Eastern District of Virginia
Press releases recorded for this federal judicial district.
Army Contracting Official Charged in Pentagon Bribery SchemeRead the Press Release
ALEXANDRIA, Va. – James Glenn Warner, 44, of Manassas, Virginia, was arrested today and charged with soliciting bribes from executives working for a private company on a contract that Warner managed out of the Pentagon.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; Robert E. Craig, Special Agent in Charge, Mid Atlantic Field Office, Defense Criminal Investigative Service; and Frank Robey, Director, Major Procurement Fraud Unit, 701st Military Police Group, U.S. Army Criminal Investigation Command, made the announcement after Warner’s initial appearance before U.S. Magistrate Judge John F. Anderson.
Warner faces a maximum penalty of 15 years in prison and up to a $1.5 million fine, 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. Criminal complaints are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
According to the affidavit in support of the criminal complaint, in October 2014, Warner made arrangements to meet with two executives of Company A, a Virginia-based company which held a five-year contract with the Department of the Army worth up to $120 million. At the meeting, which took place at a restaurant located in the Pentagon Centre in Arlington, Virginia, Warner instructed the two executives to communicate with him by typing messages into his cellular telephone, which was passed around the table. As the affidavit alleges, Warner then passed a menu to the two executives. Inside the plastic covering for the center section of the menu was a piece of paper which outlined a bribe and extortion solicitation, suggesting that if Company A paid $500,000 it would secure a contract renewal from the Department of the Army and that alleged damaging information about Company A would be destroyed. According to the affidavit, the Company A executives declined Warner’s solicitation, reported the conduct and began cooperating with law enforcement agents. Acting at the direction of law enforcement, a Company A executive then met with Warner on four subsequent occasions, paying Warner a total of $50,000 cash bribes out of the total $500,000 solicited by Warner.
This case was investigated by the FBI’s Washington Field Office, the Defense Criminal Investigative Service, and the U.S. Army Criminal Investigative Command. Assistant U.S. Attorneys Mark D. Lytle and Kosta S. Stojilkovic are prosecuting the case on behalf of the United States.
Any person who believes they may have information regarding public corruption in the Northern Virginia area is encouraged to call the FBI’s Northern Virginia Public Corruption Hotline at 703-686-6225.
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-39.Tweet
King George Man Sentenced to 10 Years for Enticing Minors to Produce Child Pornography on CellphoneRead the Press Release
RICHMOND, Va. – Dane Scott Mihlon, Jr., 26, of King George, Virginia, was sentenced today to 10 years in prison, followed by 15 years of supervised release for using the internet on his cellphone to entice at least 8 minors to produce child pornography.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and FBI SAC Adam S. Lee, made the announcement after sentencing by U.S. District Judge John A. Gibney.
Mihlon pled guilty on October 2, 2014, to coercion and enticement of a minor, in violation of 18 U.S.C. § 2422(b). According to court documents, he admitted using a variety of applications on his cellphone to entice 8 juvenile females, ranging from 12 to 16 years old, located across the country to produce sexually explicit pictures via the internet. On one occasion, Mihlon enticed a 15 year old juvenile victim living in Oregon to produce at least five images of her naked, with one image depicting her engaged in a sex act.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Erik S. Siebert is prosecuting the case on behalf of the United States.
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. 3:14cr98-JAG.Tweet
King George Man Sentenced to 10 Years for Enticing Minors to Produce Child Pornography on CellphoneRead the Press Release
RICHMOND, Va. – Dane Scott Mihlon, Jr., 26, of King George, Virginia, was sentenced today to 10 years in prison, followed by 15 years of supervised release for using the internet on his cellphone to entice at least 8 minors to produce child pornography.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and FBI SAC Adam S. Lee, made the announcement after sentencing by U.S. District Judge John A. Gibney.
Mihlon pled guilty on October 2, 2014, to coercion and enticement of a minor, in violation of 18 U.S.C. § 2422(b). According to court documents, he admitted using a variety of applications on his cellphone to entice 8 juvenile females, ranging from 12 to 16 years old, located across the country to produce sexually explicit pictures via the internet. On one occasion, Mihlon enticed a 15 year old juvenile victim living in Oregon to produce at least five images of her naked, with one image depicting her engaged in a sex act.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Erik S. Siebert is prosecuting the case on behalf of the United States.
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. 3:14cr98-JAG.Tweet
Federal Court Shuts Down Spyware Product PermanentlyRead the Press Release
ALEXANDRIA, Va. – Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, announced today that U.S. District Judge Leonie M. Brinkema has put a permanent stop to the advertising, marketing, or sale of the spyware application (or “app”) called StealthGenie. The court preliminarily shut down the app in September, when it issued a temporary restraining order. The court has now permanently enjoined use of and access to the app.
Before it was shut down the StealthGenie app could be installed on a variety of smartphones and operated without the user’s knowledge. It allowed the purchaser of StealthGenie software to: monitor the smartphone user’s incoming and outgoing phone calls; intercept calls in real time without the knowledge of the smartphone user; monitor the smartphone user’s email and text messages; and activate the phone without the user’s knowledge so conversations within earshot of the smartphone could be monitored. All of this could be done without the knowledge of the smartphone user.
In September, the United States filed a civil lawsuit against app creator Hammad Akbar, of Lahore, Pakistan, asking the court to order that the app be shut down immediately, temporarily, and then permanently. Mr. Akbar was arrested in Los Angeles, California, on September 27, 2014, for violating a federal law that prohibits the manufacturing, sale, or possession of any device whose primary purpose is the surreptitious interception of wire, oral, or electronic communications. In November 2014, Akbar pled guilty to related charges in the Eastern District of Virginia. The law also allows the United States to ask a court to prohibit the production, use, or possession of the device.
The court’s order is the result of a coordinated effort by Assistant U.S. Attorneys Kevin Mikolashek and Jay Prabhu of the U.S. Attorney’s Office for the Eastern District of Virginia; William Hall of the United States Department of Justice Criminal Division; and the Federal Bureau of Investigation.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14cv1273 and 1:14cr276.Tweet
Former CIA Officer Convicted of Leaking Classified Information and Obstruction of JusticeRead the Press Release
Printer Friendly Disclosed classified information about a clandestine operational program designed to undermine Iran’s nuclear weapons programALEXANDRIA, Va. – Jeffrey A. Sterling, 47, of O’Fallon, Missouri, was convicted today by a federal jury on charges of disclosing national defense information and obstructing justice.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Attorney General Eric Holder; and FBI Director James Comey made the announcement after the verdict was accepted by U.S. District Judge Leonie M. Brinkema.
“This is a just and appropriate outcome,” said Attorney General Holder. “The defendant’s unauthorized disclosures of classified information compromised operations undertaken in defense of America’s national security. The disclosures placed lives at risk. And they constituted an egregious breach of the public trust by someone who had sworn to uphold it. As this verdict proves, it is possible to fully prosecute unauthorized disclosures that inflict harm upon our national security without interfering with journalists' ability to do their jobs. And I want to thank the investigators, prosecutors, and support staff who made this outcome possible for their relentless efforts in advancing a complex case that spanned multiple years.”
"He violated his sworn duty to protect our nation's secrets and he betrayed our country,” said FBI Director Comey. “The FBI will continue to pursue these cases vigorously."
“Over 10 years ago a disgruntled former CIA employee disclosed extremely sensitive classified information to a reporter who used the information in a book,” said U.S. Attorney Boente. “That classified information was critical to our national defense, and releasing it was illegal and went against Mr. Sterling’s professional commitments to the CIA. Mr. Sterling’s vindictive and careless choices ultimately led us here today and to this unanimous verdict. I would like to thank the trial team and our partners at the FBI’s Washington Field Office and the Central Intelligence Agency for their hard work and commitment to this case.”
Sterling was indicted on Dec. 22, 2010, arrested on Jan 6, 2011, and will be sentenced on April 24, 2015.
According to court records and evidence at trial, Sterling was employed by the CIA from May 1993 to January 2002. From November 1998 through May 2000, he was assigned to a classified clandestine operational program designed to undermine the Iranian nuclear weapons program. He was also the operations officer assigned to handle a human asset associated with that program, a person identified at trial as Merlin. Sterling was reassigned in May 2000, at which time he was no longer authorized to receive or possess classified documents concerning the program or the individual.
In connection with his employment, Sterling, who is a lawyer, signed various security, secrecy and non-disclosure agreements in which he agreed never to disclose classified information to unauthorized persons, acknowledged that classified information was the property of the CIA, and also acknowledged that the unauthorized disclosure of classified information could constitute a criminal offense. These agreements also set forth the proper procedures to follow if Sterling had concerns that the CIA had engaged in any “unlawful or improper” conduct that implicated classified information. These procedures permit such concerns to be addressed while still protecting the classified nature of the information. The media was not an authorized party to receive such classified information.
In August 2000, Sterling pursued administrative and civil actions against the CIA. Evidence at trial showed that Sterling, in retaliation for the CIA’s refusal to settle those actions on terms favorable to him, disclosed information concerning the classified operational program and the human asset to a New York Times reporter working on an unpublished article in early 2003 and a book the reporter published in January 2006. Sterling’s civil and administrative claims were ultimately dismissed by the court.
Evidence demonstrated that in February and March 2003, Sterling made various telephone calls to the reporter’s residence and e-mailed a newspaper article about the weapons capabilities of a certain country that was within Sterling’s previous clandestine operational assignment. While the possible newspaper article containing the classified information Sterling provided was ultimately not published in 2003, evidence showed that Sterling and the reporter remained in touch from December 2003 through November 2005 via telephone and e-mail. In January 2006, the reporter published a book that contained classified information about the program and the human asset.
Evidence at trial showed that Sterling was aware of a grand jury investigation into the matter by June 2006 when he was served a grand jury subpoena for documents relating to the reporter’s book. Nevertheless, between April and July 2006, Sterling deleted the e-mail containing the classified information he had sent from his account in an effort to obstruct the investigation.
This case was investigated by the FBI’s Washington Field Office with assistance in the arrest of the FBI’s St. Louis Field Office. Assistant U.S. Attorneys James L. Trump and Dennis Fitzpatrick, along with Trial Attorney Eric G. Olshan of the Criminal Division’s Public Integrity Section prosecuted the case on behalf of the United States.
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. 1:10-cr-485.Tweet
Second Nurses Aide Sentenced for Conspiracy to Defraud the GovernmentRead the Press Release
NORFOLK, Va. – Festus Ighalo, 37, of Virginia Beach, Virginia, was sentenced today to 57 months in prison for conspiracy to defraud the government.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Thomas J. Kelly, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS-CI); and Trevor Nelson, Assistant Special Agent in Charge, Treasury Inspector General for Tax Administration (TIGTA), made the announcement after sentencing by United States District Judge Arenda Wright Allen.
Ighalo pleaded guilty on October 8, 2013. According to court documents, Ighalo and his codefendant Emmanuel Effiong, both originally from Nigeria and now naturalized U.S. citizens, were formerly nurses aides at Sentara’s Virginia General Hospital in Virginia Beach. They used their positions there to obtain Personally Identifiable Information (PII), such as dates of birth and social security numbers, from thousands of patients mostly located in the Tidewater area. Then, with the help of others located elsewhere in the U.S. and Nigeria, that information was used to submit fraudulent federal tax returns with the Internal Revenue Service and receive tax refunds in the patients’ names. Effiong was sentenced to 81 months for conspiracy and aggravated identity theft on January 10, 2014.
This case was investigated by IRS Criminal Investigation and the Treasury Inspector General for Tax Administration (TIGTA). Assistant United States Attorney Elizabeth M. Yusi prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Couple Sentenced for Sex Trafficking A 15-Year-Old GirlRead the Press Release
ALEXANDRIA, Va. – Stephanie Olean Chapman, 28, of Fairfax, Va., and Ronnie Pierre Holmes, 30, with no fixed address, were sentenced today to 132 and 168 months in prison, respectively, followed by five years of supervised release, for charges stemming from the prostitution of a 15-year-old girl throughout northern Virginia, Maryland and Washington, D.C.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Valerie Parlave, 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 United States District Judge Liam O’Grady.
Holmes pleaded guilty on June 25, 2013 to a criminal information charging him with conspiracy to commit sex trafficking of a child. Chapman was convicted by a federal jury on Oct. 17, 2013 of conspiracy to commit sex trafficking of a child, sex trafficking of a child, and interstate transportation of a minor for the purposes of prostitution.
According to court documents and evidence adduced at Chapman’s trial, between Feb. 27, 2013 and March 12, 2013, Chapman and her boyfriend, Holmes, met a 15-year-old girl and recruited her to be a prostitute for them. During that time, Chapman and Holmes took sexually suggestive photographs of the girl, sent the photographs to potential customers, posted the photographs on Backpage.com, drove the girl to meet with customers at locations in Virginia, Maryland and the District of Columbia, and took half of the money paid to the girl after she engaged in sex with customers for money.
This case was investigated by the Federal Bureau of Investigation and the Fairfax County Police Department. Special Assistant United States Attorney Stacey Luck and Assistant United States Attorney Michael J. Frank prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Twin Brothers Each Sentenced to 13 Years on Drug and Firearm ChargesRead the Press Release
NORFOLK, Va. – Matthew Vincent Deparasis, 30, of Virginia Beach, was sentenced today to 156 months in prison, followed by five years of supervised release for maintaining drug-involved premises and on firearm charges.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Karl C. Colder, Special Agent in Charge for Drug Enforcement Administration’s Washington Office, made the announcement after sentencing by U.S. District Judge Arenda L. Wright Allen.
Deparasis pled guilty on September 26, 2014. According to court documents, Deparasis and his twin brother, Nicholas, sold heroin, cocaine, crack cocaine, and firearms from various drug-involved premises, including an 11th Street apartment in Virginia Beach. The Deparasis brothers used and maintained the various premises from February of 2010 to approximately May of 2014.
Nicholas Deparasis pled guilty on September 25, 2014 and was sentenced on January 21, 2015, to 96 months in prison on the drug conspiracy charge, and sentenced to an additional 60 months in prison for the charge of possessing a firearm in furtherance of, and using and carrying firearms during and in relation to, one or more drug trafficking crimes.
This case was investigated by the Drug Enforcement Administration, with the assistance of the Virginia Beach Police Department. Assistant U.S. Attorney Kevin Comstock prosecuted the case on behalf of the United States. 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-85Tweet
Fairfax Man Indicted for Production of Child PornographyRead the Press Release
ALEXANDRIA, Va. – Padraic Collins, 46, of Fairfax, Va., was indicted today by a federal grand jury in the Eastern District of Virginia for production of child pornography after Collins allegedly was found to be in possession of child pornography videos while crossing the border into Canada.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Scot R. Rittenberg, Acting Special Agent in Charge of U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), Washington, made the announcement after the grand jury returned the indictment to United States Magistrate Judge T. Rawles Jones, Jr.
Collins faces a mandatory minimum of 15 years in prison and a maximum of 30 years in prison if convicted.
According to court documents, HSI Washington received information from HSI Toronto regarding Collins, a Fairfax resident, at the Lansdowne, Canada Port of Entry. Collins was arrested by the Canadian Border Services Agency for importing and possessing child pornography files on a handheld video camera and a laptop. The videos allegedly show Collins engaging in sexual activity with an underage girl. HSI Washington, in coordination with HSI Toronto and the Ottawa Provincial Police, determined the identity of the 11-year-old female in the videos. The victim identified Collins as her abuser and confirmed the details of the sexual abuse, including that it took place in Springfield, Va.
The investigation was conducted by HSI Washington, with assistance from HSI Toronto, HSI Buffalo, U.S. Customs and Border Protection, the Ottawa Provincial Police and the U.S. Marshals Service. Special Assistant United States Attorney Alicia J. Yass, a Trial Attorney with the Child Exploitation and Obscenity Section of the U.S. Justice Department’s Criminal Division, is prosecuting the case on behalf of the United States.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
This prosecution is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
Washington, DC Drug Dealer Pleads Guilty to Heroin DistributionRead the Press Release
Defendant sold heroin that resulted in three overdose deaths in northern Virginia
ALEXANDRIA, Va. – Eugene Asomani Williams, also known as “Shine,” 35, of Washington, DC, pleaded guilty today to conspiracy to distribute one kilogram or more of heroin and to using and possessing a firearm during and in furtherance of drug trafficking.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, made the announcement after the plea was accepted by United States District Judge Leonie M. Brinkema.
Williams was indicted on November 21, 2013 by a federal grand jury on the charges to which he entered guilty pleas. Williamsfaces a mandatory minimum term of 15 years of incarceration and a maximum penalty of life in prison when he is sentenced on April 18, 2014.
In a statement of facts filed with the plea agreement, Williams admitted to selling over one kilogram of heroin in the Washington metropolitan area since 2004. Williams further admitted that heroin he distributed in 2012 and 2013 led to three overdose deaths in Virginia. As detailed in the indictment and statement of facts, in January 2012, an Army Private stationed at Fort Belvoir died of an overdose after using heroin sold by the defendant. In February 2012 and April 2013, two other individuals died as a result of using heroin sold by the defendant.
The defendant also admitted to regularly carrying a firearm in furtherance of his heroin trafficking activities. The defendant stated that the firearm he used most recently was a .38 caliber revolver. Additionally, DEA seized .45 caliber ammunition from the defendant’s home during the execution of a search warrant in September 2013.
This case was investigated by the DEA’s Washington Field Division, with assistance from the U.S. Army’s Criminal Investigation Division and the Fairfax County Police Department. Assistant United States Attorneys Michael P. Ben’Ary and Julia K. Martinez are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
Stafford Woman Sentenced to Three Years in Prison for Drug ConspiracyRead the Press Release
ALEXANDRIA, Va. – Patricia Mae Huntt, 52, of Stafford, Virginia, was sentenced today to 36 months in prison, followed by three years of supervised release for conspiracy to distribute controlled substances.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; and Charles E. Jett, Stafford County Sheriff, made the announcement after sentencing by U.S. District Judge James C. Cacheris.
Huntt pleaded guilty on November 4, 2014. According to court documents, Huntt is a former patient of Dr. Nibedita Mohanty, a Stafford, Virginia, medical doctor who was indicted on July 24, 2014, on charges of conspiracy to distribute controlled substances, distribution of controlled substances, aiding and abetting health care fraud, and aiding and abetting money laundering. Mohanty is scheduled for a jury trial on February 24, 2015.
Beginning in January 2010, Huntt and other conspirators began seeing Dr. Mohanty to obtain large quantities of oxycodone and Dilaudid to distribute for profit. Huntt admitted to selling approximately 3,600 oxycodone pills and 1,200 Dilaudid pills over the previous year. Throughout the conspiracy Huntt was personally involved in the distribution of an amount of oxycodone and Dilaudid that is equivalent to at least 700 kilograms but less than 1,000 kilograms of marijuana.
The case was initiated and investigated by the FBI’s Washington Field Office, the FBI’s Richmond Field Office, and the Stafford County Sheriff’s Office. Assistant U.S. Attorney Gene Rossi and Special Assistant U.S. Attorneys Jennifer Ballantyne and Nicole Grosnoff 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. 1:14-cr-190.Tweet
New York Man Sentenced to 175 Months for Leadership Role in Mortgage Office Burglary and Fraud SchemeRead the Press Release
NEWPORT NEWS, Va. – Jeffrey Washington, 36, of New York, NY, was sentenced today to 175 months in prison, followed by five years of supervised release, for conspiracy to commit bank fraud and aggravated identity theft. The defendant was ordered to pay restitution in the amount of $254,995.71.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, made the announcement after sentencing by U.S. District Judge Arenda L. Wright Allen.
Washington plead guilty on August 28, 2014. According to court documents, Washington admitted his involvement in a multi-defendant ring of individuals that burglarized Wells Fargo mortgage offices throughout NY, NJ, CT and MD in 2012 -2013. The defendants stole over 1,800 mortgage files that were then used in a variety of bank customer impersonation and retail credit fraud schemes, targeting various banks and retailers. Washington recruited individuals to go into banks, impersonate customers and remove funds via setting up business accounts and transferring funds from the accounts of bank customers. Washington and other defendants traveled from NY to EDVA on multiple occasions throughout 2012 and 2013. Following the arrest of a co-defendant in August, 2013, the defendant continued to burglarize mortgage offices until his arrest in May, 2014. Washington was on probation at the time of the offense. Thus far, three defendants have pled guilty and a fourth remains pending trial.
This case was investigated by United States Secret Service and United States Postal Inspection Service. Assistant U.S. Attorney Brian J. Samuels is prosecuting the case on behalf of the United States.
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. 4:14CR32.Tweet
Former Virginia Governor and Former First Lady Indicted on Public Corruption and Related ChargesRead the Press Release
RICHMOND, Va. – A federal grand today returned a 14-count indictment against former Virginia Governor Robert F. McDonnell and former First Lady Maureen G. McDonnell for allegedly participating in a scheme to violate federal public corruption laws.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Mythili Raman, Acting Assistant Attorney General for the Justice Department’s Criminal Division; Jeffrey C. Mazanec, Special Agent in Charge of the FBI’s Richmond Field Office; Richard Weber, Chief of the Internal Revenue Service-Criminal Investigation (IRS-CI); and Colonel W. Steven Flaherty, Virginia State Police Superintendent, made the announcement.
The indictment, returned in the Eastern District of Virginia, charges Robert McDonnell and Maureen McDonnell, both 59 and of Glen Allen, Va., with one count of conspiracy to commit honest-services wire fraud; three counts of honest-services wire fraud; one count of conspiracy to obtain property under color of official right; six counts of obtaining property under color of official right; and one count of making false statements to a federal credit union. Robert McDonnell is also charged with an additional count of making a false statement to a financial institution, and Maureen McDonnell is charged with one count of obstruction of an official proceeding.
“I thank the Assistant U.S. Attorneys, FBI, Virginia State Police and the Internal Revenue Service-Criminal Investigation for their exceptional efforts in the investigation of this case,” said Acting U.S. Attorney Boente. “We will continue to work tirelessly with our law enforcement partners to investigate and prosecute public corruption.”
“Today’s charges represent the Justice Department’s continued commitment to rooting out public corruption at all levels of government,” said Acting Assistant Attorney General Raman. “Ensuring that elected officials uphold the public’s trust is one of our most critical responsibilities.”
“One of the most important investigative responsibilities with which the FBI is tasked is ensuring that the integrity of our elected public officials has not been compromised,” said FBI SAC Mazanec. “The Richmond Division of the FBI and our law enforcement partners have diligently worked this lengthy, detailed and sensitive matter. I want to thank all those who have worked very hard and with great care on this investigation.”
“The state police and FBI agents assigned to this case have devoted an extensive amount of time and effort to this matter,” said Colonel Flaherty. “They are to be commended for their professionalism, objectivity and dedication to duty in conducting this highly complex and sensitive investigation.”
“Public officials hold positions of trust and must accept the transparency and accountability that our laws require and their constituents expect,” said IRS-CI Chief Weber. “IRS-CI stands committed to investigating those officials. This case should serve as a strong warning to those who might consider similar behavior. No one is above the law and everyone is accountable for their misdeeds.”
According to the indictment, from April 2011 through March 2013, the McDonnells participated in a scheme to use the former governor’s official position to enrich themselves and their family members by soliciting and obtaining payments, loans, gifts and other things of value from Star Scientific, a Virginia-based corporation, and “JW,” then Star Scientific’s chief executive officer. The McDonnells obtained the things of value in exchange for the former governor performing official actions on an as-needed basis to legitimize, promote and obtain research studies for Star’s products, including the dietary supplement Anatabloc®.
As alleged in the indictment, the McDonnells obtained from JW more than $135,000 in direct payments as gifts and loans, thousands of dollars in golf outings, and numerous other things of value. As part of the alleged scheme, the official actions that Robert McDonnell performed included arranging meetings for JW with Virginia government officials, hosting and attending events at the Governor’s Mansion designed to encourage Virginia university researchers to initiate studies of Star’s products and to promote Star’s products to doctors for referral to their patients, contacting other Virginia government officials as part of an effort to encourage Virginia state research universities to initiate studies of Star’s products, and promoting Star’s products and facilitating its relationships with Virginia government officials.
The indictment further alleges that the McDonnells attempted to conceal the things of value received from JW and Star to hide the nature and scope of their dealings with JW from the citizens of Virginia by, for example, routing things of value through family members and corporate entities controlled by the former governor to avoid annual disclosure requirements. Moreover, the indictment alleges that on Oct. 3, 2012, Robert McDonnell sent loan paperwork to a lender that did not disclose the loans from JW, and on Feb. 1, 2013, the McDonnells signed loan paperwork submitted to another lender that did not disclose the loans. Similarly, the indictment alleges that on Feb. 15, 2013, Maureen McDonnell was questioned by law enforcement about the loans and made false and misleading statements regarding the defendants’ relationship with JW. Three days later, on Feb. 18, 2013, Robert McDonnell is alleged to have sent loan paperwork to one of the previously mentioned lenders disclosing the loans from JW. Additionally, after her interview with law enforcement, Maureen McDonnell allegedly wrote a handwritten note to JW in which she falsely attempted to make it appear that she and JW had previously discussed and agreed that she would return certain designer luxury goods rather than keep them permanently, all as part of an effort to obstruct, influence and impede the investigation.
An indictment is merely an accusation, and the defendants are presumed innocent unless and until proven guilty.
If convicted, the McDonnells could each face a maximum statutory sentence of 20 years in prison and a fine of the greater of $250,000 or twice the gross gain or loss on the conspiracy to commit honest-services wire fraud count, the honest-services wire fraud counts, the conspiracy to obtain property under color of official right count, and the obtaining property under color of official right counts; a maximum statutory sentence of 30 years in prison and a fine of the greater of $1,000,000 or twice the gross gain or loss on the false statement counts; and a maximum statutory sentence of 20 years in prison and a fine of the greater of $250,000 or twice the gross gain or loss on the obstruction of an official proceeding count.
The case is being prosecuted by Assistant U.S. Attorneys Michael S. Dry, Jessica D. Aber, and Ryan S. Faulconer of the U.S. Attorney’s Office for the Eastern District of Virginia and Deputy Chief David V. Harbach II of the Criminal Division’s Public Integrity Section. The case is being investigated by the FBI, IRS-CI and the Virginia State Police.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
Former Baptist Missionary Sentenced for Wire FraudRead the Press Release
RICHMOND, Va. – Brady Nurse, 38, of Bothell, Washington, was sentenced today to 24 months in prison, followed by 3 years of supervised release for his role in connection with the fraudulent reimbursement of expense invoices while he served as a Baptist missionary in Portugal.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; and Adam S. Lee, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Richmond Division, made the announcement after sentencing by U.S. District Judge James R. Spencer.
Nurse pleaded guilty on October 21, 2014, to wire fraud. According to court documents, Nurse admitted that from 2008 to 2012, while working in Portugal as a Baptist missionary for the International Mission Board (“IMB”), he fraudulently obtained $284,479.74 through 135 fraudulent reimbursement requests. The IMB is an entity of the Southern Baptist Convention, the nation's largest evangelical denomination, with more than 40,000 churches and nearly 16 million members. It is headquartered in Richmond, Virginia. The IMB is dedicated to evangelizing around the world with approximately 4,800 missionaries worldwide.
During the course of the fraud, Nurse served as the Logistics Coordinator (“LC”) in Portugal, responsible for ensuring the payment of certain expenses for himself, other missionaries, and the IMB overall while overseas. He was also responsible for the financial support activities for IMB field personnel assigned to Portugal. As a Logistics Coordinator, Nurse was paid on an as-needed basis, for field personnel housing, car maintenance, applicable taxes, and major purchases.
IMB LC’s located overseas conducted business from both IMB bank accounts and personal accounts. Nurse acknowledged that when an authorized expense was incurred, he would prepare a request for reimbursement, supported by appropriate documentation. He would then submit the reimbursement request by wire transfer/email from Portugal to the IMB offices in London, U.K., which were then routed to IMB offices in Richmond, Virginia. Once the reimbursement requests were approved by the IMB, Nurse was paid by electronic funds transfers to his overseas bank account through on line banking from Richmond. The internal auditing and control staff of the IMB initially detected, and then determined the extent of Nurse’s fraudulent scheme, subsequently reporting it to the FBI.
In pleading guilty, Nurse admitted using a variety of techniques to submit for, and fraudulently receive, funds from IMB. For instance, he increased amounts on valid documents/invoices submitted on expense reports to fraudulently increase his reimbursement; submitted fraudulent, manufactured, and/or duplicated documentation on expense reports for reimbursement; submitted inadequate documentation, such as quotes and estimates for services to be performed by vendors rather than actual paid invoices, but falsely represented them as services actually provided; altered documentation; and was reimbursed for non-reimbursable expenses such as a jewelry purchase disguised as vehicle painting.
On January 30, 2014, Nurse officially resigned from IMB.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney S. David Schiller prosecuted the case on behalf of the United States.A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:14-cr-138.
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Five North Side Residents Sentenced on Drug and Firearm Related ChargesRead the Press Release
RICHMOND, Va. – Christopher Canty, 33, of Richmond, Virginia was sentenced today to 27 months in prison, followed by 3 years of supervised release for distribution of heroin from his family home on Montrose Avenue. Canty was the last of five men sentenced for drug trafficking and/or firearms offenses arising out of activities at and around the residence on Montrose Avenue.
Chawn Beale, 21, a half-brother to Canty, was sentenced on January 15, 2015 to 15 months’ imprisonment followed by 3 years of supervised release after pleading guilty on October 15, 2014 to distribution of crack cocaine; Corey Beale, 25, also a half-brother to Canty, was sentenced on January 15, 2015 to 90 months’ imprisonment followed by 3 years of supervised release after pleading guilty on October 16, 2014 to possession of a firearm by a convicted felon, arising out of the sale of a firearm from the Montrose Avenue residence; Quintrell Smith, 19, was sentenced on January 16, 2015 to 37 months’ imprisonment followed by 3 years of supervised release after pleading guilty on October 20, 2014 to distribution of crack cocaine; and Corey Mayo, 24, who was determined to be a career offender, was sentenced on January 16, 2015 to 151 months’ imprisonment followed by 5 years of supervised release after pleading guilty on October 20, 2014, to distribution of crack cocaine.
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 sentencings by U.S. District Judge James R. Spencer.According to court documents and statements made at the sentencings, each of the defendants admitted to being involved in a conspiracy for several months in 2014 to sell either crack cocaine or heroin. Many of the sales occurred at the Montrose Avenue residence. Additionally, Corey Beale admitted selling two firearms during the course of this conspiracy. Mayo also admitted to possessing a firearm during the course of this conspiracy, which was recovered by law enforcement officers on May 30, 2014. According to a witness who testified today, that neighborhood used to be a peaceful area, but over the last several years crime has increased, including shootings. On May 28, 2014, there was a drive-by shooting at the Montrose Avenue residence. However, information presented at sentencing indicated that the shootings in the area have decreased since the May arrests of the defendants.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 3:14-cr-81 and 3:14-cr-83.
This case was investigated by ATF and the Richmond Police Department. Assistant U.S. Attorney Olivia L. Norman prosecuted the case on behalf of the United States.Tweet
Co-Conspirator of Arlington Doctor Pleads Guilty to Oxycodone Distribution ConspiracyRead the Press Release
ALEXANDRIA, Va. – Donald Alvin Petties, 51, of Sterling, Virginia, pleaded guilty today to conspiracy to distribute and dispense a controlled substance and to possession with intent to distribute and dispense controlled substances.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by U.S. District Judge Leonie M. Brinkema.
Petties faces a maximum penalty of 20 years in prison and a $1 million fine for the conspiracy offense. 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.In a statement of facts filed with the plea agreement, Petties admitted that during the course of the conspiracy, which began in February 2013, an Arlington, Virginia doctor, Derron McRae Simon, wrote numerous oxycodone prescriptions for Petties that were not for a legitimate medical purpose and were beyond the bounds of medical practice. Simon also wrote fraudulent oxycodone prescriptions in the names of Petties’s mother and children, without their knowledge or authorization, and Petties then filled these fraudulent prescriptions. Petties and Simon would sell the oxycodone to other co-conspirators for further distribution. Petties conspired to distribute at least 6,540 oxycodone 30 mg pills, while Simon conspired to distribute at least 11,000 oxycodone 30 mg pills.
Simon pleaded guilty on December 18, 2014, to conspiracy to distribute and dispense, and to possession with intent to distribute and dispense controlled substances. Simon also pleaded guilty to distributing a controlled substance to a person under the age of 21. In addition to Petties, seven other co-conspirators of Simon have previously pleaded guilty as a result of the investigation.
On July 28, 2014, Simon signed a consent order with the Virginia Board of Medicine and voluntarily and permanently surrendered his license to practice medicine and perform surgery in Virginia. The consent order states Simon will not be eligible for reinstatement of his license at any future date.
This case was investigated by the FBI’s Washington Field Office. Special Assistant U.S. Attorneys Adam Ptashkin, Jennifer A. Clarke, and Jason M. Scheff 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. 1:14-cr-300.
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Woodbridge Man Sentenced to 51 Months in Prison for Fraudulent Loan and Credit SchemesRead the Press Release
Defendant and associates used forged documents to obtain multiple bank loans and credit cards
ALEXANDRIA, Va. – Atef Mekki Haj Hassen, 38, of Woodbridge, Va., was sentenced today to 51 months in prison, followed by three years of supervised release, for wire fraud in connection with multiple fraudulent schemes to obtain bank financing, mortgage loans and credit cards. Hassen will also be required to pay restitution to the victims in the amount of $683,749.10.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by United States District Judge Anthony J. Trenga.
“Hassen engaged in a variety of frauds that victimized banks, credit card companies and other lenders,” said Acting U.S. Attorney Boente. “The kinds of loan fraud in which Hassen so profligately engaged were a microcosm of the activity that led to the collapse of credit nationwide in the fall of 2008 and to economic distress for so many people since that time.”
“Mr. Hassen provided forged and fake documents to multiple financial institutions to gain lines of credit. Believing that the documents submitted were authentic, these institutions invested in their community and in Mr. Hassen’s small business, but ultimately lost hundreds of thousands of dollars,” said Assistant Director in Charge Parlave. “We urge anyone with information about fraud or corruption to come forward and contact the FBI.”
Hassen pleaded guilty to wire fraud on Oct. 7, 2013.
According to court documents, Hassen and his brother-in-law, Atef Ben Amor Amri, operated the New York Pizza Factory, with two locations in Annandale and Fairfax, Va. In October 2005 and May 2007, Hassen and Amri obtained a total of $240,000 in loans from BB&T Bank to remodel their first restaurant, and to open at their second location. Hassen and Amri defaulted on both loans, and they then evaded foreclosure by creating a sham transfer of the business to another person. As a result of this scheme, BB&T Bank lost over $186,000.
Court documents further show that, in June 2008, Hassen obtained a loan from Acacia Federal Savings Bank by inflating his income and assets. In support of his loan application, Hassen forged documents such as W-2 earnings statements, payroll statements and bank account statements.
In addition to these fraudulent loans, Hassen forged similar documents for others to use in obtaining mortgage loans and credit on their own behalf. Using forged documents or templates created by Hassen, his associates purchased properties in Woodbridge, Va. and obtained bank and auto loans based on fraudulent pretenses. Each of those associates— Atef Amri, Henda Bkhairia, Haider Hagui, Khalil Bouzhghaia and Monica Rychel—has pleaded guilty in federal court and will be sentenced later this month.
Court documents further reflect that, from 2005 to 2008, Hassen obtained numerous credit cards by falsely inflating his income. As a result of Hassen’s fraud, four credit card providers—Bank of America, American Express, Discover and Chase—suffered over $169,000 in losses through 12 separate credit card accounts obtained by Hassen.
In addition, Hassen provided forged documents to several people who used those documents to purchase expensive vehicles, walk away from the loans and then ship the vehicles out of the country. Hassen also used multiple aliases and identities, including while he arranged a staged auto accident in Washington, D.C. to obtain insurance proceeds for an associate.
This case was investigated by the FBI’s Washington Field Office. Assistant United States Attorney Gordon D. Kromberg prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Maryland Man Sentenced to 12 Years in Prison for Real Estate FraudRead the Press Release
Defendant targeted vulnerable properties, stole identities
using fraudulent probate court proceedingsALEXANDRIA, Va. – Colin Conroy Williams, 42, of Dayton, Md., was sentenced today to 12 years in prison, followed by three years of supervised release, for serving as the mastermind of a multi-year conspiracy to commit real estate fraud.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by United States District Judge Gerald Bruce Lee.
Williams pleaded guilty on Oct. 28, 2013 to conspiracy to commit wire fraud, wire fraud, aggravated identity theft and money laundering. According to court records, much of Williams’ criminal activity involved fraudulently selling homes that did not belong to the purported property owner. As part of this scheme, Williams first would identify vulnerable properties based on several characteristics—for example, because the property had significant tax liabilities, the true owners lacked a sophisticated understanding of real estate transactions, or the true titleholder had died recently and the rightful heirs had not come forward to claim the property.
Williams used a variety of means to identify the vulnerable properties. He sometimes would visit the D.C. tax courts to identify properties with overdue property tax bills, which was an indication that the rightful owner was not alive or able to pay those tax bills. In other instances, Williams would use open source or subscription services, such as ancestry.com and the D.C. property tax database, to determine whether a particular property was owned by a recently deceased person and whether that person had any living or nearby relatives.
After identifying vulnerable properties, Williams would manipulate the District of Columbia Probate Court process to have a co-conspirator appointed as a “personal representative” for the rightful owner. Williams then would arrange for that newly appointed representative to sell the property without the rightful owner’s knowledge. In so doing, Williams stole multiple identities belonging to the living or recently deceased property owners.
Williams conducted this scheme on at least five homes, including after he knew that he was under investigation by the FBI. He also conducted this scheme despite knowing that two of the actual homeowners were alive. Nevertheless, once the properties were sold, Williams would keep hundreds of thousands of dollars in proceeds for himself, which he laundered to buy expensive cars and fancy jewelry.
Before Williams began conducting this “personal representative” scheme, he repeatedly engaged in more conventional real estate fraud, including directing co-conspirators to lie on loan documents and placing false liens on homes to force his victims to pay him thousands of dollars before they could sell their homes. All told, Williams defrauded numerous victims of more than $1,700,000 in actual and intended losses.
This case was investigated by the FBI’s Washington Field Office. Assistant United States Attorneys Chad Golder and Kosta Stojilkovic prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Leader of Identity Theft Ring Targeting Government Employees Sentenced to 10 YearsRead the Press Release
ALEXANDRIA, Va. – Christopher Bush, 40, of District Heights, Md., was sentenced today to 10 years in prison, followed by four years of supervised release, for bank fraud, access device fraud, and aggravated identity theft. Bush was also ordered to pay full restitution to the victims.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Kathy A. Michalko, Special Agent in Charge for the United States Secret Service’s Washington Field Office; and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement after sentencing by United States District Judge Claude M. Hilton.
Bush pleaded guilty on October 11, 2013.
According to court documents, between January 2012 and July 2013, Bush and co-leader Jenaro Blalock recruited individuals with access to identity information through their employers to steal over 600 identities. Bush used the stolen identities to make fraudulent driver’s licenses bearing the victims’ real names, addresses, and dates of birth. Members of the identity theft ring, including Bush himself, used those fraudulent driver’s licenses and victims’ social security numbers to open credit lines at retailers and obtain rental cars, which were frequently sold on the black market with altered vehicle identification numbers. Bush’s associate, Adrienne Pritchett, stole more than 450 identities from her employer, an insurance provider catering to employees of the U.S. Department of State, U.S. Department of Defense, and the U.S. Agency for International Development. In court documents, Bush acknowledged that the identity theft ring caused victim losses of between $400,000 and $1,000,000.
On January 10, 2014, Pritchett was sentenced to 57 months for her role in the ring. Co-leader Jenaro Blalock will be sentenced on February 14, 2014.
This case was investigated by the United States Secret Service and the Fairfax County Police Department, with assistance from the City of Fairfax Police Department, Prince George’s County W.A.V.E. (Washington Area Vehicle Enforcement), Prince George’s County Financial Crimes Section, the Metropolitan Washington Airport Authority, Delaware State Police, Maryland State Police, D.C. Metropolitan Police Department, U.S. Postal Inspection Service, the Office of the Inspector General of the U.S. Department of Agriculture, and the Office of the Inspector General of the U.S. Department of State. Assistant United States Attorney Lindsay Kelly and Special Assistant United States Attorney Peter Roman of the Department of Justice’s Computer Crimes and Intellectual Property Section prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.International Fugitives Sentenced to 66 Months in Prison for Asset Tracing SchemeRead the Press Release
NEWPORT NEWS, Va. – Elaine White, 70, formerly a resident of Toronto, Canada, and her husband, Cullen Johnson, 65, were both sentenced yesterday to a term of 66 months in prison, followed by 3 years of supervised release, for their role in an international asset tracing scheme. In addition, both White and Johnson were ordered to pay restitution in the amount of $1,021,738.60.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office, and Kathryn Keneally, Assistant Attorney General of the Justice Department's Tax Division made the announcement after sentencing by United States District Judge Mark S. Davis.
Johnson and White pleaded guilty to participating in a conspiracy to engage in money laundering on Sept. 26 and Oct. 7, 2013, respectively. According to court documents, starting in 2006, Johnson and White owned and/or operated an asset location business called “Internal Affairs,” “World Solutions” and then “Occipital.” Clients seeking to locate funds that had been stolen from them or who believed that relatives or former spouses had hidden money or were otherwise trying to trace lost, missing or stolen assets, hired White and Johnson to investigate the location of such assets. White and Johnson then produced reports of information to such clients, which purported to contain financial and other information subject to the clients’ requests. Johnson was a former Toronto Police Department detective and White was a private investigator in Toronto.
According to court records, rather than providing valid information, White and Johnson provided the client-victims with fabricated banking records, purporting to show that the assets or money that clients sought had been moved from one banking institution to another in locations such as Monaco, Greece, Hong Kong, Switzerland, Latin America and the Caribbean. For additional payments, White and Johnson claimed that they could continue to trace the funds to their final destination. On any occasion where the client-victims determined that the information provided by the defendants was false, the defendants claimed that the information was valid and accused the client-victims or their representatives of improperly trying to collect the funds.
Further, court documents also state that, in or about 2009, White and Johnson were charged by the Ontario Provincial Police in Canada with crimes related to this asset tracing fraud. The couple fled Canada, traveling first to the Bahamas, and then to the Turks & Caicos Islands, where they continued to operate this fraudulent asset tracing business on U.S. and Canadian victims. The couple claimed to client-victims that they had been wrongfully charged due to their discovery of government corruption in Canada and the hiding of Canadian funds by politicians and officials in offshore banks. The couple resided there until they were apprehended by Turks & Caicos authorities. All told, the couple solicited more than $1,000,000 from U.S. and Canadian victims, including about $500,000, which they wired to one of their co-conspirators.
Additionally, on Jan. 15, 2014, Juliet Bickford, a resident of Hampton Roads, Va., entered a guilty plea before Magistrate Judge Tommy Miller to one count of filing a false 2011 tax return relating to a false medical deduction. As part of the statement of facts submitted in connection with the guilty plea, Bickford admitted to receiving and spending funds she received from Johnson and White. Bickford did not report any of these funds on her tax returns. She also agreed to pay restitution of $10,000 to the victims of the scheme. Her sentencing has been scheduled for May 6, 2014.
This case was investigated by IRS-Criminal Investigation. It is being prosecuted by Assistant U.S. Attorneys Brian J. Samuels and Lisa R. McKeel and Trial Attorney Jed Silversmith of the Justice Department’s Tax Division.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov. More information about the Tax Division and its enforcement efforts can be found at www.justice.gov/tax.Fairfax Man Sentenced to 25 Years in Prison for Producing Child PornographyRead the Press Release
Defendant victimized 13-year-old boy and another minor
ALEXANDRIA, Va. – Adam Jacob Zottoli, 32, of Fairfax, Va., was sentenced today to 25 years in prison, followed by a lifetime term of supervised release, for producing child pornography involving a 13-year-old boy and another minor.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Colonel Edwin C. Roessler, Jr., Fairfax County Chief of Police, made the announcement after sentencing by United States District Judge Leonie M. Brinkema.
Zottoli pleaded guiltyon Oct. 29, 2013. According to court documents, on March 19, 2013, a 13-year-old boy came to the attention of the Fairfax County Police Department based on concerns at school. The minor told law enforcement that he had been sexually assaulted by Zottoli over the past three years, and that Zottoli had photographed some of the incidents. Law enforcement then obtained search warrants for Zottoli’s house and computers, and the forensic review of Zottoli’s computers found images and videos of the minor, as well as videos and images of another minor. After Zottoli was arrested by the Fairfax County Police Department on April 4, 2013, he admitted to producing child pornography.
Zottoli previously was convicted of possession of child pornography on May 1, 2000 in the Eastern District of Virginia and was sentenced to serve 30 months in prison. As a result of that prior conviction, Zottoli was subject to an increased mandatory minimum sentence of 25 years in prison during today’s sentencing.
This case was investigated by the Fairfax County Police Department. Special Assistant United States Attorney Alicia J. Yass, a Trial Attorney with the Child Exploitation and Obscenity Section of the Justice Department’s Criminal Division, is prosecuting the case on behalf of the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Leader of Group from New York Charged with Offering to Sell Women Sentenced to 36 Months’ ImprisonmentRead the Press Release
NORFOLK, Va. – Prince Lee, 21, of New York, was sentenced today to 36 months in prison, followed by 5 years of supervised release, for conspiracy to transport persons for prostitution.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, Royce E. Curtin, Special Agent in Charge of the FBI’s Norfolk Field Office and James Cervera, Chief of Police, Virginia Beach Police Department, made the announcement after sentencing by United States District Judge Raymond A. Jackson.
Lee pleaded guilty on October 3, 2013. According to court documents, on May 15, 2013, Prince Lee and a young woman posted an advertisement on craigslist.com in Hampton Roads offering to sell the woman as a “sex slave” for $10,000. The Virginia Beach Police Department was monitoring the site and came across the advertisement and responded. An undercover officer spoke with Prince Lee and Lee agreed to sell three women for approximately $225,000. They agreed to meet in Virginia Beach on June 1, 2013. Prince Lee and codefendant Henry Olson recruited Jane Doe 1, a 30 year old also from New York, and told the woman she would receive $10,000 just to “hang out” with a friend of Prince Lee’s in Virginia. After much persuasion, she agreed. Codefendant Arielle Pierre and Prince Lee also recruited Jane Doe 2 to spend a few hours with the man. Neither of the women was told that they were being “sold” to the man. Lee, Olson, Pierre and two others drove with the Jane Does from New York and arrived in Virginia Beach on the morning of June 1, 2013. Under observation by the police, Lee and Pierre were seen yelling at and grabbing the Jane Doe 2, trying to force the woman to remain and go to the “date.” Jane Doe 2 eventually ran into a nearby hotel, where employees hid her in the back room. Prince Lee also threatened to desert Jane Doe 1 in Virginia and throw away her car keys if she did not go forward with the plan. In the afternoon of June 1, the undercover officer arrived for the “date” and all defendants were arrested. Pierre was sentenced on January 8, 2014 to 12 months in jail. Olson is scheduled to be sentenced on January 29, 2014.
This case was investigated by the Virginia Beach Police Department and Federal Bureau of Investigation. Assistant United States Attorney Elizabeth Yusi prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
Former Portsmouth Sheriff’s Office Sergeant Sentenced for Conspiracy and BriberyRead the Press Release
NORFOLK, Va. – A former sergeant of the Portsmouth Sheriff’s Office (PSO) was sentenced to serve 15 months in prison today for accepting bribes in exchange for favors and referrals.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division made the announcement.
Melvin Hike, 65, of Portsmouth, Va., was sentenced by U.S. District Judge Arenda L. Wright Allen of the Eastern District of Virginia. Hike was also sentenced to serve three years of supervised release and to pay a $10,000 fine.
On Oct. 8, 2013, Hike pleaded guilty to conspiracy and federal programs bribery. According to court documents, throughout the relevant time period of 2008 to 2012, Hike was a PSO sergeant assigned to the warrant squad. Ulysses Stephenson, aka “Tugger,” was a bail bondsman based in Portsmouth whose income depended on the number of arrestee clients he served. At various times between 2008 and 2012, Stephenson gave Hike cash payments and other items of value, and in exchange, Hike referred arrestees to Stephenson as prospective clients. Stephenson previously pleaded guilty to conspiracy and federal programs bribery in connection with bribing Hike and he was sentenced to 30 months in prison on Nov. 2, 2012.
This case was investigated by the FBI. The case was prosecuted by Trial Attorneys Monique Abrishami and Peter Mason of the Criminal Division’s Public Integrity Section and Special Assistant U.S. Attorney Amy E. Cross of the Eastern District of Virginia.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Defendant Charged with Threatening to Kill U.S. Embassy OfficialRead the Press Release
ALEXANDRIA, Va. – Robert S. Kanli, also known as Robert S. Martin, 33, born in La Mirada, California, was arrested on charges alleging that he emailed threats to kill an official in the United States Embassy in Pristina, Kosovo.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Gregory B. Starr, Director of the Diplomatic Security Service for the U.S. Department of State, made the announcement after Kanli’s initial appearance before United States Magistrate Judge Ivan D. Davis. Kanli will appear in federal court on January 15, 2014 for a preliminary hearing and bond hearing.
Robert S. Kanli faces a maximum penalty of five years in prison if convicted.
According to court documents, Kanli, who has been residing outside the United States for several years, was attempting to obtain a sixth United States passport over the Internet when he was informed of a delay due to the number of lost passports he had previously reported. After learning that his $56 application fee could not be refunded, Kanli wrote a series of threatening emails to a Consular Officer in the United States Embassy in Kosovo. These communications explicitly threatened to kill the embassy employee who was helping Kanli with his replacement passport application.
Kanli was returned to the United States on January 10, 2014 after being released from custody in Kosovo, where he was held for threatening a foreign mission.
This investigation was conducted by the United States Diplomatic Security Service, with assistance provided by the Republic of Kosovo Police and Department of Criminal Justice and the Austrian Federal Police in connection with Kanli’s arrest and return to the United States. Assistant United States Attorney Ronald L. Walutes, Jr. is prosecuting the case on behalf of the United States.
Criminal complaints are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Annandale Mortgage Broker Pleads Guilty to Involvement in Mortgage Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – Kil Seok (“Michael”) Seo, 49, formerly of Fairfax, Va., pleaded guilty today to bank fraud and aggravated identity theft charges in connection with his involvement in a mortgage fraud scheme.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by United States District Judge James C. Cacheris.
Seo was indicted on December 10, 2009, by a federal grand jury on charges related to a scheme to defraud mortgage lenders. Seo faces a maximum penalty of 32 years’ imprisonment, which includes a mandatory two-year term of imprisonment, when he is sentenced on April 3, 2014.
According to the indictment and a statement of facts filed with the plea agreement, Seo, an Annandale, Va., mortgage broker, schemed with others, including Peter Jin, to defraud lenders by transferring title to residential properties into the names of victims without their knowledge or consent and then opening home equity lines of credit in victims’ names, again without their knowledge or consent. Seo and Jin then opened bank accounts in the victims’ names for the purpose of receiving the fraudulently-obtained loan proceeds. As part of the scheme, Seo obtained from the Virginia Department of Motor Vehicles an identification card in the name of a victim but with Seo’s photo. He used that fraudulent ID to take out a home equity loan in the victim’s name. In total, the scheme resulted in losses to the lenders of nearly $900,000. Seo has resided in South Korea since 2009, and he was extradited to the United States in November, 2013 to face the criminal charges contained in the December 2009 indictment.
In 2009, co-defendant Jin pleaded guilty to mail fraud and aggravated identity theft charges in connection with his role in the offense and was sentenced to 48 months’ imprisonment.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Timothy D. Belevetz is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Two Members of Identity Theft Ring Targeting Government Employees SentencedRead the Press Release
ALEXANDRIA, Va. – Adrienne Pritchett, 42, of District Heights, Md., was sentenced today to 57 months in prison, followed by four years of supervised release, for bank fraud and aggravated identity theft. Pritchett has also agreed to pay full restitution to victims.
Co-defendant Jamille Ferguson, 31, of Dumfries, Va., was sentenced to 36 months in prison, followed by four years of supervised release, for access device fraud and aggravated identity theft. Ferguson was also ordered to pay $47,025.61 in restitution to victims.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Kathy A. Michalko, Special Agent in Charge for the United States Secret Service’s Washington Field Office; and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement after sentencing by United States District Judge Claude M. Hilton.
Pritchett pleaded guilty on October 3, 2013, and Ferguson pleaded guilty on October 8, 2013.
According to court documents, Pritchett stole the identities of more than 450 clients of her employer, an insurance provider catering to employees of the U.S. Department of State, Department of Defense, and Agency for International Development, many of whom are stationed overseas. Pritchett’s live-in boyfriend, co-defendant Christopher Bush, used the stolen identities to make fraudulent driver’s licenses bearing the victim’s real name, address and date of birth. Members of the identity theft ring, including Ferguson, used those fraudulent driver’s licenses to open credit lines at retailers and obtain merchandise and gift cards at victims’ expense. On several occasions, Pritchett sold this stolen merchandise to her colleagues.Two other members of the identity theft ring have already been sentenced. On December 6, 2013, Segale Battle, 30, of Capitol Heights, Md., was sentenced to 12 months in prison and three years of supervised release, and ordered to pay $130,262.35 in restitution for her role in stealing at least 20 identities and several company checks from the Washington-based dental practice where she worked. On December 13, 2013, Rungnatee Pearson, 45, of Bronx, NY, was sentenced to 5 months in prison, 5 months of home confinement, and 2 years of supervised release for using 10 stolen identities to obtain $19,521.96 in merchandise. Pearson was also ordered to repay $19,521.96 in restitution.
This case was investigated by the United States Secret Service and the Fairfax County Police Department, with assistance from the City of Fairfax Police Department, Prince George’s County W.A.V.E. (Washington Area Vehicle Enforcement), Prince George’s County Financial Crimes Section, the Metropolitan Washington Airport Authority, Delaware State Police, Maryland State Police, D.C. Metropolitan Police Department, U.S. Postal Inspection Service, the Office of the Inspector General of the U.S. Department of Agriculture, and the Office of the Inspector General of the U.S. Department of State.
Assistant United States Attorney Lindsay Kelly and Special Assistant United States Attorney Peter Roman prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
Renoir Painting Returned to Baltimore Museum of ArtRead the Press Release
ALEXANDRIA, Va. – United States District Court Judge Leonie M. Brinkema granted a motion for summary judgment in favor of the Baltimore Museum of Art in a civil case brought in connection with the theft and later sale of an 1879 unsigned oil painting on linen by Pierre-Auguste Renoir, titled the "Paysage Bords de Seine."
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the hearing today in front of U.S. District Judge Leonie M. Brinkema.
“The United States Attorney’s Office is pleased by the outcome of today’s decision, which we believe is amply supported by the evidence and the law," said Acting U.S. Attorney Boente. "The Court’s ruling today will ensure that the painting is returned to its rightful owner at the Baltimore Museum of Art.”
The case was filed in federal court as an interpleader action by the United States Attorney’s Office after the government learned that the Renoir painting, which originally had been stolen from the Baltimore Museum of Art in 1951, had been brought to a local auction company in Alexandria, Virginia to offer for sale in 2012. The Federal Bureau of Investigation later served a seizure warrant to gain custody of the painting until the matter was resolved in court.As part of the proceedings, the Baltimore Museum of Art (BMA) filed a summary judgment motion claiming that it was the rightful owner of the painting via a loan from a Baltimore heiress, Sadie A. May, and a subsequent bequest in May’s will. The BMA also presented evidence that the painting was stolen from the museum while on exhibit in November 1951, as reflected in a Baltimore police report filed at the time and documentation of an insurance payment received from the Fireman’s Fund Insurance Company.
As part of the suit, Lovettesville, Virginia resident Martha Fuqua claimed that she had purchased the painting at a flea market for $7.00 and was therefore a bona fide purchaser for value in possession of the property. The Court ruled, however, that Fuqua's alleged flea market purchase could not defeat the BMA’s title to the property as the true owner.A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov by searching for docket number 1:13-cv-347.
Former Nurse Aide Sentenced for Conspiracy and Aggravated Identity TheftRead the Press Release
NORFOLK, Va. – Emmanuel Effiong, 36, formerly of Virginia Beach, Virginia, was sentenced today to 81 months in prison, followed by three years of supervised release, for conspiracy to defraud the government and aggravated identity theft.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia and Trevor Nelson, Assistant Special Agent in Charge, Treasury Inspector General for Tax Administration (TIGTA), made the announcement after sentencing by United States District Judge Arenda Wright Allen.
Effiong pleaded guilty on October 11, 2013. According to court documents, Effiong and his codefendant Festus Ighalo, originally from Nigeria and now naturalized U.S. citizens, were formerly nurse aides at Sentara’s Virginia General Hospital in Virginia Beach. They used their positions there to obtain Personally Identifiable Information (PII), such as dates of birth and social security numbers, from thousands of patients mostly located in the Tidewater area. Then, with the help of others located elsewhere in the U.S. and Nigeria, that information was used to submit fraudulent federal tax returns with the Internal Revenue Service and receive tax refunds in the patients’ names. Ighalo also pleaded guilty and will be sentenced on January 24, 2014.
This case was investigated by IRS Criminal Investigation and the Treasury Inspector General for Tax Administration (TIGTA). Assistant United States Attorney Elizabeth M. Yusi prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Former Ashburn Jeweler Sentenced for Running $20 Million Mortgage Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – Robert Mikail, 41, formerly of Ashburn, Va., was sentenced today to 52 months in prison, followed by three years of supervised release, for his role in fraudulent mortgage loan transactions involving approximately 36 properties in northern Virginia and nearly $20 million in fraudulently obtained loans. Mikail also was ordered to pay approximately $6 million in restitution to lenders and to forfeit to the government $882,387 in proceeds of his crimes.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge James C. Cacheris.
According to court records, Mikail conspired with others, including loan officers Bing-Sing “Cindy” Wang and Ging-Hwang “Felicia” Tsoa, to defraud mortgage lenders as part of a scheme to profit from fraudulently obtained mortgage loans and the purchase of residential real estate in northern Virginia. As part of the scheme, Mikail recruited five individuals, known as “straw buyers,” to serve as nominal purchasers in these transactions, and he worked with loan officers to falsify critical information on the straw buyers’ loan applications in order to get the loans approved and the transactions closed. In particular, virtually all of the fraudulent loan applications falsely identified Mikail’s Ashburn, Va., jewelry store, Opus Jewelry, as the borrower’s employer, which Mikail would then falsely verify to the lenders as part of the loan approval process.
In total, Mikail engineered the purchase of approximately 36 homes in and around Ashburn, Va., from 2005 through 2007, and obtained approximately $20 million in loan proceeds on the basis of fraudulent loan applications. While Mikail personally profited by approximately $882,387 from these transactions, all of the loans ultimately defaulted, resulting in approximately $6 million in losses to the lenders.
Co-conspirator Tsoa, formerly a loan officer at First Empire Mortgage in Fairfax, Va., and Lifetime Financial Services in Herndon, Va., was convicted of conspiracy and bank fraud charges on November 15, 2013, following a jury trial, and will be sentenced on February 7, 2014. Co-conspirator Wang, the owner of Lifetime Financial Services, pleaded guilty to related charges on November 20, 2012, and was sentenced to 24 months in prison on February 26, 2013.This case was investigated by the FBI’s Washington Field Office. Assistant United States Attorneys Paul J. Nathanson and Jasmine H. Yoon prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Canadian Woman Sentenced for Traveling to Virginia for the Purpose of Sexually Abusing Two ChildrenRead the Press Release
ALEXANDRIA, Va. – Theresa Louisa Goddard, 45, of Vancouver, British Columbia, was sentenced today to 10 years in prison, followed by 20 years of supervised release, for attempting to coerce and entice two children into engaging in illegal sexual activity.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Scot R. Rittenberg, Acting Special Agent in Charge of U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), Washington, made the announcement after sentencing by United States District Judge Leonie M. Brinkema.
Theresa Goddard pleaded guilty on October 16, 2013. According to court documents, Goddard posted a message on a website where individuals can exchange messages, pictures, and videos related to taboo subjects. In her message, she stated that she was interested in starting an “incest family.” In June 2013, a special agent with HSI, acting in an undercover capacity, responded to the message, and he began communicating with Goddard using email and live video chats on Skype.
As part of his undercover identity, the HSI agent told Goddard that he had two minor children, a girl and a boy. The children were fictitious. During the conversations, Goddard made plans to travel from Vancouver to Virginia in order to sexually abuse and rape both children. She further stated that she wanted to quit her job in Vancouver and move in with the undercover agent in order to continue sexually abusing his children on a regular basis.
On June 26, 2013, Goddard traveled from Vancouver, British Columbia, to Dulles International Airport in Virginia for the purpose of meeting the special agent and sexually abusing his children. She was arrested shortly after landing in Virginia.
This case was investigated by ICE Homeland Security Investigations, with assistance from the Northern Virginia/Washington, DC Internet Crimes Against Children Task Force. Assistant United States Attorney Matt J. Gardner prosecuted the case on behalf of the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This investigation was part of Operation Predator, a nationwide HSI initiative to protect children from sexual predators, including those who travel overseas for sex with minors, Internet child pornographers, criminal alien sex offenders and child sex traffickers. HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-347-2423 or by completing its online tip form. Both are staffed around the clock by investigators. Suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children, an Operation Predator partner, via its toll-free 24-hour hotline at 1-800-843-5678.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
U.S. Attorney’s Office Collects over $45 Million in Civil and Criminal Actions for U.S. Taxpayers in FY 2013Read the Press Release
Alexandria, Virginia – Acting U.S. Attorney Dana J. Boente announced today that the Eastern District of Virginia (EDVA) collected $45,088,361.82 in criminal and civil actions in Fiscal Year 2013. Of this amount, $24,291,184.24 was collected in criminal actions and $20,797,177.58 was collected in civil actions
Additionally, EDVA worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $473,911,812.38 in cases pursued jointly with these offices. Of this amount, $2,384,207.68 was collected in criminal actions and $471,527,604.70 was collected in civil actions.
Attorney General Eric Holder announced on Wednesday that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“The department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the American people,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
“The collections announced today reflect the tremendous work being done to recover the ill-gotten gains of criminal activity, protect American taxpayers from fraud and other misconduct, and enforce civil rights,” said Acting U.S. Attorney Boente. “We are committed to working with the Justice Department and our law enforcement partners to hold accountable those who harm members of the community and the public fisc.”
In March 2013, the U.S. Attorney’s Office recovered $3 million as part of a settlement with three CIA contractors—American Systems Corporation, Anixter International Inc., and Corning Cable Systems LLC—regarding allegations that the companies violated the False Claims Act and the Anti-Kickback Act in bidding on a contract with the CIA. The United States alleged that the contractors provided gratuities, including meals, entertainment, gifts, and tickets to sporting and other events, to CIA employees and outside consultants in order to influence contract specifications that would favor the three companies in the award of the contract. The settlement also resolved allegations that the three companies improperly received source selection information from a CIA employee to whom they had provided gratuities, and that they had concealed the gratuities prior to award.
During fiscal year 2013, the U.S. Attorney’s Office for the Eastern District of Virginia also worked with the Justice Department’s Civil Rights Division and other U.S. Attorney’s Offices to collect and disburse funds paid from a major settlement to resolve claims of discrimination in mortgage lending programs operated by Wells Fargo Bank. As part of that settlement, Wells Fargo agreed to pay over $184 million to borrower assistance programs and related efforts targeted at helping African-American and Hispanic homeowners in affected communities.
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s Office, working with partner agencies and divisions, collected $17,921,285 in asset forfeiture actions in FY 2013. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.Treasurer of Charitable Organization Pleads Guilty to Making False StatementsRead the Press Release
ALEXANDRIA, Va. – Sheikh Javed Rehmat, a pharmacist in Little Neck, NY, pleaded guilty today to one count of making false statements relating to a government investigation into violations of the International Emergency Economic Powers Act, the Foreign Agents Registration Act, and a conspiracy to defraud the United States.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; John P. Carlin, Acting Assistant Attorney General for National Security; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; and Thomas J. Kelly, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation Field Office in Washington, D.C. (IRS-CI), made the announcement after the plea was accepted by United States District Judge Liam O’Grady.
Rehmat faces a maximum penalty of five years in prison when he is sentenced on July 18, 2014.
In a statement of facts filed with the plea agreement, Rehmat, a treasurer and member of the Board of Directors of the Society for International Help (“SIH”), a 501(c)(3) tax-exempt charity based in New York, admitted to making false statements surrounding financial transactions concerning SIH, as well as another charity – the Kashmiri American Council (“KAC”). Syed Ghulam Nabi Fai, the director of the KAC, was sentenced to serve two years in prison on March 30, 2012, for his role in a conspiracy to conceal that the KAC was funded between 1990 and 2011 with at least $3,500,000 from the government of Pakistan, including the Inter-Services Intelligence Agency (Pakistan’s military intelligence service).
Rehmat also admitted to making false statements surrounding the purchase of over $8,000,000 of shares of stock from Yasin Kadi and/or Muwaffaq Limited – over $3,330,000 of which had been purchased with money that Rehmat had wired from SIH’s accounts to those of another charitable organization in Pakistan. Yasin Kadi has been designated as a Specially Designated Global Terrorist by the U.S. Department of Treasury, Office of Foreign Assets Control, since 2001. Yasin Kadi held these shares through Muwaffaq Limited, which was registered in the Isle of Man.
This investigation is being conducted by the FBI’s Washington Field Office and the IRS Criminal Investigation’s Washington Field Office.
The prosecution is being handled by Assistant U.S. Attorney Gordon Kromberg, Trial Attorney John Gibbs of the Counterterrorism Section of the Justice Department’s National Security Division, and Special Assistant U.S. Attorney Allison Ickovic from the Justice Department’s Tax Division.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Nine Trey Gangster Sentenced to 9 1/2 YearsRead the Press Release
RICHMOND, Va. – Ricky Timothy Wyatt, Jr., a.k.a. “Knuckles,” 27, of Petersburg, Va., was sentenced today to 114 months’ in prison, to be followed by 3 years of supervised release for charges of possession of firearms by a convicted felon and manufacturing counterfeit currency.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Jeffrey C. Mazanec, Special Agent in Charge, Federal Bureau of Investigation’s Richmond Field Office; Kathy A. Michalko, Special Agent in Charge of the United States Secret Service’s Washington Field Office; and John I. Dixon, III, Chief of Police, City of Petersburg, made the announcement after the sentence was imposed today by United States District Judge Henry E. Hudson.
To date, more than one dozen members of the Nine Trey Gangster (NTG) organization have been indicted and convicted of various federal charges involving illegal firearms, manufacturing counterfeit currency, and drug trafficking. Charges against more than one dozen other Nine Trey Gangsters are currently pending.
Wyatt, who proceeded to trial on September 26, 2013, was convicted on September 27, 2013 of all six counts in the Criminal Indictment. At the sentencing hearing today, the United States introduced evidence showing that Wyatt was in charge of NTG members in Petersburg, Virginia and elsewhere, and that he was responsible for leading a group involving five or more people, or was otherwise extensive. The United States linked the firearms he illegally possessed, and his manufacturing of counterfeit currency to Wyatt’s leadership role in the Nine Trey Gangsters, where Wyatt held the rank of “Lo Stain.”
NTG is part of the United Blood Nation (UBN). UBN was the first unified Blood gang alliance on the East Coast, and started on Riker’s Island at the George Machen Detention Center in the New York City jail system. There were five original sets under the UBN, one of which was NTG, which was formed in 1993. Since its inception, NTG has been one of the most active East Coast Blood gang sets. NTG has spread across the eastern United States, and the FBI and numerous dedicated gang task forces have undertaken a long-term investigation of NTG activities in Virginia and neighboring states. NTG members are organized into “line-ups.” There were multiple active “line-ups” in Virginia and elsewhere under Wyatt’s control. The “High Stain” appoints a “Lo Stain” who has generals ranking from five stars down to one star reporting to him. “Soldiers” are the lowest ranking members in the gang. The “High Stain” of each line up reports to two “Godfathers,” both of whom are in New York. At NTG meetings, dues were collected, a portion of which was sent to NTG leadership in New York. In addition, meetings included assigning discipline to NTG members who violated NTG codes. Discipline may involve a loss of rank, or a 31 second beating.
This case was initiated and investigated by the Federal Bureau of Investigation as part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation, Full Blooded Ink. Assistant United States Attorney Angela Mastandrea-Miller prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Three Area Men Charged After Armed Robbery of Arlington BankRead the Press Release
Subjects allegedly involved in multiple robberies in Maryland, Virginia and Washington, D.C.
ALEXANDRIA, Va. – James McNeal, 63, of Hyattsville, Md., James Link, 56, of Washington, D.C., and Alphonso Stoddard, 59, of Forest Heights, Md., were charged today by criminal complaint with armed bank robbery.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; and M. Douglas Scott, Arlington County Chief of Police, made the announcement after the initial appearance of defendants Link and Stoddard before United States Magistrate Judge John F. Anderson.
The defendants each face a maximum penalty of 25 years’ imprisonment if convicted.
According to court documents and court proceedings today, the FBI received information in December 2013 that McNeal, Link and Stoddard had been responsible for the armed robberies of multiple banks in the Washington metropolitan area. After identifying the subjects, the FBI kept the three men under close surveillance, which included observing the defendants as they cased banks in Arlington, Va. for potential robberies.
On December 31, 2013, FBI agents followed the three subjects as they drove from Maryland to a Wells Fargo bank branch in Arlington. At approximately 1:15 p.m., Link and Stoddard entered the bank with their faces covered. Link brandished a gun and pointed it at individuals in the bank, while Stoddard jumped the teller counter and removed approximately $47,000 in cash from teller drawers. The two men exited the bank and returned to their vehicle, where McNeal was waiting.
As the three subjects attempted to flee the scene, FBI and Arlington County Police apprehended them approximately one block away. A handgun and cash were found in the vehicle. A search of McNeal’s house in Hyattsville, Md. led to the discovery of additional firearms, gloves and items of clothing that are believed to be linked to previous bank robberies.
The investigation was conducted by the FBI’s Washington Field Office with the assistance of the FBI’s Baltimore Division and the Fairfax County and Arlington County police departments. The United States Attorney’s Offices for the District of Columbia and the District of Maryland also provided assistance in the investigation. Assistant United States Attorney Adam B. Schwartz is prosecuting the case on behalf of the United States.
Criminal complaints are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Arizona Systems Administrator Pleads Guilty to Sabotaging Ex-Employer’s Cloud-Computing ServerRead the Press Release
ALEXANDRIA, Va. – Jonathan Hartwell Wolberg, 31, of Tucson, Az., pleaded guilty today to intentionally causing damage to a protected computer.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by United States District Judge Liam O’Grady.
Wolberg was indicted on August 22, 2013 by a federal grand jury on charges related to computer hacking. Wolberg faces a maximum penalty of 10 years’ imprisonment when he is sentenced on April 11, 2013.
According to the indictment and a statement of facts filed with the plea agreement, Wolberg formerly worked as a systems administrator for a company identified as “Company A,” a cloud-computing services provider headquartered in the Eastern District of Virginia. After resigning, Wolberg continued to enter the networks of Company A for the purpose of damaging its servers, its reputation, and its business. From about March 16, 2012 through about August 1, 2012, Wolberg encouraged Company A’s customers to leave and secretly logged into Company A’s server to issue a shutdown command to a key data server. As a result, he shut down Company A’s customer networks, making key information – including that of hospitals responsible for surgery and other urgent patient care – unavailable for at least several hours. Wolberg caused hundreds of thousands of dollars of damage as a result.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Alexander T.H. Nguyen and Trial Attorney Richard D. Green, on detail from the Justice Department’s Computer Crime and Intellectual Property Section, are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Ringleader of Multi-Million Dollar Home Equity Line of Credit Fraud Scheme Sentenced to 70 Months in Prison After Years as A FugitiveRead the Press Release
ALEXANDRIA, Va. – Tobechi Enyinna Onwuhara, 34, formerly of Dallas, Texas, was sentenced today to 70 months in prison for conspiracy to commit bank fraud, conspiracy to commit money laundering, and computer fraud, all in relation to a home equity line of credit fraud scheme that attempted to steal more than $38 million and caused approximately $13 million in losses. His prison term will be followed by five years of supervised release.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; Kathy A. Michalko, Special Agent in Charge of the United States Secret Service’s Washington Field Office; Earl L. Cook, Alexandria Chief of Police; and Robert Mathieson, United States Marshal for the Eastern District of Virginia, made the announcement after sentencing by United States District Judge Claude M. Hilton.
After more than four years as a fugitive—during which Onwuhara was featured on “America’s Most Wanted”—Onwuhara was arrested in Australia, brought to the United States, and pleaded guiltyon June 21, 2013. According to court documents, Onwuhara was the ringleader of a group of Nigerians who used fee-based web databases to search for potential victim account holders with large balances in home equity line of credit (HELOC) accounts. This information included name, address, date of birth, and social security number. Once the conspirators identified a victim, they used other online databases to obtain information commonly used in security questions, such as the victim’s mother’s maiden name. The conspirators then obtained credit reports on the victims in order to verify personal information and account balances.
Armed with a victim’s personal information, the conspirators called the victim’s financial institution, impersonated the victim, and transferred the majority of the available money from the HELOC account into an account from which a wire transfer could be sent. The conspirators would then wire transfer hundreds of thousands of dollars to domestic or overseas accounts controlled by members of the conspiracy. The conspirators used caller-ID spoofing services, prepaid cell phones and PC wireless Internet access cards, and transferred victims’ home telephone numbers in order to impersonate the victim and avoid identifying themselves.
Once the fraudulently-transferred funds arrived in the destination bank, a conspirator with access to the account would withdraw funds and transfer them to other members of the conspiracy after taking a portion of the proceeds for himself. The following members of this conspiracy have been convicted in the Eastern District of Virginia:
- Obinna Orji, from Arlington, Texas, who was a fugitive since being charged in August 2008, was arrested in December 2012, pleaded guilty, and was sentenced to 72 months in prison on May 17, 2013.
- Henry “Uche” Obilo, of Miami, Florida, was sentenced to 88 months in prison on Sept. 11, 2009.
- Abel Nnabue, of Dallas, was sentenced to 54 months on Jan. 30, 2009.
- Precious Matthews, of Miami, was sentenced 51 months on Feb. 13, 2009.
- Brandy Anderson, of Dallas, was sentenced to 2 years of supervised probation and 40 days of community confinement on Feb. 20, 2009.
- Ezenwa Onyedebelu, of Dallas, was sentenced to 37 months on Feb. 27, 2009.
- Daniel Orjinta, of Nigeria, was sentenced to 42 months on March 6, 2009.
- Paula Gipson, of Dallas, was sentenced to 15 months on Sept. 4, 2009.
This case was investigated by the FBI’s Washington Field Office, United States Secret Service, and the Alexandria Police Department, with assistance from the U.S. Marshals Service. Assistance also was provided by the Australian Federal Police, who located Onwuhara in Sydney and helped coordinate the recovery of evidence and the defendant’s extradition to the United States. Assistant United States Attorney Alexander T.H. Nguyen and Lindsay Kelly prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.New Jersey Man Sentenced to Nine Years for Travelling to Virginia to Have Sex with MinorRead the Press Release
ALEXANDRIA, Va. - Royce DeWeese, 26, of Cherry Hill, New Jersey, was sentenced today to 108 months in prison for travelling to Virginia intending to have sex with a minor. After fulfilling his sentence, he will serve a lifetime term of supervised release.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Acting Special Agent in Charge Scot R. Rittenberg of U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), Washington, made the announcement after sentencing by United States District Judge T.S. Ellis, III.
DeWeese pleaded guilty on September 13, 2013. According to court documents, between March and May 2013, DeWeese communicated over the Internet with an undercover HSI agent about plans to travel to Fairfax, Virginia in order to engage in sexual activity with the undercover agent’s supposed 10-year-old daughter. On May 14, 2013, DeWeese did travel from New Jersey to Fairfax, Virginia, where law enforcement arrested him.
The investigation was conducted by Homeland Security Investigations. Special Assistant United States Attorney Alicia J. Yass, a Trial Attorney with the Child Exploitation and Obscenity Section of the U.S. Justice Department’s Criminal Division, is prosecuting the case on behalf of the United States.
This investigation was part of Operation Predator, a nationwide HSI initiative to protect children from sexual predators, including those who travel overseas for sex with minors, Internet child pornographers, criminal alien sex offenders and child sex traffickers. HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-347-2423 or by completing its online tip form. Both are staffed around the clock by investigators. Suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children, an Operation Predator partner, via its toll-free 24-hour hotline, 1-800-843-5678.
The prosecution was part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Leader of Violent Jewelry Theft Ring Sentenced to 20 YearsRead the Press Release
NEWPORT NEWS, Va. – Alexander Cuadros-Garcia, 39, of Richmond, Va., and Leonardo Ortiz, 42, of North Chesterfield, Va., were sentenced to 240 months and 210 months in prison, respectively, for participating in a violent and highly sophisticated jewelry theft ring that operated out of Richmond, Va.
Dana J. Boente, Acting U.S. Attorney for the Eastern District of Virginia; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; and Carl J. Vasilko, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement following the sentencing by District Court Judge Arenda L. Wright Allen.
“This crew was violent, sophisticated, and relentless in stealing several million dollars in jewelry from victims along the East Coast,” said Acting U.S. Attorney Boente. “The substantial sentences imposed on these two defendants, along with the sentences imposed before on their confederates, is a testament to the great work and cooperation of our law enforcement partners across multiple states and agencies.”
“This is a perfect example of our commitment to combating violent and organized crime elements operating within our nation,” added Carl Vasilko, Special Agent in Charge of the ATF’s Washington Field Division. “ATF’s new FRONTLINE Initiative has been implemented to concentrate our resources against those who pose the greatest threat to our citizens through violence and terror. I am extremely impressed with the courage and diligence of our agents in the Norfolk Field Office, which spearheaded this operation, and I commend them on their success.”
According to court documents, Cuadros-Garcia led the organized criminal group in stealing more than $4.6 million in jewelry from victims in Virginia and at least four other states, including New York, New Jersey, North Carolina, and Maryland. In March 2012, Cuadros-Garcia and Ortiz were charged along with six other members of the Richmond-based ring.
Members regularly conducted lengthy surveillance on jewelry stores to identify vulnerable individuals and then follow their targets back to the individuals’ hotel or home. In most of the robberies, several men would appear suddenly as the victims approached or entered their car, punch out the car’s windows, threaten the victims at knife-point and 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.
After a successful robbery, members of the ring would travel to New York to sell the merchandise to businessmen, who coordinated re-selling the stolen property or melting it down for future use. Members of the ring then laundered the proceeds through bank accounts and businesses.
Co-defendants Lucesita Argueta, Raul Antonio Escobar-Martinez, Luis Carlos Muchado, William Leandro Herrera-Bohorquez, Jose Alfredo Rivero-Garcia, and Juanita Diaz previously pleaded guilty for their roles in the theft ring. Escobar-Martinez and Herrera-Bohorquez were sentenced on March 7 and March 14, 2013, respectively, to serve 87 months in prison. Rivero-Garcia was sentenced on July 24, 2013, to 37 months in prison. Argueta was sentenced on September 18, 2013, to 108 months in prison. Diaz was sentenced on September 18, 2013, to serve 12 months of home confinement. Muchado was sentenced on September 27, 2013, to serve 97 months in prison.
Cuadros-Garcia was sentenced on December 18, 2013, to 240 months in prison, and Ortiz was sentenced on December 20, 2013, to 210 months in prison.
The investigation of this case was led by the ATF’s Washington Field Division, with the assistance of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the police departments in Williamsburg, Virginia Beach, Henrico County, Chesterfield, Prince William County and Fairfax County, Va., along with the Virginia State Police; the Baltimore County, Md., Police Department; the Port Authority of New York and New Jersey; the New York City Police Department; and the police departments in Rutherford, N.J., and Gwinnett County, Ga.; and the Morris County, N.J. Prosecutor’s Office.
Assistant U.S. Attorney Eric M. Hurt of the Eastern District of Virginia and Trial Attorney Jerome M. Maiatico of the Criminal Division’s Organized Crime and Gang Section prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Richmond Man Pleads Guilty and Admits to Stealing Millions Through A Rehabilitation Tax Credit SchemeRead the Press Release
RICHMOND, Va. – Billy Gene Jefferson, 52, of Richmond, Va., pleaded guilty today for his role in stealing over $12,000,000 from federal and state tax credit programs that are designed to promote the rehabilitation of historic buildings in the area.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Kenneth T. Cuccinelli, II, Attorney General of Virginia; Thomas J. Kelly, Special Agent in Charge of the Internal Revenue Service Criminal Investigation’s Washington, D.C., Field Office; Jeffrey C. Mazanec, Special Agent in Charge of the FBI’s Richmond Field Office; Gary Barksdale, Inspector in Charge of the United States Postal Inspection Service, Washington, D.C. Division; and Colonel W. Steven Flaherty, Superintendent of Virginia State Police, made the announcement after the plea was accepted by United States District Judge John A. Gibney, Jr.
Jefferson was charged in a criminal information with Major Fraud Against the United States and Engaging in Unlawful Monetary Transactions. He faces a maximum penalty of 20 years in prison, restitution to the victims, a fine of up to $500,000, and three years of supervised release when he is sentenced on April 8, 2014.
According to a statement of facts filed with the plea agreement, Jefferson was the managing member of “River City Renaissance, LC” and “River City Renaissance III, LC,” both real estate development companies that specialized in urban renewal projects and the rehabilitation of historic buildings. The defendant also used another corporation, “River City Real Estate, Inc.,” (RCRE) as the general contractor for rehabilitation work on the properties. Using these entities, Jefferson applied for millions in state and federal historic tax credits in connection with his rehabilitation of a number of historic properties throughout the Richmond area.
At the state level, the Virginia Department of Historic Resources (VDHR) administered the Virginia Historic Rehabilitation Tax Credit program. That program allowed the property owner to receive a state income tax credit equal to 25 percent of the amount spent on eligible rehabilitation expenses. At the federal level, the U.S. Department of the Interior National Park Service (DOI-NPS) administered the Federal Historic Preservation Tax Incentives program, which encouraged private sector rehabilitation of historic buildings through tax credits equal to 20 percent of the amount spent on eligible rehabilitation expenses.
Jefferson admitted that from 2009 through 2011 he fraudulently participated in the state and federal historic rehabilitation tax credit programs through the rehabilitation of qualified properties. Specifically, he submitted applications for federal and state tax credits on the rehabilitation of a former tobacco manufacturing plant in the Manchester Industrial Historic District of Richmond, Virginia (referred to as the TABAC Project), which was followed by the rehabilitation of ten historic buildings located in the Fan District of Richmond, Virginia (referred to as the River City Renaissance Projects).
Among other steps in his fraudulent rehabilitation tax credit scheme, Jefferson executed and submitted false applications to the VDHR and DOI-NPS for the tax credit approval process, including the Part 3: Historic Preservation Certification Application – Request for Completed Work form that requires accurate certification of “costs attributed solely to rehabilitation of the historic structure.” Within the Part 3 Certifications, Jefferson falsely inflated the Qualified Rehabilitation Expenses (QREs), thereby increasing the tax credits claimed for specific projects. Jefferson agreed that if actual amounts had been submitted to federal and state authorities, he would have received less in Virginia and federal tax credits.
With respect to the River City Renaissance Projects, Jefferson admitted to initiating the historic rehabilitation tax credit application process on at least 10 different properties in Richmond, Virginia. Due to concerns with the accuracy of the defendant’s QRE submissions, VDHR required additional information to address the concerns on six of the properties. During the verification process for those expenses, Jefferson provided false information and concealed the actual QRE expenditures that he knew to be less than the amounts claimed on the original submissions to VDHR. In total, for the River City Renaissance Projects, Jefferson’s account records established that of the $28,836,342 in QRE expenses claimed, only $9,796,252.08 could have qualified as QREs for federal and state tax credits on the River City Renaissance Projects. As a result of those false submissions, Jefferson fraudulently received approximately $7,775,410.46 in actual tax credits on the River City Renaissance Projects.
Jefferson also admitted to submitting inflated QREs for the TABAC Project. His account records established that of the $57,064,858 in QRE expenses claimed, only $45,570,466.20 could have qualified as QREs for federal and state tax credits on the TABAC Project. As a result of those false submissions, Jefferson fraudulently obtained approximately $5,172,476.31 in tax credits on the TABAC Project.
Jefferson also admitted to using different business arrangements resulting in portions of the Federal tax credits accruing to the benefit of corporation C.U.S.A. and portions of the state tax credits accruing to benefit of corporation F & Co. Through those arrangements, he received payments from those corporations in exchange for the tax credits. Jefferson admitted that as part of the ongoing scheme to defraud, he caused C.U.S.A. to wire transfer $3,674,277 from a Citibank bank account to the River City Renaissance, LC Wachovia Bank account (ending in 9277), in Richmond, Virginia. Jefferson subsequently transferred those funds to different accounts under his control, including personal accounts he maintained at HSBC Bank International.
In connection with his guilty plea, Jefferson agreed that the loss amount relating to the federal tax credits is $5,754,616.34, and the loss amount relating to the state credits is $7,193,270.43, for a combined total of $12,947,886.77. He agreed to pay that full amount for restitution, as well as an additional $750,000 for criminal forfeiture.
This case was investigated by the Internal Revenue Service Criminal Investigation Division, Federal Bureau of Investigation Richmond Office, the United States Postal Inspection Service, and the Virginia State Police. The Virginia Department of Historic Resources also assisted law enforcement in the investigation. Assistant United States Attorneys Michael Gill and Wingate Grant and Special Assistant United States Attorney Patrick Dorgan are prosecuting the case on behalf of the United States.
This investigation has been coordinated by the Virginia Financial and Securities Fraud Task Force, an unprecedented partnership between criminal investigators and civil regulators to investigate and prosecute complex financial fraud cases in the nation and in Virginia. The task force is comprised of several federal and state agencies, including the Virginia Attorney General’s Office. The task force is an investigative arm of the President’s Financial Fraud Enforcement Task Force (FFETF), an interagency national task force.
The FFETF was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Arsonist Receives 60 Months in Prison for Burning Lorton, Virginia Sandwich ShopRead the Press Release
ALEXANDRIA, Va. – Horace Sinclair Thompson, Jr., 25, of Lorton, Va., was sentenced today to 60 months in prison, followed by 2 years of supervised release, for the arson of a retail food establishment located in Lorton, Va.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police; Deputy Chief Michael T. Reilly, Fairfax County Office of the Fire Marshal; and Carl J. Vasilko, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by United States District Judge Gerald Bruce Lee.
Thompson was found guilty following a multi-day jury trial on October 3, 2013. According to court documents and evidence adduced at trial, on February 6, 2013, Thompson intentionally poured gasoline inside of a Lorton, Virginia sandwich shop and ignited the flammable vapors with a BiC lighter. His ignition of the highly volatile vapors caused a massive explosion and fireball that destroyed the majority of the store. The force of the blast was so strong that it blew out the store’s windows, cracked and melted porcelain fixtures, and blew a door off of its hinges. Thompson was apprehended after he was admitted to the hospital with burns consistent with the arson.
This case was investigated by the Fairfax County Police Department, the Fairfax County Fire Marshal’s Office, and the ATF. Assistant United States Attorneys Mike Rich and Zach Terwilliger prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Alleged Ms-13 Member Extradited from El Salvador to Eastern District of Virginia on Charges of Attempted Murder in Aid of RacketeeringRead the Press Release
ALEXANDRIA, Va. – Edgar Benitez Hernandez, also known as “Shadow,” 25, of the District of San Miguel, El Salvador, was extradited from El Salvador to the United States on Wednesday, December 18, 2013. Benitez Hernandez was previously indicted by an Eastern District of Virginia grand jury on June 13, 2010, on multiple racketeering charges, including attempted murder.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, Michael L. Chapman, Loudoun County Sheriff, and Maggie DeBoard, Town of Herndon Chief of Police, made the announcement.
This case is an example of the hard work and partnership between FBI agents and police detectives who serve on the Northern Virginia Gang Task Force. These collaborative efforts are essential to investigating complex gang crimes and bringing gang members to justice.
Benitez Hernandez, who was charged with multiple counts of attempted murder in aid of racketeering as well as the discharge of a firearm during or in relation to a crime of violence, faces a maximum penalty of life imprisonment if convicted. Benitez Hernandez, who made his initial appearance today in front of United States Magistrate Judge Ivan D. Davis, will next appear for arraignment in front of United States District Judge Claude M. Hilton within the next fourteen days.
According to the indictment, Benitez Hernandez, an alleged member of the notoriously violent transnational street gang Mara Salvatrucha 13 (“MS-13”), attempted to murder two individuals on September 13, 2008, in Loudoun County, Virginia. Benitez Hernandez allegedly committed the double shooting to increase his position and stature within MS-13. On May 22, 2013, Benitez Hernandez was apprehended, in El Salvador, by an elite Salvadoran investigative unit known as the Transnational Anti Gang (TAG) Task Force. The TAG is composed of specially trained Salvadoran National Police investigators who work closely with the FBI on transnational investigations. This extradition marks the first time in recent history that a Salvadoran citizen has been extradited to the United States to be held accountable for alleged gang activity committed in the United States.
This case was investigated by the Federal Bureau of Investigation, Loudoun County Sheriff’s Office, and the Northern Virginia Gang Task Force with assistance from the Town of Herndon Police Department. The United States law enforcement partners involved in the investigation and prosecution of Benitez Hernandez praised the outstanding efforts of the Salvadoran National Police for their assistance in bringing this fugitive to justice. Acting United States Attorney, Dana J. Boente, also thanked the FBI’s Legal Attaché office in El Salvador, the Government of El Salvador, and the U.S. Department of Justice’s Office of International Affairs. Assistant United States Attorneys Patricia Haynes and Zach Terwilliger are prosecuting the case on behalf of the United States.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Members of "Black P-Stones" Gang IndictedRead the Press Release
NEWPORT NEWS, Va. – An eighteen-count superseding indictment was unsealed yesterday charging seven defendants—Justin Jerrell Brown, a.k.a. “Jus Money,” 22; Michael Ledale Hopson, a.k.a. “O.G.,” “Hop,” “Big Homie,” 36; Marcellus N. Williams Jr., a.k.a. “Math,” “P-Shooter,” “Manny,” 26; Darius Durel Crenshaw, a.k.a. “D-Block,” “Block,” “Block Head,” 27; Desmond Rishaad Finnell, a.k.a. “Dez,” “Jimmy Mac,” 23; Enrique Omar Hinton, a.k.a. “Rico,” 26; and Chadrick Derrell Lard, 23—with racketeering conspiracy, murder and attempted murder in aid of racketeering, robbery, conspiracy to distribute marijuana, and related firearms crimes. According to the indictment, the defendants were high-ranking members and associates of a violent street gang called the Black P-Stones, also referred to as the P-Stone Bloods and Cobra Stones.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Mythili Raman, Acting Assistant Attorney General for the Justice Department’s Criminal Division; and Royce E. Curtin, Special Agent in Charge of the Federal Bureau of Investigation’s Norfolk Field Office, made the announcement.
The indictment alleges that from approximately 2005 to the present the Black P-Stones operated as a criminal enterprise located primarily in the Beechmont, Courthouse Green, and Woodview neighborhoods in the Denbigh area of Newport News. The Black P-Stones engaged in various criminal activities including murders, robberies, illegal drug trafficking, and obstruction of justice. Membership in the Black P-Stones often entailed being “jumped in,” during which the new member was surrounded and beaten. To remain in good standing with the gang, members were required to comply with the gang’s rules, attend gang meetings, and pay monthly “dues.” Failing to follow the rules or pay dues resulted in “violations” that ranged from being beaten to being killed. Lower-ranking members of the Black P-Stones often received orders or approval from high-ranking members to carry out criminal activities, which were sometimes referred to as getting the “green light.” The Black P-Stones signified their membership by wearing clothing, hats, and bandannas with the colors red, black, and yellow, and by displaying distinctive tattoos, burns, hand signs, and handshakes. The indictment also alleges the Black P-Stones clashed with rival gangs including the 10-1 Mafia Crips, Folks, and Thug Relations, which was also referred to as TR, and Duct to the Lawnz.
According to the indictment, the defendants’ respective roles in the Black P-Stones gang were the following in descending order: Hopson served as the leader known as the Big Homie or O.G., which is an acronym for “original gangster”; Williams and Crenshaw held the rank of “Superior”; Finnell and Brown held the rank of “Lieutenant”; Hinton was a member; and Lard was an associate.
Hopson and Finnell were arrested yesterday, and Brown and Hinton are also currently in federal custody. Hopson, Finnell, and Hinton will make their initial appearances in federal court in Norfolk today. Brown will be arraigned in federal court in Newport News on Dec. 19, 2013. Williams and Crenshaw are currently in state custody and will make their initial appearances in federal court on a later date.
The investigation of this case was led by the FBI’s Safe Streets Peninsula Task Force, with the assistance of the Newport News Police Department and the James City County Police Department. Assistant United States Attorney Eric M. Hurt and Trial Attorney Louis A. Crisostomo of the Organized Crime and Gang Section in the Justice Department’s Criminal Division are prosecuting the case on behalf of the United States.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Arizona-Based Man Sentenced for Role in Multi-State Cocaine Distribution ConspriacyRead the Press Release
NORFOLK, Va. – Luis Alberto Navarro, 33, of Tucson, Arizona, was sentenced today to 360 months in prison, followed by 5 years of supervised release, for his role in a cocaine distribution conspiracy. He was also ordered to forfeit $300,000.00 in cash seized in connection with his arrest in June 2013, along with his interest in a home located in Rio Rico, Arizona, which was affiliated with the conspiracy.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, made the announcement after sentencing by United States District Judge Arenda L. Wright Allen.
Navarro pleaded guilty on September 10, 2013. According to court documents, since approximately 2006, Navarro was a member of a large-scale cocaine distribution conspiracy with a far-reaching distribution network that spanned from Virginia to New York, Pennsylvania, Indiana, Arizona, and other locations. The group concealed the cocaine for distribution and the proceeds from the sale of the drugs by secreting both inside the lining of coolers and inert, hollowed-out fire extinguishers to avoid detection during transportation. Navarro ran the Tucson, Arizona hub of the organization where he recruited others to assist in the distribution of cocaine. He was held responsible today for his role in the distribution of over 160 kilograms of cocaine.
This case was investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation, and the Tucson Police Department. Assistant United States Attorneys V. Kathleen Dougherty and Kevin M. Comstock prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Two Georgia Residents Sentenced for Sex TraffickingRead the Press Release
ALEXANDRIA, Va. – Quintavis Deonte Dumas, age 23, and Koya Tiffany Rooke, age 24, both of Snellville, Georgia, were each sentenced today to 10 years in prison for Sex Trafficking of a Child. Dumas and Rooke were also ordered to pay a total of $17,572.47 in restitution.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, Colonel Edwin C. Roessler, Jr., Chief of the Fairfax County Police Department, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office made the announcement after sentencing by United States District Judge Gerald Bruce Lee.
Dumas and Rooke were found guilty by a jury on September 16, 2013. The evidence at trial showed that Dumas and Rooke were members of an organization that prostituted teenage girls in various states, including Virginia, Florida, South Carolina, and Georgia. Dumas and Rooke frequently would rent the cars that were used to transport the teenage victims to the various places where they were prostituted.
Rooke and Dumas rented hotels rooms where commercial sex acts occurred and allowed their computer to be used to post advertisements that were posted on Backpage.com to solicit customers. Rooke herself was a prostitute and sometimes performed commercial sex acts with customers along with the victims. Rooke was the girlfriend of Quintavis Dumas. Besides transporting victims and renting hotel rooms, Quintavis Dumas carried a firearm to ensure that the proceeds were secure and sometimes obtained drugs that were provided to the teenage victims. In March 2013, two other members of the ring, Edwin Barcus, Jr. and Joshua Deonte Dumas, pleaded guilty to engaging in a Child Exploitation Enterprise. Barcus was sentenced to 25 years of imprisonment while Joshua Dumas was sentenced to 19.9 years of imprisonment.
This case was investigated by the Fairfax County Police Department and the Federal Bureau of Investigation. Assistant United States Attorney Michael J. Frank and Special Assistant United States Attorney C. Alexandria Bogle prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Sterling Man Sentenced ForConducting $270 Million Investment Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – William Dean Chapman, 44, of Sterling, Va., was sentenced today to 144 months in prison, for orchestrating a $270 million stock loan scheme that defrauded his clients of more than $35 million.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office and Mythili Raman, Acting Assistant Attorney General of the Justice Department’s Criminal Division, made the announcement after sentencing by United States District Judge Gerald Bruce Lee.
William Dean Chapman, 44, of Sterling, Va., pleaded guilty to one count of wire fraud on May 23, 2013. Chapman was the founder and owner of Alexander Capital Markets (ACM), whose primary business was to offer a financial product that provided customers with a purportedly fully hedged loan at an above-market rate of interest against a customer’s securities. This served as collateral for the transaction for a percentage – typically between 85 percent and 90 percent – of the securities’ value. For example, in exchange for a customer’s Apple stock, ACM would provide a cash loan to that customer worth 85 percent or 90 percent of the stock’s value. After a period of time – between two and seven years, and typically three years – the customer could receive back their securities, or the equivalent cash value, if they repaid the balance of the loan plus accrued interest. Alternatively, because the loans were non-recourse, the customer could walk away at the end of the redemption period having already received up to 90 percent of the value of their securities.
ACM’s customers were assured that ACM was engaged in hedging transactions such that ACM would be able to return the full value of the securities, or the cash equivalent, at the end of the contract period. In reality, ACM simply sold the securities upon receipt, remitted up to 90 percent of the sales proceeds to its customers as the loan, and retained the remaining sales proceeds for itself and the parties who sold, marketed or facilitated the product.
Because ACM simply sold the securities upon receipt and no legitimate hedge existed, ACM could not return securities, or the cash equivalent, to the customers at the end of the redemption period unless it had sufficient funds to buy back the securities. By in or about April 2008, ACM was functionally insolvent. ACM did not have – and could not have expected to have – sufficient funds to cover its outstanding liabilities. Nevertheless, Chapman continued to solicit new customers despite knowing that ACM would never be able to fulfill its financial obligations.
Over seven years, Chapman took in more than $270 million in stock, and 122 victims lost more than $35 million as a result of this scheme. At the same time that ACM was amassing massive liabilities and failing to repay its existing clients, Chapman used his clients’ money to support a lavish lifestyle by purchasing a custom-built $3 million home in Great Falls, Va.; condominiums in the Turks & Caicos and Pompano Beach, Fla.; and a Lamborghini and Ferrari.
This case was investigated by the FBI’s Washington Field Office. The Criminal Division and the U.S. Attorney’s Office for the Eastern District of Virginia recognize the substantial assistance of the U.S. Securities and Exchange Commission on this case. Assistant United States Attorney Chad Golder and Trial Attorney Henry Van Dyck of the Criminal Division’s Fraud Section prosecuted the case on behalf of the United States.Information Technology Specialist at National Science Foundation Pleads Guilty to Stealing $90,000 from GovernmentRead the Press Release
WASHINGTON – An information technology specialist working for the National Science Foundation (NSF) pleaded guilty late yesterday to theft of government property totaling more than $90,000, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and Acting U.S. Attorney Dana J. Boente of the Eastern District of Virginia.
According to court records, James Troy Clark, 51, of Fredericksburg, Va., was responsible for purchasing information technology supplies and services for his office at NSF using government-issued purchase cards. From 2010 through July 2013, Clark used these purchase cards to purchase items for his personal use and the personal use of others, including cellular telephones and the attendant monthly service charges for those phones; multiple laptop computers and tablets; thousands of dollars in movies, music, and other content from the Apple iTunes store; and numerous other electronic devices and accessories.
The total amount of purchases made by Clark for his and others’ personal use was approximately $94,493. Clark faces a maximum penalty of 10 years in prison when he is sentenced on Feb. 21, 2014.
The case was investigated by National Science Foundation’s Office of Inspector General. The case was prosecuted by Trial Attorneys Kevin Driscoll and Menaka Kalaskar of the Criminal Division’s Public Integrity Section and Mark D. Lytle of the U.S. Attorney’s Office for the Eastern District of Virginia.
Former State Department Contract Employee and Husband Sentenced for $53 Million FraudRead the Press Release
ALEXANDRIA, Va. – Kathleen D. McGrade, age 64, and Brian C. Collinsworth, age 47, of Stafford, Va., were sentenced today to 24 and 18 months incarceration, respectively, by U.S. District Judge Liam O’Grady in the Eastern District of Virginia for committing major fraud against the government, conspiracy to launder monetary instruments, and engaging in unlawful monetary transactions.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Steve A. Linick, Inspector General for the Department of State; and Thomas J. Kelly, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Section, Washington, D.C. Field Office, made the announcement following the sentencing hearing.
According to Court records, McGrade and Collinsworth admitted that McGrade was a contract employee for the Department of State and performed the role of a contract specialist for an office that awarded construction contracts for work done at U.S. embassies worldwide. Collinsworth worked at one of the companies that received contracts. In 2006, the defendants married, but did not tell others at the Department of State. The defendants started a company, the Sterling Royale Group, or SRG, with McGrade being the president and Collinsworth the vice-president and project manager.
In late 2007, McGrade caused a State Department contracting officer to sign a contract between the Department of State and SRG, when McGrade failed to disclose her role in SRG, her marriage, or that proper contracting competitive procedures had not been followed. The contract made SRG eligible to receive task orders for work to be done at embassies and McGrade began steering work to the company. She acted as the contract negotiator between the Department of State engineers responsible for getting the jobs done, on the one hand, and Collinsworth, who was acting on behalf of SRG and the subcontractors, on the other. Between 2008 and 2011, McGrade caused Department of State contracting officers to sign 17 task orders awarding work worth almost $53 million. In 2010, the defendants also lied about their marriage to investigators conducting McGrade’s background investigation regarding renewal of her security clearance.
In the summer of 2011 a news article disclosed the defendants’ marriage, and the Department of State terminated her employment. The Department of State, however, had paid SRG about $39 million, and after the defendants had paid their subcontractors, they still had millions of dollars. Among other things, they bought houses, a condominium, a yacht, a Lexus automobile, jewelry, and a Steinway piano with the fraudulently obtained money. The defendants were ordered to forfeit all of those items in the amount of $7,864,795.
This case was investigated by the Department of State, Office of Inspector General, and the Global Illicit Financial Team, a task force led by the Criminal Investigation Section of the Internal Revenue Service. Assistant United States Attorneys Jack Hanly and Mark D. Lytle are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Former Chief of Remington, Virginia Fire Department Sentenced for Fraud, EmbezzlementRead the Press Release
ALEXANDRIA, Va. – Douglas G. “Bo” Taylor, age 52, of Remington, Va., the former Chief of the Remington Volunteer Fire & Rescue Department (“RVFD”), was sentenced today to 24 months incarceration, to be followed by a term of 3 years of supervised release by U.S. District Judge Leonie M. Brinkema in the Eastern District of Virginia for his role in a wire fraud scheme that defrauded the RVFD and the Prince William County School System and the filing of false individual income tax returns. Taylor was also ordered to pay restitution of $70,833 to the Remington Fire Department, $59,419 to the Prince William County Schools, and $79,576 to the Internal Revenue Service.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; and Thomas J. Kelly, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Section, Washington, D.C. Field Office made the announcement today after the sentencing.
According to court records, Taylor served as the Chief of the RVFD from 1994 through 2011, during a time when the RVFD fire station underwent major renovations and reconstruction with funding, in significant part, from the U.S. Department of Agriculture. Taylor, a licensed Master Electrician, offered to do some of the renovations at the fire station and only seek reimbursement for his out of pocket expenses. Taylor then submitted false invoices which contained charges for materials Taylor did not purchase and charges for labor that, at times, was never performed or was inflated from the hours that were actually performed. Taylor also used a Prince William County Public Schools System (“PWCS”) credit card to purchase some of the materials used at the fire station project (and elsewhere). In total, Taylor defrauded the RVFD of more than $80,000 and the PWCS of approximately $60,000. Finally, Taylor did not disclose the money he fraudulently obtained from the RVFD and winnings from the Virginia lottery on two individual income tax returns filed with the IRS.
This case was investigated by the Federal Bureau of Investigation’s Washington Field Office and the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Mark D. Lytle is prosecuting the case on behalf of the United States. The Office of the U.S. Attorney thanks the following agencies for their assistance in the investigation and prosecution of this matter: United States Department of Agriculture; United States Department of Education, Office of Inspector General; and the Prince William County School System.
Any person who believes they may have information regarding public corruption in the Northern Virginia area is encouraged to call the FBI’s Northern Virginia Public Corruption Hotline at 703-686-6225.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Orthopedic Surgeon Pleads Guilty to Conspiracy to Take Fraudulent Tax DeductionsRead the Press Release
ALEXANDRIA, Va. – Abdul Razaq, an orthopedic surgeon in La Plata, Md, pleaded guilty today to conspiring to defraud the United States Department of Treasury by taking fraudulent tax deductions as part of a decades-long scheme to conceal the transfer of at least $3.5 million from the government of Pakistan to fund lobbying efforts in America related to Kashmir.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; John P. Carlin, Acting Assistant Attorney General for National Security; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division; and Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office, made the announcement after the plea was accepted by United States District Judge Liam O’Grady.
Razaq faces a maximum penalty of five years in prison when he is sentenced on July 18, 2014.
In a statement of facts filed with the plea agreement, Razaq, a member of the Board of Directors of the Society for International Help, a 501(c)(3) tax-exempt charity based in New York, admitted to taking charitable deductions for money that he routed through the Society for International Help, as well as another charity – the Kashmiri American Council (KAC) – even though he was reimbursed at least in part for these deductions in Pakistan. Razaq also admitted to being part of Syed Ghulam Nabi Fai’s financial network of donors, which Fai used to conceal that the KAC was funded with at least $3,500,000 from the Inter-Services Intelligence Directorate, Pakistan’s military intelligence service. Fai was sentenced to serve two years in prison on March 30, 2012.
This investigation is being conducted by the FBI’s Washington Field Office and the IRS Criminal Investigation’s Washington Field Office. The prosecution is being handled by Assistant U.S. Attorney Gordon Kromberg, Trial Attorney John Gibbs of the Counterterrorism Section of the Justice Department’s National Security Division, and Special Assistant U.S. Attorney Allison Ickovic from the Justice Department’s Tax Division.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Gallant Pharma Company and Co-Owner Plead Guilty to Sixteen Charges of Prescription Drug FraudRead the Press Release
ALEXANDRIA, Va. – Gallant Pharma International Inc., headquartered in Arlington, Va., pleaded guilty today to two counts of importation fraud, five counts of selling misbranded drugs, and five counts of distributing prescription drugs without a license. Co-founder and co-owner Syed “Farhan” Huda, 38, of Arlington, Va., entered the guilty plea on behalf of Gallant Pharma, and he also pleaded guilty to one count each of importation fraud, selling misbranded drugs, distributing prescription drugs without a license, and wire fraud.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Antoinette V. Henry, Special Agent in Charge of the Food and Drug Administration’s (FDA) Office of Criminal Investigations; Special Agent in Charge DEA Washington Division, Karl C. Colder; Gary Barksdale, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; Acting Special Agent in Charge Scot R. Rittenberg for U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Washington, D.C.; and M. Douglas Scott, Arlington County Chief of Police, made the announcement after the pleas were accepted by United States District Judge Claude M. Hilton.
“Gallant Pharma exploited some of our most vulnerable citizens to make a profit, including those suffering from cancer and undergoing intravenous chemotherapy. We will prosecute these cases aggressively,” said Acting United States Attorney Boente. FDA Special Agent in Charge Henry added, “Gallant Pharma purchased drugs on the international black market, with no idea whose hands those drugs passed through or what conditions the drugs were stored or shipped in. FDA will continue to vigorously protect the health and safety of medical patients in the United States.”
In the statements of facts filed with the plea agreements, Huda and Gallant Pharma admitted that the company sold many “cold chain” drugs, which are subject to strict temperature controls to protect drug efficacy, and shipped and received those drugs with ice packs that sometimes melted, not with dry ice used by legitimate drug distributors. Many of the drugs sold by Gallant Pharma, including Botox, were required to contain a “black box” warning, the strongest warning issued by the FDA, which indicates that a drug has a significant risk of serious or life-threatening adverse effects. The versions sold by Gallant Pharma did not meet this or other FDA labeling requirements.
Huda is the eighth member of Gallant Pharma to enter a guilty plea in this prosecution. On October 15, 2013, Gallant Pharma co-founder and co-owner Talib Khan, 42, of Montreal, Canada and Barbados, pleaded guilty to selling misbranded chemotherapy and cosmetic drugs, and conspiracy to commit importation fraud, sell misbranded drugs, distribute prescription drugs without a license, and defraud the FDA. Four Gallant Pharma sales representatives and two office managers also have entered guilty pleas for their participation in this scheme.
Huda faces a maximum penalty of 53 years’ imprisonment when he is sentenced on March 28, 2014. Huda, a Canadian citizen, also faces deportation as a result of his conviction. A jury trial is scheduled for January 6, 2014, for alleged Gallant Pharma administrator (and wife of Huda) Deeba Mallick, 36, of Arlington, Va.; alleged supplier Mirwaiss Aminzada, 44, of Dubai, United Arab Emirates, and Montreal, Canada; and alleged drop-shipper and customer Anoushirvan Sarraf, 47, of Rockville, Md.
This case was investigated by FDA’s Office of Criminal Investigations, the Drug Enforcement Agency’s Group 33 Diversion Task Force, ICE, and the U.S. Postal Inspection Service, with assistance from the Arlington County Police Department. Assistant United States Attorneys Lindsay Kelly, Ryan K. Dickey, Jay V. Prabhu, and Maya Song are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.