a search warrant, NPD searched and seized a number of Burns’ computer devices. Forensic examinations by NPD and Homeland Security Investigations (HSI) revealed over 20 images of the victim engaging in sexually explicit conduct another set of sexually explicit images of an unidentified toddler, and numerous images that Burns downloaded from the Internet.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Clark E. Settles, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigation (HSI); and Michael Goldsmith, Chief of Norfolk Police Department, made the announcement after sentencing by Chief U.S. District Judge Rebecca Beach Smith. Assistant U.S. Attorney Elizabeth M. Yusi prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14-cr-9.
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Richmond Felon Caught with Gun and Ammunition Pleads GuiltyRead the Press Release
RICHMOND, Va. – Khadim Myboye Taylor, 29, of Richmond, pleaded guilty today to charges of possession of a weapon by a previously convicted felon.
In a statement of facts filed with the plea agreement, Taylor was a passenger in a vehicle driven by his co-defendant, Joshua Brooks, 28, of Richmond, when Richmond police officers stopped the vehicle for speeding. After being asked to step out of the car for a pat down for weapons, Taylor attempted to flee and was observed by police dropping a .38 caliber pistol which was recovered.
Taylor was indicted by a federal grand jury on Aug. 4, 2015, and faces a mandatory minimum sentence of 15 years in prison when sentenced on Jan. 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 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 Henry E. Hudson. 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. 3:15cr135.
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Three Hampton Roads Men Sentenced for Armed Robberies in Norfolk and Virginia BeachRead the Press Release
NORFOLK, Va. – Edgar Brito, 21, of Virginia Beach, was sentenced today to 128 months in prison for the armed robbery of approximately $100,000 in cell phones from numerous businesses throughout Hampton Roads. Co-conspirator Daren Artis, 20, of Chesapeake, was sentenced to 128 months in prison on Sept. 17, 2015, and co-conspirator Alexander Horst, 23, of Virginia Beach, was sentenced to 110 months in prison on Sept. 21, 2015.
According to the statement of facts filed with the plea agreement, the men committed a string of armed robberies of stores that sold cellular phones, including Radio Shack on Colley Avenue in Norfolk on Dec. 2, 2014; T-Mobile on Tidewater Drive in Norfolk on Dec. 7, 2014; and a T-Mobile store on Phoenix Drive in Virginia Beach on Jan. 1, 2015. During these robberies, the men entered the stores wearing masks and demanded employees at gunpoint to provide cash from the registers and cell phones.
As the three men fled from the Virginia Beach robbery they dropped one of their duffle bags, which contained stolen cell phones and a Greyhound bus ticket bearing Brito’s name. Detectives from the Virginia Beach Police Department arrested Brito and he confessed to the armed robbery. Nearly 40 cellular phones, a .357 handgun, and cash from the Virginia Beach armed robbery were recovered from the defendants.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; and John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after the sentence was imposed by U.S. District Judge Mark S. Davis.
This case was investigated by the FBI’s Norfolk Field Office, and the Norfolk and Virginia Beach Police Departments. U.S. Attorney William D. Muhr and Virginia Assistant Attorney General 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-46.
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Williamsburg Attorney Indicted in Timeshare Scheme Resulting in Loss of $1.3 millionRead the Press Release
NEWPORT NEWS, Va. – A Williamsburg attorney was arrested today on a federal indictment returned yesterday, charging her with participating in a conspiracy to commit mail and wire fraud, as well as numerous counts of mail fraud, wire fraud and aggravated identity theft related to the transfer of thousands of timeshare units into the names of stolen identities and straw owners.
According to court documents and court proceedings, Deborah M. Wagner, 43, of Williamsburg, participated in a timeshare scheme with Keith Kosco, Julie Duffield, Brendan Hawkins and others. Keith Kosco owned and operated a number of entities involved in travel, tourism and timeshare businesses including Resort Realty, Inc., Resort Solutions, Inc., and Exotic Equity Transfers, LLC (EET). Brendan Hawkins owned and operated another timeshare transfer business known as GoodBye Timeshares (GoodBye). A timeshare unit, generally a fully furnished resort accommodation, is a deeded or non-deeded interest in real estate divided into intervals, most commonly by week. Since at least 2007, EET and GoodBye conducted timeshare transfers in exchange for fees charged to the original owner. It was represented to the seller of the timeshare that clean title would pass to the new owner with no further obligations of timeshare ownership (including maintenance fees) on the original owner once the transfer was complete.
Transfer paperwork was handled by EET in coordination with Professional Closing Company which served as a third party closing entity, and was operated by co-defendant Julie Duffield. In 2013, Wagner and her firm took over these duties for EET and had worked with Hawkins since at least 2011. From at least 2009 – 2013, Kosco, Duffield, Hawkins, and their employees conducted fraudulent transfers of over 1,000 timeshare units into the names of stolen identities. The defendants collected fees for conducting the transfers from the original owners. None of the stolen identities / straw buyers paid the required maintenance fees or taxes on the timeshare units, resulting in over $1,300,000 in losses to select resorts for the unpaid fees. Kosco, Duffield, Hawkins, and their employees, engaged in various fraudulent acts in support of the scheme, including false statements and promises to resorts, propping up stolen identities with email accounts, bank accounts and tax returns, falsely notarizing signatures and preparing fraudulent deed paperwork. The transfers also had a devastating impact on the credit of the stolen identities/straw buyers. Wagner participated in the scheme from 2011 – 2013 working with both Kosco and Hawkins and their respective companies. It is alleged that she transferred many timeshare units into the names of stolen identities and straw owners, resulting in hundreds of thousands of dollars in losses to the affected resorts due to lost maintenance fees and taxes.
Julie Duffield pleaded guilty and was sentenced to 26 months in prison and ordered to pay restitution, jointly with Kosco, in excess of $740,000. Kosco pleaded guilty and was sentenced to 74 months in prison. In a related case, Brendan Hawkins pleaded guilty and was sentenced to 46 months in prison and ordered to pay more than $500,000 in restitution.
Wagner faces a maximum penalty of 20 years in prison if convicted on each of the mail and wire fraud counts and a mandatory minimum term of 24 months in prison on the aggravated identity theft charges. 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 Wagner’s initial appearance before U.S. District Magistrate Judge Lawrence R. Leonard. Assistant U.S. Attorneys Brian J. Samuels and Kaitlin C. Gratton are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:15cr28.
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Luray Man Sentenced for Tampering with Evidence in Drug Overdose CaseRead the Press Release
ALEXANDRIA, Va. – Jason Gregory Colley, 36, of Luray, was sentenced today to 96 months in prison for tampering with evidence for moving the body of a drug overdose victim. Colley was also ordered to pay $17,175.70 in restitution to the family of Jason Laytham, who died of a drug overdose, to cover funeral expenses.
Colley pleaded guilty on July 22, 2015. According to court documents, on or about Sept. 12, 2014, Colley sold cocaine to Laytham, formerly of Leesburg, and another individual at an extended stay hotel in Ashburn. After using an additional quantity of drugs, Laytham and the other individual became unconscious. Colley dragged Laytham’s body out of the hotel suite (which Colley had rented using his own name) into a common area of the hotel before calling for paramedics. When law enforcement officers arrived the other individual was unconscious in Colley’s hotel suite. While the other individual survived, Laytham died from the adverse effects of cocaine and other substances.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Michael L. Chapman, Loudon 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 Leonie M. Brinkema. Assistant U.S. Attorney Tobias D. Tobler and former Assistant U.S. Attorney Michael P. Ben’Ary 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-203.
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Navy Civilian Engineer Sentenced to 11 Years for Attempted EspionageRead the Press Release
NORFOLK, Va. – Mostafa Ahmed Awwad, 36, of Yorktown, was sentenced today to 132 months in prison for attempted espionage relating to his attempt to provide schematics of the Navy’s newest nuclear aircraft carrier, the USS Gerald R. Ford, to Egypt.
“Mr. Awwad attempted to steal the valuable plans for the USS Ford and to provide them to a foreign government,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “This office is committed to safeguarding our nation’s sensitive defense information, and we will bring to justice those who seek to steal it. I want to commend our partners at the FBI Norfolk and NCIS Norfolk for their excellent work on this case.”
“Awwad took advantage of his position of trust within the Navy to share the schematics of the USS Gerald R. Ford nuclear aircraft carrier with individuals whom he believed were representing a foreign government,” said John Carlin, Assistant Attorney General for National Security. “The National Security Division will continue to seek justice for those who abuse their access to sensitive defense information.”
“This case is a chilling reminder that the insider threat is more pervasive and dangerous than ever," said John S. Adams, Special Agent in Charge of the FBI's Norfolk Field Office. "The defendant’s actions and intent to provide national defense information to a foreign government posed a significant threat to national security and directly endangered the lives of American service members. The incident highlights the critical importance for the FBI to continue to prioritize counterintelligence matters and to vigorously investigate and disrupt any espionage activity directed against the United States.”
"The mission of NCIS includes protecting Sailors and secrets,” said Tim Quick, Special Agent in Charge of NCIS Norfolk Field Office. “Awwad endangered both; for personal gain and to help strengthen another nation's military. It's gratifying that NCIS was a part of bringing him to justice."
Awwad pleaded guilty on June 15, 2015. According to court documents, Awwad began working for the Department of the Navy in February 2014 as a civilian general engineer in the Nuclear Engineering and Planning Department at the Norfolk Naval Shipyard. Based on a joint investigation, an undercover FBI agent contacted Awwad by telephone on Sept. 18, 2014, and asked to meet him the following day. Without seeking additional information from the caller, Awwad agreed. The next day, Awwad met with the undercover FBI agent, who was posing as an Egyptian intelligence officer, in a park in Hampton, Virginia. During the meeting, Awwad claimed it was his intention to utilize his position with the U.S. Navy to obtain military technology for use by the Egyptian government, including but not limited to the designs of the USS Gerald R. Ford nuclear aircraft carrier, a new Navy “supercarrier.” Awwad agreed to conduct clandestine communications with the undercover FBI agent, and to conduct “dead drops” in a concealed location in the park.
On Oct. 9, 2014, Awwad and the undercover FBI agent met at a hotel where Awwad described a detailed plan to circumvent U.S. Navy computer security by installing software on his restricted computer system that would enable him to copy documents without causing a security alert. At this time, Awwad also provided the undercover FBI agent with four Computer Aided Drawings of a U.S. nuclear aircraft carrier downloaded from the Navy Nuclear Propulsion Information system. During the discussion, Awwad indicated his understanding that the drawings would be sent to and used in Egypt. Awwad also asked the undercover FBI agent for $1,500 to purchase a pinhole camera that he would wear around the shipyard to photograph restricted material. At the conclusion of the meeting, Awwad agreed to provide the undercover FBI agent with passport photos which would be used to produce a fraudulent Egyptian passport so that Awwad could travel to Egypt without alerting U.S. government officials.
On Oct. 23, 2014, Awwad traveled to the pre-arranged dead drop site situated on a secluded hiking trail and utilized a concealed container disguised in a hole in the ground. He retrieved $3,000 before placing an external hard drive and two passport photos inside.
On Dec. 5, 2014, Awwad and the undercover agent met in the Hampton Roads, Virginia, area. During this meeting, Awwad stated that he planned to travel to Egypt. Awwad subsequently said he wanted to meet with “high ranking” Egyptian intelligence and military officials in Cairo. Awwad also stated during the meeting that he had copied all of the schematics. During the meeting, Awwad provided the undercover FBI agent a thumb drive that contained more schematics of the USS Gerald R. Ford. The undercover FBI agent handed Awwad the “escape plan” – in actuality a manila envelope with no real plan inside – along with $1,000 in currency, shortly before Awwad was arrested.
The schematics of the USS Gerald R. Ford that Awwad provided are information related to the national defense of the United States. The USS Gerald R. Ford, which is currently under construction, is the first in a new class of aircraft carriers. When completed, the USS Ford will be the most advanced aircraft carrier in the world, with approximately 4,000 sailors on board. The schematics contain Naval Nuclear Propulsion Information and they are marked with the handling restriction “NOFORN,” which means they are not releasable to foreign persons.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; John Carlin, Assistant Attorney General for National Security; Randall C. Coleman, Assistant Director of the FBI’s Counterintelligence Division; and Tim Quick, Special Agent in Charge of the NCIS 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 and NCIS Norfolk, in cooperation with the Department of Navy. Assistant U.S. Attorneys Benjamin L. Hatch and Joseph E. DePadilla, and National Security Division Counterespionage Senior Trial Attorney Heather M. Schmidt 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-163.
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Man Sentenced to 15 Years for Online Enticement of Virginia Beach GirlRead the Press Release
NORFOLK, Va. – Scott Thomas Sandler, 51, of Grand Forks, North Dakota, was sentenced today to 180 months in prison and lifetime supervised release for enticement of a minor.
Sandler pled guilty on March 26, 2015. According to court documents, Sandler met a 13 year-old girl from Virginia Beach on Facebook in March 2014. The two struck up an online friendship that quickly turned sexual, and Sandler sent numerous images of his genitals to her. The online relationship lasted about one month. At that time, the victim’s father found out and reported the crime to the Virginia Beach Police Department (VBPD), who identified Sandler by his self-photographs that he sent to the victim, which included a distinctive shirt that contained the name of Sandler’s employer in North Dakota. After Sandler was identified, his computers were confiscated and examined. The VBPD discovered that Sandler had been having online sexual relationships with additional minors, as well as collecting hundreds of sexually explicit images of minors from the Internet.
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 Homeland Security Investigations Washington, D.C. Field Office, and James A. Cervera, Virginia Beach Chief of Police, made the announcement after sentencing by U.S. District Judge Arenda L. Wright Allen. Assistant U.S. Attorney Elizabeth M. Yusi prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15-cr-4.
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ISIL-Linked Hacker Arrested in Malaysia on U.S. ChargesRead the Press Release
ALEXANDRIA, Va. – Ardit Ferizi, a citizen of Kosovo, has been detained by Malaysian authorities on a U.S. provisional arrest warrant alleging that he provided material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization, and committed computer hacking and identity theft violations in conjunction with the theft and release of personally identifiable information (PII) of U.S. service members and federal employees. The criminal complaint was unsealed in the Eastern District of Virginia today.
According to the criminal complaint, Ferizi, also known by his hacking moniker “Th3Dir3ctorY,” is believed to be the leader of a Kosovar internet hacking group called Kosova Hacker’s Security (KHS). Ferizi hacked into the computer system of a victim company located in the United States and stole the PII of thousands of individuals. He then provided the PII of over 1,000 U.S. service members and federal employees to ISIL to be used against those employees. Between June and August 2015, Ferizi provided unlawfully obtained PII to ISIL member Junaid Hussain, aka Abu Hussain al-Britani. On Aug. 11, 2015, in the name of the Islamic State Hacking Division (ISHD), Hussain posted a tweet titled “NEW: U.S. Military AND Government HACKED by the Islamic State Hacking Division!” which contained a hyperlink to a 30-page document. That document stated, in part, that “we are in your emails and computer systems, watching and recording your every move, we have your names and addresses, we are in your emails and social media accounts, we are extracting confidential data and passing on your personal information to the soldiers of the khilafah, who soon with the permission of Allah will strike at your necks in your own lands!” The next 27 pages of the document contained the names, e-mail addresses, e-mail passwords, locations and phone numbers for approximately 1,351 U.S. military and other government personnel. This posting was intended to provide ISIL supporters in the United States and elsewhere with the PII belonging to the listed government employees for the purpose of encouraging terrorist attacks against those individuals.
“National security is compromised by computer intrusions, and Ferizi is charged with obtaining the personal identifying information of U.S. military and government personnel and providing it to ISIL,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “We will investigate and prosecute these cyber-attacks to fullest extent of the law.”
“As alleged, Ardit Ferizi is a terrorist hacker who provided material support to ISIL by stealing the personally identifiable information of U.S. service members and federal employees and providing it to ISIL for use against those employees,” said Assistant Attorney General Carlin. “This case is a first of its kind and, with these charges, we seek to hold Ferizi accountable for his theft of this information and his role in ISIL’s targeting of U.S. government employees. This arrest demonstrates our resolve to confront and disrupt ISIL’s efforts to target Americans, in whatever form and wherever they occur.”
Ferizi faces a maximum penalty of 35 years in prison if convicted. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; John 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. Assistant U.S. Attorney Lynn Haaland and Trial Attorney Gregory Gonzalez of the National Security Division’s Counterterrorism Section are prosecuting the case. The investigation is being conducted by the FBI’s Washington Field Office.
The Assistant Attorney General, U.S. Attorney and FBI Assistant Director thanked the Malaysian authorities for their assistance in this matter.
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-MJ-515.
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.
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Former Cable News Commentator Arrested and Charged with FraudRead the Press Release
ALEXANDRIA, Va. – Wayne Shelby Simmons, 62, of Annapolis, Maryland, a former occasional on-air commentator who appeared on a cable news network, was arrested today after being indicted by a federal grand jury on charges of major fraud against the United States, wire fraud, and making false statements to the government.
According to the indictment, Simmons falsely claimed he worked as an “Outside Paramilitary Special Operations Officer” for the Central Intelligence Agency (CIA) from 1973 to 2000, and used that false claim in an attempt to obtain government security clearances and work as a defense contractor, including at one point successfully getting deployed overseas as an intelligence advisor to senior military personnel. According to the indictment, Simmons also falsely claimed on national security forms that his prior arrests and criminal convictions were directly related to his supposed intelligence work for the CIA, and that he had previously held a top secret security clearance. The indictment also alleges that Simmons defrauded an individual victim out of approximately $125,000 in connection with a bogus real estate investment.
Simmons will make his initial appearance at 2 p.m. today in front of Magistrate Judge John F. Anderson at the federal courthouse in Alexandria.
If convicted, Simmons faces a maximum penalty of 20 years in prison on the wire fraud counts, 10 years in prison on the major fraud against the U.S. counts, and 5 years in prison on the false statements count. The maximum statutory sentences are prescribed by Congress and are provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement. Simmons will have his initial appearance later today before U.S. Magistrate Judge John F. Anderson. Assistant U.S. Attorney Paul J. Nathanson 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-293.
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.
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Fairfax Woman Guilty of Embezzling $653,000 from Virginia State SenatorRead the Press Release
ALEXANDRIA, Va. – Linda Diane Wallis, aka Lynn Wallis Miller, 51, of Fairfax, pleaded guilty today for her role in three fraud schemes totaling over $1 million in losses, including embezzling $653,000 from Virginia State Senator Richard Saslaw’s campaign fund.
According to the statement of facts filed with the plea agreement, Wallis participated in three separate fraud schemes from in or around January 2013 through in or around February 2014. In the first scheme, Wallis, along with a co-conspirator, D.M., created two fraudulent companies, the first known as Federal Legal Associates, and the second was The Straile Group. Through various methods including fraudulent wire transfers and checks, Wallis allegedly caused approximately $368,400 in loss to Company A.
The second scheme involved the embezzlement of approximately $653,000 from the campaign account of Senator Saslaw. From June 2013 to September 2014, Wallis served as the treasurer of the Saslaw for State Senate campaign. During that time, Wallis issued or caused to be issued, approximately 73 fraudulent checks from the Saslaw for State Senate campaign bank account, which totaled approximately $653,000. Wallis made the checks payable to the aforementioned Federal Legal Associates, The Straile Group, and herself. All of the checks were issued without knowledge or permission of Senator Saslaw or his campaign staff, and were deposited into accounts she independently controlled or that were jointly controlled with co-conspirator D.M.
The third scheme involves misuse of funds from a non-profit charitable organization, of which Wallis was Executive Director and co-conspirator D.M. co-founded. The non-profit, known as The Community College Consortium on Autism and Intellectual Disabilities (CCCAID), claimed to provide assistance to community colleges for program development and implementation and information on the availability of resources for sustainability of programs. In April 2010, Wallis established CCCAID’s bank account, and between April 2010 and April 2013, community colleges located around the country contributed approximately $293,000 to CCCAID. Additionally, a Bulgarian businessman associated with co-conspirator D.M. donated $500,000 to CCCAID. The funds contributed to CCCAID were to be used to further the mission of the organization and not to enrich Wallis or co-conspirator D.M. Despite these restrictions, from April 2010 to August 2014, Wallis authorized approximately $482,000 in transfers from CCCAID’s account to other bank accounts Wallis and co-conspirator D.M. controlled. A significant percentage of the $482,000 CCCAID was used to pay Wallis’ and co-conspirator D.M.’s personal expenses, such as mortgage payments, expenses related to food/restaurants, and merchandise purchases.
Wallis will be sentenced on Jan. 29, 2016, and faces a maximum penalty of 20 years in prison if convicted. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement. 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-285.
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Couple Guilty of Smuggling Heroin Aboard USS Bush That Led to OverdoseRead the Press Release
NORFOLK, Va. – Donald G. McManus, 22, and Breanna L. McManus, 23, of Wallingford, Connecticut, pleaded guilty today to charges related to the distribution of heroin aboard the USS George H.W. Bush aircraft carrier that ultimately led to the overdose of an active duty sailor.
Donald McManus and his wife, Breanna, were indicted by a federal grand jury on Sept. 2, 2015. According to the statement of facts filed with the plea agreements, Donald McManus was an active duty sailor in the United States Navy assigned to the USS George H.W. Bush aircraft carrier in February 2015. While in a restricted status on-board the USS Bush, Donald McManus had his wife smuggle heroin and syringes aboard the aircraft carrier. The McManus couple sold heroin to another sailor who was later found unresponsive on the floor in the ship’s berthing area. The USS Bush’s medical personnel immediately responded and worked with emergency medical technicians in an attempt to save the sailor’s life. The overdose victim was without a detectable pulse until medical personnel were able to resuscitate the sailor.
Donald and Breanna McManus were charged by criminal complaint on Aug. 13, 2015. Daonald McManus will be sentenced on Jan. 21, 2016, and Breanna McManus will be sentenced on Jan. 27, 2016. Each faces a maximum penalty of 20 years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; and Tim Quick, Special Agent in Charge of NCIS’s Norfolk Field Office, made the announcement after the pleas were accepted by U.S. District Judge Raymond A. Jackson.
This case was investigated by NCIS’s Norfolk Field Office. Special Assistant U.S. Attorney Alyssa Nichol, Virginia Assistant Attorney General and Special Assistant U.S. Attorney John F. Butler, and Assistant U.S. Attorney Andrew C. Bosse 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-109.
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Portsmouth Man Sentenced to 40 Years in Prison for Drug and Gun CrimesRead the Press Release
NORFOLK, Va. – Jason Marvin Saunders, 33, of Portsmouth, was sentenced today to 480 months in prison for drug conspiracy and gun crimes, including conspiracy to distribute heroin, cocaine, and cocaine base, and possession of firearms in furtherance multiple drug trafficking crimes. Saunders’ twin brother and co-conspirator, Jeremy Lynn Saunders, pleaded guilty to drug conspiracy and firearms charges, and was sentenced to 25 years in prison on June 25, 2015.
Saunders was convicted by a federal jury on July 2, 2015. According to court records and evidence at trial, from January 2012 to about August 2014, the Saunders brothers jointly distributed over 1,000 grams of heroin, over 5,000 grams of cocaine, and over 280 grams of cocaine base through an organization that they managed and used firearms to protect. On Aug. 23, 2014, Saunders and his brother were involved in an exchange of gunfire with a rival drug organization outside a location they operated on Appomattox Avenue in Portsmouth. In response to that incident, Saunders possessed a Taurus PT 145 Millennium Pro .45 Caliber pistol with 8 cartridges and a Ruger P85 9MM pistol. During the execution of a search warrant on Feb. 6, 2014, at a different location, Saunders was found with approximately 125 grams of cocaine powder, 50 grams of heroin, 16 grams of crack cocaine, scales, packaging materials, cutting agents, a Makarov Special Edition .380 Caliber semi-automatic pistol with 8 cartridges, a Rohm RG10 .22 Caliber revolver, and thousands of dollars in cash.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Karl C. Colder, Special Agent in Charge for DEA’s Washington Office, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorneys Joseph DePadilla and Andrew Bosse prosecuted the case.
The case was investigated by the DEA’s Norfolk Office with the assistance of the Portsmouth Police Department as part of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal, multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15cr2.
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New York Jeweler Guilty of Laundering Money from Richmond Jewelry HeistsRead the Press Release
NEWPORT NEWS, Va. – Slavik Hayimov, aka Steve Hayimov, 44, of Queens, New York, pleaded guilty today to charges related to laundering the proceeds of a sophisticated jewelry theft ring.
In a statement of facts filed with the plea agreement, Hayimov conspired with a jewelry theft ring that was based in Richmond. The thieves regularly conducted lengthy surveillance on jewelry stores to identify vulnerable individuals and then followed their targets to their hotels or homes. In most of the robberies, several men would suddenly appear as the victims approached or entered their car, punch out the car’s windows, threatened the victims at knife-point and would steal the victims’ merchandise. In addition, the robbers would puncture the victims’ car tires and steal their cell phone to reduce the chance of pursuit or apprehension. The theft ring ultimately stole more than $5 million in jewelry from victims in Virginia and at least six other states.
According to court documents, after a successful robbery members of the ring would travel to New York to sell the merchandise to Hayimov. Knowing that the merchandise was stolen, Hayimov paid far less than fair market value for the jewelry. To conceal his and the theft ring’s activities, he paid for the stolen merchandise in cash and by making anonymous bank deposits. Members of the group used the funds provided by Hayimov to purchase investment properties and pay for expenses they incurred while committing crimes.
Hayimov was indicted by a federal grand jury on Nov. 18, 2014. He faces a maximum penalty of 20 years in prison when 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; Charles E. Smith, Special Agent in Charge of the Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; 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 Arenda L. Wright Allen. Assistant U.S. Attorney Eric M. Hurt and Trial Attorney Adam L. Small of the Organized Crime and Gang Section of the Justice Department’s Criminal Division are prosecuting the case.
The case was investigated by the ATF and FBI-Norfolk, with assistance from Virginia police departments in Williamsburg, Virginia Beach, Henrico County, Chesterfield, Prince William County, Fairfax County, and the Virginia State Police. Additional assistance was provided by police departments in Baltimore County, Maryland; Port Authority of New York and New Jersey; New York City Police Department; Rutherford Police Department, New Jersey; and Gwinnett County Police Department, Georgia. Also assisting was the Morris County, New Jersey, Prosecutor’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. 4:12-cr-00039.
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Maryland Woman Guilty of Stealing $426,000 from EmployerRead the Press Release
ALEXANDRIA, Va. – Jennifer Xanten, 51, of Frederick, Maryland, pleaded guilty today to charges of mail fraud relating to her stealing more than 500 checks totaling approximately $426,000 out of her employer’s incoming mail.
In a statement of facts filed with the plea agreement, Xanten, an employee of a rehabilitation center in Rockville, Maryland, admitted to stealing the checks out of the center’s incoming mail from February 2014 to July 2015. To effectuate her scheme, Xanten, who was responsible for mailing out the companies’ invoices, would send out invoices to collect payment for services the center performed. One such company who received invoices was located in Chantilly. She would then intercept the incoming check payments and deposit the checks into her personal account without authorization. Xanten, who was responsible for inputting entries into the bookkeeping records, falsified entries related to the stolen checks in order to conceal her scheme.
Xanten faces a maximum penalty of 20 years in prison when sentenced on Jan. 28, 2016. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; 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 James C. Cacheris. Assistant U.S. Attorney Jamar K. Walker 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. 1:15cr286.
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Chesterfield Man Guilty of Producing Child Pornography of Local VictimRead the Press Release
RICHMOND, Va. – Zebulon Resolve Wendt, 34, of Chesterfield County, pleaded guilty today to producing child pornography of a local juvenile whom he had babysat and sexually abused and exploited on numerous occasions.
According to court documents, Canadian law enforcement detected Wendt after he uploaded several images of a juvenile female engaged in sexually explicit conduct from his Chesterfield residence to an Internet website. Federal agents with the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), subsequently executed a search warrant at Wendt’s residence where they recovered several computers, external hard drives, and other computer equipment. A subsequent forensic examination of the seized items revealed thousands of images and videos of a juvenile female engaged in sexually explicit conduct that Wendt himself had taken with a digital camera and saved onto his computer equipment. Evidence showed that he then distributed these images and videos to other individuals over the Internet.
Wendt was charged by superseding indictment on July 7, 2015. Wendt faces mandatory minimum sentence of 15 years in prison and a maximum sentence of 30 years in prison when sentenced on January 14, 2015, before U.S. District Judge Robert E. Payne. Upon release from prison, Wendt will be required to register as a sex offender in any U.S. jurisdiction in which he lives, works, or attends school. 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 Herring, Attorney General of Virginia; and Clark E. Settles, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigation (HSI), made the announcement after the plea was accepted by U.S. Magistrate Judge Roderick C. Young. Special Assistant U.S. Attorneys Stacey E. Rohrs and Samuel E. Fishel of the Virginia Attorney General’s Office 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. 3:15cr095.
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McLean Man Sentenced to Prison for Gold Investment Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – Philip Barnard, Jr., 54, of McLean, was sentenced today to 63 months in prison, followed by three years of supervised release for one count of wire fraud and three counts of money laundering for his role in a gold investment fraud scheme involving multiple investors and up to $1 million in investor deposits. Barnard was also ordered by the court to pay $816,612 in restitution to victims.
Barnard pleaded guilty on July 22, 2015; three days into trial and after prosecutors had presented 10 witnesses and entered over 200 exhibits into evidence. According to court documents, Barnard owned and operated various companies that purportedly were in the business of coordinating gold transactions. Barnard claimed to have a global clientele including foreign governments, the world’s richest private investors, foreign private banks, and major purchasers of precious metals. Barnard solicited funds from investors through false and misleading representations regarding the use of funds, the amount of return on the investments, and the risk associated with investment of the funds. He also misrepresented that investors would receive minimum and/or guaranteed profits. For example, Barnard told one victim, “This opportunity involves no risk of losing your investment due to the nature of how we take possession of the bullion we work with ... And, remember, I would never allow you to lose one dime.” Barnard guaranteed short term returns as high as 1,500 percent.
According to court documents, Barnard sent charts, graphs, and certificates related to the purported investment designed to lull investors into a false sense of profitability. Unknown to investors, Barnard spent investment funds on personal expenses including private school tuition, personal vehicles, jewelry, and travel. After the investments failed to yield any profit, Barnard lied to investors about the security of their funds. For example, although he had already spent their funds on personal use, Barnard told one investor, “Your investment is in good hands. All of the assurances that I made to you are real. You can rely on my statements.” When some investors contemplated contacting law enforcement authorities, Barnard coerced them into signing agreements that claimed to immunize him from any civil or criminal liability. Ultimately, investors suffered losses up to $1 million.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; and Colonel Edwin C. Roessler, Jr., Fairfax County Chief of Police, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorneys Uzo Asonye and Christopher Catizone 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-60.
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Prisoner Who Escaped from Custody at Virginia Hospital Sentenced to 32 Years in PrisonRead the Press Release
ALEXANDRIA, Va. – Wossen Assaye, 43, of Arlington, was sentenced today to 384 months in prison, followed by five years of supervised release for two counts of using, carrying, and brandishing a firearm during and in relation to a crime of violence, with both counts based on his armed assaults of two security guards during his March 31, 2015, escape from Inova Fairfax Hospital. Assaye was also ordered to pay restitution in the amount $34,870 for the 12 bank robberies, and was ordered to undergo drug testing and treatment in addition to a mental health evaluation and treatment.
Assaye pleaded guilty on July 23, 2015. According to court documents, Assaye accepted responsibility for not only the firearms offenses, but also additional criminal conduct for which he was charged or suspected to be responsible. According to the statement of facts, beginning in October 2013 and continuing until March 2015, Assaye robbed various banks in Northern Virginia on 11 occasions, two of which were armed robberies. In another instance, Assaye entered a bank with the intent to commit bank robbery and larceny. After being arrested for his crimes, Assaye escaped from federal custody while at a Virginia hospital for treatment. During the course of his escape, Assaye assaulted a security guard, overpowered her, and took her firearm. He then pointed the firearm at a second guard before pulling the first guard down the hospital hallway at gunpoint and fleeing the hospital.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; Colonel Edwin C. Roessler, Jr., Fairfax County Chief of Police; Earl L. Cook, Alexandria Chief of Police; Michael L. Chapman, Loudoun County Sheriff; and Mary Gavin, Falls Church Chief of Police, made the announcement after sentencing by Judge Brinkema.
This case was investigated by the FBI’s Washington Field Office, Fairfax County Police Department, Alexandria City Police Department, Loudoun County Sheriff’s Office, and the Falls Church City Police Department. Also, during the course of the investigation assistance was received from U.S. Marshals Service, Virginia State Police, Arlington County Police Department, and Metropolitan Police Department of the District of Columbia. Assistant U.S. Attorneys Michael E. Rich and William M. Sloan, and Special Assistant U.S. Attorney William A. Glaser 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-115.
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Henrico Man Sentenced to More Than 24 Years for Sexually Abusing Young BoysRead the Press Release
RICHMOND, Va. – Noland Anthony Harper, 61, of Henrico County, was sentenced today to 292 months in prison for engaging in a child exploitation enterprise that included sexually abusing young boys as young as 11-years old. Following his prison term, Harper will be required to register as a sex offender in any U.S. jurisdiction in which he lives, works, or attends school.
Harper pleaded guilty on July 16, 2015. According to court documents, Harper conspired with three other men to sexually abuse three juvenile victims, photograph the abuse, and then distribute the photos to other individuals over the Internet. Harper helped set up the websites the enterprise used to market and distribute pornographic images of children, and was the enterprise’s principal financier. In 2014, Harper traveled from Richmond to Desert Hot Springs, California, on three separate occasions. During his trips to California, Harper regularly met up with the three minor boys, all of whom were under 16-years-old, including two boys who were 11-years-old. Harper would sexually abuse the boys, both at the home of a co-conspirator and during multi-day road trips to, among other places, the beach and Disneyland. Harper and his co-conspirators recruited the young boys, giving them gifts and cash if the boys agreed to pose for explicit photo shoots. Harper would subsequently upload the sexually explicit images to his computer and online storage accounts, and sent other images to a co-conspirator for use on the enterprise’s website. Harper also distributed child pornography from his Henrico residence to willing recipients.
Harper’s alleged co-conspirators are currently facing state charges in California and federal charges in Nevada, respectively.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark Herring, Attorney General of Virginia; and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by U.S. District Judge M. Hannah Lauck. The case was investigated by the FBI as part of the FBI’s Innocent Images Task Force, and Homeland Security Investigations. Assistant U.S. Attorneys Jessica D. Aber and Thomas A. Garnett, and Special Assistant U.S. Attorney Samuel E. Fishel of the Virginia Attorney General’s Office, 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. 3:15cr36.
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Richmond Man Convicted of Stealing Social Security Survivors’ BenefitsRead the Press Release
RICHMOND, Va. – Marcel Kiza, 58, of Richmond, was convicted today by a federal jury on charges of theft of government property.
Kiza was indicted on March 18, 2015. According to court records and evidence at trial, Kiza fraudulently obtained over $50,000 in Child’s Insurance Benefits as a representative payee under the name Marcel Kiza for two children whom he represented to be his deceased brother’s children. Evidence at trial showed that Kiza did not have a deceased brother, and that he created two identities in order to fraudulently receive Survivors’ Benefits for his own children. Evidence at trial showed that Kiza had originally entered the country under the name Amuri Ntambwe Kiza, until 2007 when he became a citizen and legally changed his name to Marcel Joshua Kiza. The government presented social security applications, customs and immigration documents, and a legal name-change petition. These documents showed the defendant using the same identifiers and, at times, both names. Additionally, a fingerprint examiner testified that a fingerprint impression taken in 2002 from Amuri matched a 2013 fingerprint taken from Marcel, and both of those fingerprints matched Kiza’s current fingerprint impressions.
Kiza faces a maximum penalty of 10 years in prison when sentenced on Jan. 7, 2016. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Rod Owens, Resident Agent-in-Charge, Social Security Administration, Office of Inspector General, made the announcement after the verdict was accepted by U.S. District Judge Robert E. Payne. Assistant U.S. Attorney Heather L. Hart and Special Assistant United States Attorney Margaret Reed 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-46.
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Fairfax Woman Allegedly Embezzled $653,000 from Virginia State SenatorRead the Press Release
ALEXANDRIA, Va. – Linda Diane Wallis, aka Lynn Wallis Miller, 51, of Fairfax, was charged by criminal information today for her alleged role in three fraud schemes totaling over $1 million in losses, including embezzling $653,000 from Virginia State Senator Richard Saslaw’s campaign fund.
According to the criminal information, Wallis is charged with one count of conspiracy to commit wire fraud for allegedly participating in three separate fraud schemes from in or around January 2013 through in or around February 2014. In the first scheme, Wallis, along with a co-conspirator, D.M., created two fraudulent companies, the first known as Federal Legal Associates, and the second was The Straile Group. Through various methods including fraudulent wire transfers and checks, Wallis allegedly caused approximately $368,400 in loss to Company A.
The second scheme alleged in the criminal information details the embezzlement of approximately $653,000 from the campaign account of Sen. Saslaw. Beginning in or around June 2013 to September 2014, Wallis served as the treasurer of the Saslaw for State Senate campaign. During that time, Wallis issued or caused to be issued, approximately 73 fraudulent checks from the Saslaw for State Senate campaign bank account, which totaled approximately $653,000. Wallis made the checks payable to Federal Legal Associates, The Straile Group, and herself. All of the checks were issued without knowledge or permission of Senator Saslaw or his campaign staff, and were deposited into accounts she independently controlled or that were jointly controlled with D.M.
The third scheme detailed in the criminal information alleges misuse of funds from a non-profit charitable organization, of which Wallis was Executive Director and D.M. co-founded. The non-profit, known as The Community College Consortium on Autism and Intellectual Disabilities (CCCAID), claimed to provide assistance to Community Colleges for program development and implementation and information on the availability of resources for sustainability of programs. In or about April 2010, Wallis established CCCAID’s bank account and between in or about April 2010 to in or about April 2013, community colleges located around the country contributed approximately $293,000 to CCCAID. Additionally, a Bulgarian businessman associated with D.M. donated $500,000 to CCCAID. The funds contributed to CCCAID were to be used to further the mission of the organization and not to enrich Wallis or D.M. Despite these restrictions, from in or about April 2010 to in or about August 2014, Wallis authorized approximately $482,000 in transfers from CCCAID’s account to other bank accounts Wallis and D.M. controlled. A significant percentage of the $482,000 CCCAID was used to pay Wallis’ and D.M.’s personal expenses, such as mortgage payments, expenses related to food/restaurants, and merchandise purchases.
Wallis faces a maximum penalty of 20 years in prison if convicted. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement. 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-285.
A criminal information contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
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Woodbridge Man Sentenced to 5 Years in Child Pornography CaseRead the Press Release
ALEXANDRIA, Va. – Jon W. McClellan, 55, of Woodbridge, was sentenced today to 60 months in prison and five years of supervised release for charges of receipt of child pornography.
McClellan pleaded guilty on July 14, 2015. Prior to that date, McClellan worked as an intelligence analyst and held a high-level security clearance. According to court documents, from March 2010 to February 2014, McClellan used a peer-to-peer file sharing program to receive and collect child pornography videos and images, including numerous videos of children under 12 years old being sexually abused. In total, McClellan’s child pornography collection included over 1,500 images and 1,800 videos of children being sexually exploited, including numerous images and videos depicting sadistic or masochistic conduct.
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 (HSI), Washington D.C. office, made the announcement after sentencing by U.S. District Judge Gerald Bruce Lee. This case was investigated by HSI. Assistant U.S. Attorney Whitney Dougherty Russell prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-CR-182.
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Twin Brothers Sentenced for Wire Fraud, Conspiring to Hack into U.S. Department of State and Private CompanyRead the Press Release
Twin brothers Muneeb and Sohaib Akhter, 23, of Springfield, Virginia, were sentenced today for conspiracy to commit wire fraud, conspiracy to access a protected computer without authorization and conspiracy to access a government computer without authorization. Muneeb Akhter was also sentenced for accessing a protected computer without authorization, making a false statement and obstructing justice. Muneeb Akhter was sentenced to 39 months in prison and Sohaib Akhter was sentenced to 24 months in prison. Each man was also sentenced to three years of supervised release.
“The Akhter brothers’ misuse of their computer skills harmed numerous individuals and companies, and their efforts to gain clandestine access to State Department systems represented a threat to national security,” said U.S. Attorney Dana J. Boente for the Eastern District of Virginia. “Electronic barriers are no less real, or legitimate, than physical ones. This prosecution sends a clear message to anyone else attempting to weaken the cybersecurity of institutions or use computers to commit crimes.”
The Akhter twins were indicted by a federal grand jury on April 30, 2015, and pleaded guilty on June 26, 2015. According to court documents, beginning in or about March 2014, Muneeb Akhter hacked into the website of a cosmetics company and stole thousands of its customers’ credit card and personal information. The Akhter brothers and co-conspirators used the stolen information to purchase goods and services, including flights, hotel reservations and attendance at professional conferences. Muneeb Akhter also provided stolen information to an individual he met on the “dark net,” who sold the information to other dark-net users and gave Akhter a share of the profits.
In a separate scheme, the Akhter brothers and co-conspirators engaged in a series of computer intrusions and attempted computer intrusions against the U.S. Department of State to obtain sensitive passport and visa information and other related and valuable information about State Department computer systems. In or around February 2015, Sohaib Akhter used his contract position at the State Department to access sensitive computer systems containing personally identifiable information belonging to dozens of co-workers, acquaintances, a former employer and a federal law enforcement agent investigating his crimes.
Sohaib Akhter later devised a scheme to ensure that he could maintain perpetual access to desired State Department systems. Sohaib Akhter, with the help of Muneeb Akhter and co-conspirators, attempted to secretly install an electronic collection device inside a State Department building. Once installed, the device could have enabled Sohaib Akhter and co-conspirators to remotely access and collect data from State Department computer systems. Sohaib Akhter was forced to abandon the plan during its execution when he broke the device while attempting to install it behind a wall at a State Department facility in Washington, D.C.
Furthermore, beginning in or about November 2013, Muneeb Akhter was performing contract work for a private data aggregation company located in Rockville, Maryland. He hacked into the company’s database of federal contract information so that he and his brother could use the information to tailor successful bids to win contracts and clients for their own technology company. Muneeb Akhter also inserted codes onto the victim company’s servers that caused them to vote for Akhter in an online contest and send more than 10,000 mass emails to students at George Mason University, also for the purpose of garnering contest votes.
In or about October 2014, Muneeb Akhter lied about his hacking activities and employment history on a government background investigation form while successfully obtaining a position with a defense contractor. Furthermore, in or about March 2015, after his arrest and release pending trial, Muneeb Akhter obstructed justice by endeavoring to isolate a key co-conspirator from law enforcement officers investigating the conspirators’ crimes. Among other acts, Muneeb Akhter drove the co-conspirator to the airport and purchased a boarding pass, which the co-conspirator used to travel out of the country to the Republic of Malta. When the co-conspirator returned to the United States, Muneeb Akhter continued to encourage the co-conspirator to avoid law enforcement agents.
U.S. Attorney Dana J. Boente for the Eastern District of Virginia; Acting Chief Security Officer Charles R. Taylor for Department of Homeland Security (DHS); Assistant Secretary Gregory B. Starr for the U.S. Department of State’s Bureau of Diplomatic Security; and Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge T.S. Ellis, III.
This case was investigated by the Internal Security and Investigations Division of the Office of the Chief Security Officer, DHS Headquarters; the U.S. Department of State’s Bureau of Diplomatic Security, and FBI’s Washington Field Office. Special Assistant U.S. Attorneys John Taddei and Jennifer Clarke 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-124.
Twin Brothers Sentenced for Wire Fraud, Conspiring to Hack into U.S. Department of State and Private CompanyRead the Press Release
ALEXANDRIA, Va. – Twin brothers Muneeb and Sohaib Akhter, 23, of Springfield, were sentenced today for conspiracy to commit wire fraud, conspiracy to access a protected computer without authorization, and conspiracy to access a government computer without authorization. Muneeb Akhter was also sentenced for accessing a protected computer without authorization, making a false statement, and obstructing justice. Muneeb Akhter was sentenced to 39 months in prison, and Sohaib Akhter was sentenced to 24 months in prison. Each man was also sentenced to three years of supervised release.
“The Akhter brothers’ misuse of their computer skills harmed numerous individuals and companies, and their efforts to gain clandestine access to State Department systems represented a threat to national security,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “Electronic barriers are no less real, or legitimate, than physical ones. This prosecution sends a clear message to anyone else attempting to weaken the cybersecurity of institutions or use computers to commit crimes.”
The Akhter brothers were indicted by a federal grand jury on April 30, 2015, and pleaded guilty on June 26, 2015. According to court documents, beginning in or about March 2014, Muneeb Akhter hacked into the website of a cosmetics company and stole thousands of its customers’ credit card and personal information. The Akhter brothers and co-conspirators used the stolen information to purchase goods and services, including flights, hotel reservations, and attendance at professional conferences. Muneeb Akhter also provided stolen information to an individual he met on the “dark net,” who sold the information to other dark-net users and gave Akhter a share of the profits.
In a separate scheme, the Akhter brothers and co-conspirators engaged in a series of computer intrusions and attempted computer intrusions against the U.S. Department of State to obtain sensitive passport and visa information and other related and valuable information about State Department computer systems. In or around February 2015, Sohaib Akhter used his contract position at the State Department to access sensitive computer systems containing personally identifiable information belonging to dozens of co-workers, acquaintances, a former employer, and a federal law enforcement agent investigating his crimes.
Sohaib Akhter later devised a scheme to ensure that he could maintain perpetual access to desired State Department systems. Sohaib Akhter, with the help of Muneeb Akhter and co-conspirators, attempted to secretly install an electronic collection device inside a State Department building. Once installed, the device could have enabled Sohaib Akhter and co-conspirators to remotely access and collect data from State Department computer systems. Sohaib Akhter was forced to abandon the plan during its execution when he broke the device while attempting to install it behind a wall at a State Department facility in Washington, D.C.
Furthermore, beginning in or about November 2013, Muneeb Akhter was performing contract work for a private data aggregation company located in Rockville, Maryland. He hacked into the company’s database of federal contract information so that he and his brother could use the information to tailor successful bids to win contracts and clients for their own technology company. Muneeb Akhter also inserted codes onto the victim company’s servers that caused them to vote for Akhter in an online contest and send more than 10,000 mass emails to students at George Mason University, also for the purpose of garnering contest votes.
In or about October 2014, Muneeb Akhter lied about his hacking activities and employment history on a government background investigation form while successfully obtaining a position with a defense contractor. Furthermore, in or about March 2015, after his arrest and release pending trial, Muneeb Akhter obstructed justice by endeavoring to isolate a key co-conspirator from law enforcement officers investigating the conspirators’ crimes. Among other acts, Muneeb Akhter drove the co-conspirator to the airport and purchased a boarding pass, which the co-conspirator used to travel out of the country to the Republic of Malta. When the co-conspirator returned to the United States, Muneeb Akhter continued to encourage the co-conspirator to avoid law enforcement agents.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Charles R. Taylor, Acting Chief Security Officer, Department of Homeland Security (DHS); Gregory B. Starr, Assistant Secretary for the U.S. Department of State’s Bureau of Diplomatic 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 T.S. Ellis, III.
This case was investigated by the Internal Security and Investigations Division of the Office of the Chief Security Officer, DHS Headquarters; the U.S. Department of State’s Bureau of Diplomatic Security, and FBI’s Washington Field Office. Special Assistant U.S. Attorneys John Taddei and Jennifer Clarke 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-124.
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MS-13 Gang Leader Sentenced to 30 Months in PrisonRead the Press Release
ALEXANDRIA, Va. – Jose Eduardo Avalos, 30, of Charlotte, North Carolina, was sentenced today to 30 months in prison, followed by two years of supervised release for illegal re-entry into the United States after conviction of an aggravated felony.
Avalos, an El Salvadoran national, pleaded guilty on May 21, 2015. According to court documents, Avalos joined the Mara Salvatrucha (MS-13) criminal gang at age 13, and has identified his rank within the gang as a “nation leader”. He has illegally entered the United States three times, and has twice been removed following criminal convictions. His first removal in 2004 came after a being convicted of carnal knowledge of a child 13 to 15 years old; while his second removal came in 2011 after being convicted of illegal re-entry and possession of a stolen firearm. Avalos will be removed from the U.S. for a third time following the completion of his prison sentence.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Yvonne Evans, Field Office Director of U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations (ERO), made the announcement after sentencing by U.S. District Judge Gerald Bruce Lee. Special Assistant U.S. Attorneys William A. Glaser and Nima R.T. Binara 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-138
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Lithuanian Woman Sentenced to 10 Years for Sex Trafficking of a ChildRead the Press Release
ALEXANDRIA, Va. – Giedre Ruseckaite, 24, a Lithuanian citizen who has resided in Nevada, was sentenced today to 120 months in prison for sex trafficking of a child.
Ruseckaite pleaded guilty on June 26, 2015. According to court documents, Ruseckaite was the girlfriend and most trusted assistant of Lenny Paul Haskins, 34, of Las Vegas, who was recently sentenced to 40 years in prison for sex trafficking of a child. She assisted Haskins in sex trafficking and prostituting two teenage girls, one of whom was 15 years old and the other was 17 years old. Haskins frequently provided women and girls who were prostituted with various drugs, including marijuana, ecstasy, liquor, a drug known as “molly,” a drug concoction known as “lean,” and other controlled substances so that they could work longer without sleep.
While Haskins was incarcerated he continued to run his sex trafficking business from jail. With the assistance of Ruseckaite, proceeds from the sex trafficking conspiracy were forwarded to Haskins while he was in jail so that he could purchase items and make telephone calls. Because jail calls are monitored, Haskins would give instructions via code words. Ruseckaite helped Haskins operate his venture in numerous ways, including assisting in the rental of hotel rooms where victims were prostituted; assisting in the collection of prostitution proceeds from victims; transporting victims; purchasing and distributing condoms to victims; advising the victims on how to perform sex acts; and assisting in the creation and posting of prostitution advertisements on Internet websites.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; and Colonel Edwin C. Roessler, Jr., Chief of the Fairfax County Police Department, made the announcement after sentencing by U.S. District Judge Claude M. Hilton.
This case was investigated by the FBI’s Washington Field Office with substantial assistance from the Fairfax County Police Department and the Herndon Police Department. Assistant U.S. Attorney Michael Frank 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-157.
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D.C. Man Pleads Guilty to 180 mph Car ChaseRead the Press Release
ALEXANDRIA, Va. – Omar T. Butler, 30, of Washington, D.C., pleaded guilty today to charges relating to a 28 mile car chase in June 2015, in which he reached speeds of 180 mph on roads in Virginia, Washington, D.C., and Maryland.
Butler pleaded guilty without a written plea agreement or agreed statement of facts. The government’s fact proffer noted that at approximately 12:35 a.m. on June 10, 2015, Butler led U.S. Park Police officers on a 28-mile pursuit during which Butler nearly hit and killed two officers. U.S. Park Police had attempted to stop his vehicle for speeding on the George Washington Memorial Parkway in the area of Spout Run, however, Butler ignored the emergency lights and sirens and fled through Virginia, D.C., and Maryland, reaching a top speed of approximately 180 mph with several dozen federal and state law enforcement officers in pursuit. Butler was ultimately arrested at a gas station in Bryans Road, Maryland, after pulling over to refuel his vehicle.
Butler was indicted by a federal grand jury on Aug. 6, 2015. He faces a maximum penalty of five years in prison when sentenced on Jan. 22, 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 Robert D. MacLean, Chief of the U.S. Park Police, made the announcement after the plea was accepted by U.S. District Judge Liam O’Grady. Special Assistant U.S. Attorney Timothy Belsan and Assistant United States Attorney Gene Rossi 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-229.
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Stafford Man Sentenced to 15 Years in Child Pornography CaseRead the Press Release
RICHMOND, Va. – Justin Fox, 31, of Stafford, was sentenced today to 180 months in prison for attempted production of child pornography.
Fox pleaded guilty on May 27, 2015. According to court documents, Fox admitted he engaged in online messaging with a 13-year-old boy. During those conversations, Fox portrayed himself as a young female and asked the boy to create and send child pornography via online messenger. After the boy sent pornographic images to Fox, Fox continued to ask for more, calling the boy his slave. A search warrant executed at Fox’s residence and a forensic search of Fox’s electronic devices allowed law enforcement to identify two additional victims who Fox attempted to entice to produce child pornography.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by U.S. District Judge John Gibney, Jr. Assistant U.S. Attorney Heather L. Hart 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-47.
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Newport News Men Guilty of Fraud and ID Theft in Card Cracking SchemeRead the Press Release
NEWPORT NEWS, Va. – Preston Frazier, 22, and Keandre Williams, 24, both of Newport News, pleaded guilty today to charges of conspiracy to commit bank fraud and aggravated identity theft.
In statements of facts filed with their respective plea agreements, Frazier and Williams admitted to conspiring to obtain United States currency from several financial institutions by depositing worthless financial instruments into accounts belonging to other individuals and then conducting debit card transactions at ATM and retail locations throughout Hampton Roads. Frazier and Williams each admitted to recruiting account holders of several financial institutions via social media to provide access to their debit cards and personal identification numbers for a period of time in exchange for monetary payment. Frazier, Williams, and other co-conspirators were recorded by video surveillance equipment at ATM and retail locations while engaging in what they termed the “card cracking” scheme.
Frazier, Williams, and two others were indicted by a federal grand jury on June 10, 2015. Frazier and Williams each faces a mandatory minimum penalty of two years in prison to run consecutive to a maximum possible penalty of 30 years in prison. Both will be sentenced on Jan. 11, 2015. Charges remain pending against the remaining two co-conspirators. The minimum and 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; Doug Mease, Special Agent in Charge of the U.S. Secret Service’s Richmond Field Office; David G. Bowers, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; and Richard W. Myers, Chief of Newport News Police, made the announcement after the pleas were accepted by U.S. District Judge Mark S. Davis. Assistant U.S. Attorneys Kaitlin C. Gratton and Brian J. Samuels are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:15cr43.
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Former Business Owner and Son Sentenced for Arson and Insurance FraudRead the Press Release
ALEXANDRIA, Va. – Lawrence Wayne Reese, 56, and his son, Lance Terrell Reese, 28, both from Fort Belvoir, were sentenced today for their roles in burning down the Sub Shop, a business Lawrence Reese owned in Lorton.
Lawrence Reese was sentenced to 15 years in prison, five years of supervised release, and ordered to pay $34,000 in restitution. Lance Reese was sentenced to five years in prison, two years of supervised release, and ordered to pay $34,000 in restitution.
Lawrence and Lance Reese were convicted at trial on June 19, 2015, for their respective roles in the Feb. 6, 2013, arson of the Sub Shop. Lawrence Reese owned and operated the business. Through over 500 hours of financial analysis performed by an ATF Senior Forensic Auditor, the United States proved at trial that the business was financially insolvent. Specifically, Lawrence Reese’s business reported losses of approximately $60,000 on its 2012 U.S. income tax return. Due to financial strain, Lawrence Reese recruited his son and Horace Thompson to burn down the Sub Shop. Thompson was convicted of arson at trial on Oct. 3, 2013, and was sentenced on Dec. 19, 2013, to five years in prison, two years of supervised release, and ordered to pay $34,000 in restitution.
The evidence presented at trial established that Lawrence Reese and Thompson, through the use of the accelerant gasoline, caused an explosion followed by a fire at the Sub Shop. The fire destroyed the business and left Lawrence Reese and Thompson badly burned. Following the fire, Lawrence Reese submitted a claim for approximately $200,000 to his insurance company. His submission of this claim, for an intentionally set fire, resulted in his commission of multiple counts of mail and wire fraud.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police; 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 Liam O’Grady.
This case was investigated by the Fairfax County Police Department’s Homicide Unit and the Arson Group in ATF’s Washington Field Division, with special assistance from ATF’s Financial Investigative Services Division. Assistant U.S. Attorneys Michael Rich and Zachary Terwilliger 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-32.
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Black Hat Bandit Gunman Pleads Guilty to Bank Robbery ChargesRead the Press Release
ALEXANDRIA, Va. – Thomas Anthony George, 65, of Washington, D.C., pleaded guilty today to two counts of using a firearm during the commission of armed bank robberies.
According to the statement of facts filed with the plea agreement, 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.
George was indicted by a federal grand jury on March 19, 2015. George faces a mandatory minimum penalty of 32 years in prison and a maximum penalty of life in prison when sentenced on Dec. 17, 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; Vincent H. Cohen, Jr., 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 the plea was accepted by U.S. District Judge James C. Cacheris. Assistant U.S. Attorneys Tobias D. Tobler and Jonathan L. Fahey are prosecuting 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.
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New York Man Pleads Guilty to Cocaine ChargesRead the Press Release
NORFOLK, Va. – Luis Perdomo, 27, of New York, New York, pleaded guilty today to conspiracy to distribute and possess with intent to distribute 5 kilograms or more of cocaine and 1 kilogram or more of heroin.
In a statement of facts filed with the plea agreement, Perdomo and others obtained kilogram quantities of cocaine and heroin from a source of supply in the New York City area and transported the cocaine and heroin to a stash house in Norfolk prior to its distribution. Proceeds from the drug distributions were then transported back to New York City in various automobiles equipped with secret compartments. A traffic stop in Maryland on March 31, 2015, resulted in a search of Perdomo’s car and the discovery of $280,000 cash in three secret compartments inside the car. Police also found a drug ledger and several phones belonging to Perdomo. One of the phones contained a video recording of Perdomo handling several kilogram sized packages of a white powdery substance. Another video on the same phone contained GPS data for a residence in Norfolk, which police later determined was a stash house. Surveillance in April and May 2015 showed that Perdomo frequented the stash house in Norfolk. GPS tracking devices were put in place on the vehicles at the stash house to track their drive to New York. When police stopped the vehicles, more drugs and secret compartments were discovered.
Perdomo was indicted by a federal grand jury on July 9, 2015. Perdomo faces a maximum penalty of life in prison when sentenced on Jan. 13, 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 Homeland Security Investigations Washington, D.C. Field Office, made the announcement after the plea was accepted by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorney Darryl Mitchell 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-82.
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