Western District of Virginia
Press releases recorded for this federal judicial district.
Chief Executive Officer of Armored Vehicle Company Convicted of Defrauding the United StatesRead the Press Release
A federal jury convicted the owner and chief executive officer of an armored vehicle company for his role in a scheme to provide the U.S. Department of Defense with armored gun trucks that did not meet ballistic and blast protection requirements set out in the company’s contracts with the United States.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Acting U.S. Attorney Rick A. Mountcastle of the Western District of Virginia; Special Agent in Charge Adam S. Lee of the FBI’s Richmond, Virginia Field Office and Special Agent in Charge Robert E. Craig Jr. of the Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office, made the announcement.
William Whyte, 72, of King City, Ontario, the owner and CEO of Armet Armored Vehicles of Danville, Virginia, was found guilty after a two-week trial of three counts of major fraud against the United States, three counts of wire fraud and three counts of criminal false claims. Whyte was charged by an indictment in July 2012. Following the verdict, Senior U.S. District Judge Jackson L. Kiser of the Western District of Virginia, who presided over the trial, remanded Whyte into custody pending a full bond hearing. A sentencing date has not yet been scheduled.
Evidence at trial demonstrated that Whyte executed a scheme to defraud the United States by providing armored gun trucks that were deliberately underarmored. According to the trial evidence, Armet contracted to provide armored gun trucks for use by the United States and its allies as part of the efforts to rebuild Iraq in 2005. Despite providing armored gun trucks that did not meet contractual specifications, Whyte and his employees represented that the armored gun trucks were adequately armored in accordance with the contract, the evidence showed. Armet was paid over $2 million over the course of the scheme, including an $824,000 advance payment that the United States made after Whyte personally promised the United States that he would use the money in furtherance of the contract, the evidence showed.
The case was investigated by DCIS and the FBI. The case is being prosecuted by Trial Attorney Caitlin Cottingham of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Heather Carlton of the Western District of Virginia.
United States Attorney’s Office Hosts 3rd Annual Anti-Terrorism ConferenceRead the Press Release
Roanoke, VIRGINIA – The United States Attorney’s Office for the Western District of Virginia hosted the 3rd Annual Anti-Terrorism Conference on September 28, 2017, at the Virginia Western Community College in Roanoke, Acting United States Attorney Rick A. Mountcastle announced.
More than 260 law enforcement officers from across the Commonwealth of Virginia attended to address topics related to protecting communities in the Commonwealth of Virginia from terrorism and the role of local, state, and federal law enforcement in the fight against terrorism.
Acting United States Attorney Mountcastle stressed the importance of the partnerships between local, state, and federal law enforcement in preventing terrorism. “More than 85 percent of law enforcement officers work at the state or local level. You are on the front lines in the noble task of keeping our communities safe. We hope that this conference will allow you to share your experiences, strengthen your partnerships, and enhance your ability to protect national security and prevent terrorist attacks . . . It’s our goal and intention that this conference will serve to enhance and foster the teamwork and coordination among law enforcement that is so important to our vital mission of protecting the public from terrorism.”
The United States Attorney’s Office for the Western District of Virginia holds Antiterrorism Advisory Council meetings multiple times per year and the annual antiterrorism conference to discuss international and domestic terrorism threats in the Western District of Virginia, to disseminate information and provide training to federal, state, and local law enforcement officers, and to enhance teamwork and cooperation among public safety agencies.
Charlottesville Man Charged in Federal Criminal ComplaintRead the Press Release
Charlottesville, VIRGINIA – A Charlottesville man was charged this week with federal child pornography charges, Acting United States Attorney Rick A. Mountcastle announced.
Richard Wellbeloved-Stone, 52, was charged via a federal criminal complaint filed this week in the United States District Court for the Western District of Virginia in Charlottesville with one count of production of child pornography and one count of possession of child pornography. Wellbeloved-Stone made his initial court appearance in federal court this morning.
The investigation of the case is ongoing and is being conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Charlottesville Police Department, the Virginia State Police and the Albemarle County Police Department. Assistant United States Attorney Nancy S. Healey and Trial Attorney Leslie Fisher of the Criminal Division’s Child Exploitation and Obscenity Section will prosecute the case for the United States.
A criminal complaint is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Acting United States Attorney Mountcastle Delivers Remarks at 3rd Annual WDVA ATAC ConferenceRead the Press Release
It’s an honor for me to be here with more than 200 law enforcement officers from Virginia. You represent the thin blue line that protects our families, our communities, and our nation. You run toward danger when everyone else is running away from it. You work day shifts and night shifts, on weekends and holidays, in blizzards and rainstorms, during parades and riots. Your offices never close. And you always need to be at your best, especially when other people are at their worst. You sacrifice your personal safety, time with your families, and so much more all for the cause of justice. On behalf of the Department of Justice and the United States Attorney’s Office, thank you for all you do. We understand your work. We appreciate your work. And most importantly, we support your work.
More than 85 percent of law enforcement officers work at the state or local level. You are on the front lines in the noble task of keeping our communities safe. We hope that this conference will allow you to share your experiences, strengthen your partnerships, and enhance your ability to protect national security and prevent terrorist attacks.
The threats we face in the Western District of Virginia are always changing. For evidence of this, look no further than the events in Charlottesville on August 11 and 12. The news reports coming from Charlottesville indicate that large numbers of individuals traveled from places outside of Virginia, including Ohio, New Hampshire, and Georgia, for the purpose of inciting violent confrontations. That violence resulted in the unfortunate deaths of three of our citizens – two Virginia State Police pilots, Lt. Jay Cullen and Trooper Berke Bates, who died when their helicopter crashed while providing air coverage of the violence; and Heather Heyer, a citizen who was killed while simply exercising her First Amendment Right to peacefully march in protest. Our condolences go out to the families of these heroes.
The Charlottesville incident teaches us that if we want to prevent attacks, we need to be vigilant. The key is to collect all available information and generate actionable intelligence to disrupt terrorists before they strike.
We must never let down our guard, because our enemies do not fight fair. Terrorists are cowards who target unsuspecting people going about their lives — watching a sports event, dancing at a nightclub, traveling to work, walking down a street.
Since I was appointed to serve as the Acting United States Attorney on January 7 of this year, I’ve taken steps to increase our ability to support our law enforcement partners. I’ve prioritized the U.S. Attorney’s Office’s National Security and Critical Incident Response program. I’ve expanded and formalized our National Security/Critical Incident Response Team. We’re conducting monthly and quarterly meetings to discuss National Security and Domestic Terrorism threats in our district and to prepare our office to deal with them. Finally, on August 28, I appointed Heather Carlton, an Assistant United States Attorney assigned to our Charlottesville branch office, to serve as the Anti-Terrorism Advisory Coordinator or ATAC. Heather is not able to be with us today because she’s in a jury trial in Danville prosecuting one of our national security cases. However, I hope you get to meet Heather in the near future because she is an outstanding attorney and brings enthusiasm, initiative, and energy to our National Security/Critical Response program.
Of course, you all know about the violence in Charlottesville on August 12. I can tell you that despite the criticisms of those who are predisposed to blame law enforcement or to deflect responsibility from misguided decision-making, law enforcement responded to the difficult circumstances forced upon them in Charlottesville in an outstanding manner. Moreover, the team work of the federal, state, and law enforcement officers in Charlottesville on August 12 and afterward was a shining example of law enforcement at its best. One take-away from Charlottesville is that coordination and teamwork among federal, state, and local law enforcement agencies is critical to the success of our anti-terrorism mission.
It’s our goal and intention that this conference will serve to enhance and foster the teamwork and coordination among law enforcement that is so important to our vital mission of protecting the public from terrorism. So, thank you all for participating in this conference. The threats we face will continue to evolve. Our mission to keep our neighbors and our communities safe remains the same. And the bravery that you bring to that mission endures.
Thank you for taking on this challenging work. It’s an honor for me to serve with you in this important mission.
BB&T Bank Employee Admits to Stealing over $500,000Read the Press Release
Abingdon, VIRGINIA – A BB&T employee, who over a period of approximately four years embezzled over a half-million dollar, faces up to 30 years in federal prison after she pleaded guilty today in the federal court in Abingdon to embezzlement charges, Acting United States Attorney Rick A. Mountcastle announced.
Anna B. Holt, 48, of Staffordsville, Va., waived her right to be indicted and pleaded guilty today to embezzlement by a bank employee of moneys of the bank or entrusted to the custody of the bank.
Holt worked for BB&T Bank as a branch banker at the New River Branch in Pearisburg, Virginia. The defendant admitted today that from around 2013 to August 2017, while being employed at the bank, she embezzled a total of $565,790.41 from 14 separate accounts holders. Holt used various methods to embezzle the money, including making withdrawals from customer accounts, cashing customers’ bonds and keeping the proceeds, and creating fake credit accounts in the names of relatives and withdrawing the loan proceeds. Some of the money embezzled was used to repay accounts from which Holt had previously stolen money.
Sentencing is scheduled for December 19, 2017, at 2:30 p.m. before United States District Court Judge James P. Jones in Abingdon.
The investigation of the case was conducted by the United States Secret Service. Assistant United States Attorney Randy Ramseyer is prosecuting the case for the United States.
Charlottesville Man Sentenced on Federal Drug ChargeRead the Press Release
Charlottesville, VIRGINIA – A Charlottesville man, who distributed crack cocaine throughout the Charlottesville Region, was sentenced yesterday in the United States District for the Western District of Virginia in Charlottesville, Acting United States Attorney Rick A. Mountcastle announced.
Ricco Jamel Harris, 35, was sentenced yesterday to 14 years in federal prison. Harris previously pleaded guilty to one count of distributing and possessing with the intent to distribute 280 grams or more of cocaine base.
According to evidence previously presented by Assistant United States Attorney Ronald M. Huber, Harris distributed crack cocaine throughout Central Virginia between late 2012 and November 2015. The evidence established that Harris was a major supplier of cocaine in Charlottesville. He also supplied the drug to members of a cocaine distribution ring operating out of the Culpeper area, whose members were previously prosecuted in Federal court.
During the period at issue, agents with the Jefferson Area Drug Task Force [JADE] made a series of controlled buys from Harris and seized over 75 grams of crack cocaine during a traffic stop. Ultimately, it was determined that Harris was responsible for the distribution of over 4 kilograms of crack cocaine between late 2012 and November 2015.
The investigation of the case was conducted by the Jefferson Area Drug Task Force, the Federal Bureau of Investigation, the Drug Enforcement Administration and the City of Charlottesville Police Department. Assistant United States Attorney Ronald M. Huber prosecuted the case for the United States.
Registered Nurse Sentenced for Tampering with FentanylRead the Press Release
Abingdon, VIRGINIA – A registered nurse, who worked at a medical facility in Roanoke, Va., was sentenced today in the United States District Court for the Western District of Virginia in Abingdon for tampering with a consumer product, namely fentanyl, Acting United States Attorney Rick A. Mountcastle announced today.
Kevin Carter, 28, of Roanoke, previously pleaded guilty to one count of tampering with a consumer product, fentanyl, that affects interstate or foreign commerce, with reckless disregard for the risk that another person be placed in danger of death or bodily injury. Today in District Court, Carter was sentenced to imprisonment for a term of 18 months.
On or about December 15, 2016, Carter tampered with liquid syringes of fentanyl by removing a syringe of liquid fentanyl from the anesthesia cart in an operating room for his own use and replacing the stolen syringe with another syringe, labeled fentanyl, which contained no fentanyl.
The investigation of the case was conducted by the U.S. Food and Drug Administration’s Office of Criminal Investigations with the assistance of the Virginia State Police and the Virginia Department of Health Professions. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
Pair Plead Guilty to Federal Conspiracy ChargeRead the Press Release
Abingdon, VIRGINIA – A pair of men from India, who made cold calls to the United States for the purpose of selling versions of pharmaceutical drugs illegal in the United States, including controlled substances, pleaded guilty today in the United States District Court in Abingdon to federal conspiracy charges, Acting United States Attorney Rick A. Mountcastle announced.
Alok Kailashnath Jaiswal, 32, of Azangarh, India and Rahil Parvez Mir, 25, of Mumbai, India, waived their rights to be indicted today and each pleaded guilty to one count of conspiracy to commit offenses against the United States. Specially, to illegally distribute controlled substances, to fraudulently and knowingly import into the United States any merchandise contrary to law, and, to introduce into interstate commerce a drug that was misbranded, with the intent to defraud and mislead.
Jaiswal and Mir made cold calls from India to individuals in the United States to solicit orders for versions of pharmaceutical drugs, including controlled substances, which were not approved for sale in the United States. The defendants then obtained payment, typically via wire transfer, from the United States purchasers and illegally shipped the drugs to recipients in the United States.
A law enforcement officer, working in an undercover capacity in the Western District of Virginia, made several purchases from Jaiswal and Mir. The substances shipped included acetaminophen with codeine (Schedule III), diclofenac (Schedule IV), lorazepam (Schedule IV), human growth hormone, sildenafil and tadalafil.
Former BB&T Senior Vice-President and Regional Branch Operations Manager SentencedRead the Press Release
Abingdon, VIRGINIA – A former senior vice-president with BB&T, who stole cash from bank vaults to which she had access through her employment with the bank, was sentenced yesterday on federal embezzlement charges for which she previously pleaded guilty, Acting United States Attorney Rick A. Mountcastle announced.
Melissa D. Huffman, 47, of Roanoke, Va., previously pleaded guilty to one count of embezzlement from a FDIC-insured bank. Yesterday, United States District Court Judge James P. Jones sentenced Huffman to imprisonment for a term of 14 month. As part of her plea agreement, Huffman made full restitution to the bank in the amount of $31,850.
Between 2014 and December 2016, Huffman worked as a senior vice-president and regional branch operations manager for BB&T. As part of her official duties, Huffman had access to the vaults of BB&T’s banks throughout the Western District of Virginia. On several occasions, Huffman stole cash from the vaults she visited and caused the shortages to be attributed to subordinate employees at the banks. The branches from which she stole cash included Boonsboro, Fort Hill, Martinsville, Tanglewood, Tazewell, and Warrenton.
The investigation of the case was conducted by the United States Secret Service. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
Christiansburg Man Convicted of Tax, Bankruptcy Fraud ChargesRead the Press Release
Roanoke, VIRGINIA – A Christiansburg man, who filed multiple false tax returns between 2008 and 2009 in an attempt to receive fraudulent tax refunds from the Internal Revenue Service, was convicted this week on multiple tax fraud and bankruptcy fraud charges, Acting United States Attorney Rick A. Mountcastle announced.
Regan Dwayne Reedy, 55, a.k.a. “Wegani Diwaini Klandag Anisahoni,” was found guilty by a federal jury this week on one count of conspiracy to commit tax fraud, two counts of making a false declaration in a bankruptcy proceeding, two counts of concealment of property in a bankruptcy proceeding and three counts of false testimony in a bankruptcy proceeding.
According to evidence presented at trial by Assistant United States Attorney Joseph W. H. Mott, Reedy filed a number of fraudulent tax returns for individuals, claiming refunds. The returns were part of a “1099-OID scheme”, in which the returns claimed excessive federal withholding that resulted in excessive claims for refunds. Most of the fraudulent returns were detected before refunds were issued, however, one refund in the amount of $156,191 was issued.
Twice in 2012 and again in 2014, Reedy and his wife filed Chapter 7 bankruptcy. In those filings, Reedy omitted assets from their bankruptcy schedules and concealed assets from the bankruptcy trustee. At a creditors’ meeting, he falsely testified as to his sources of support and assets.
The investigation of the case was conducted by the Internal Revenue Service – Criminal Investigations, the Federal Bureau of Investigation, and the U. S. Trustees’ Office. Assistant United States Attorney Joseph W. H. Mott prosecuted the case for the United States.
Five Sentenced for Conspiring to Obstruct IRS, Wire FraudRead the Press Release
Abingdon, VIRGINIA – Five Max Meadows residents, who skimmed over $1 million in cash from a Wythe County store then failed to pay taxes on that money, were sentenced today on federal conspiracy charges, Acting United States Attorney Rick A. Mountcastle announced.
Today in U.S. District Court, the five defendants, all from Max Meadows, Virginia, were sentenced as follows:
Gary Daniel Musick, age 46, imprisonment for a term of 18 months; fine of $10,000
Larry Dean Ball, age 68, imprisonment for a term of 12 months and 1 day; fine of $5,500
Harold Hart, age 80, probation for a term of 24 months; fine of $55,000
Katrina Rose Freeman, age 42, probation for a term of 24 months; fine of $10,000
Mary Carroll Ball, age 67, probation for a term of 24 months; fine of $5,500
Pursuant to plea agreements, the defendants each pled guilty to conspiracy to impair, impede or obstruct the lawful function of the Internal Revenue Service and to commit wire fraud. In addition, the defendants paid over $440,000 in evaded federal taxes, interest and penalties, over $100,000 in evaded state taxes, interest, and penalties, and a forfeiture of over $29,000. The United States seized over $275,000 in cash from the defendants while executing search warrants in Wythe County in August 2016.
The Old Fort Western Store is a retail facility that sells western apparel, footwear, saddles and other items in Wythe County. It was opened in the 1990s by Hart and Larry Ball. In 2009, ownership was transferred to Musick, Freeman, and another person. Hart is the grandfather of Freeman and Musick and is the stepfather of Larry Ball. Larry Ball and Mary Ball are the parents of Freeman.
Beginning in 2010, Hart, Larry Ball, Mary Ball, Freeman and Musick agreed that cash would be skimmed from the income of Old Fort, no sales tax would be paid on the skimmed cash, some of the skimmed cash would be used to pay certain employees a cash payroll in addition to their regular pay checks, some of the skimmed case would be used to pay Old Fort Partnership rent in addition to the rent check it received each month and the remainder of the skimmed cash would be disturbed to Hart, Larry and Mary Ball, Musick and Freeman and another person.
Between 2010 and 2016, the conspirators skimmed $1,121,458 in cash from Old Fort for the purpose of hiding this income from the Internal Revenue Service and the Virginia Department of Taxation.
The investigation of the case was conducted by the Bristol, Virginia, office of the Internal Revenue Service – Criminal Investigation, with the assistance of the Washington D.C. Field Office, the Johnson City Office, and the Virginia State Police (Wytheville). Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
Knoxville Man Pleads Guilty to Conspiring to Defraud the FDARead the Press Release
Abingdon, VIRGINIA – A Tennessee man, who operated a business that created illegal drugs for the purpose of evading existing Food and Drug Administration laws, pleaded guilty last week in the United States District Court for the Western District of Virginia in Abingdon to a federal conspiracy charge, Acting United States Attorney Rick A. Mountcastle announced.
Billy K. Groce, 65, of Knoxville, waived his right to be indicted and pleaded guilty last week to a one count Information that charged him with conspiracy to defraud the United States by impeding, impairing obstructing and defeating the lawful functions of the Food and Drug Administration.
According to evidence presented by Assistant United States Attorney Randy Ramseyer, Groce operated a business that was created for the purpose of illegally circumventing the FDA’s regulation of the interstate shipment and labeling of veterinary drugs. Groce’s business illegally obtained, stored, sold and caused to be shipped, drugs from veterinary drug manufacturers and distributers. Groce’s business was not a licensed wholesale, a licensed pharmacy or a veterinary clinic.
Groce shipped drugs to co-conspirator Marlin Webb, who was the store manager at the Carroll County Cooperative. Webb then illegally sold the veterinary prescription drugs through the cooperative. Webb previously pleaded guilty to one count of conspiracy to defraud the FDA and was sentenced to one year of probation and paid $125,000 in forfeiture and other payments at the time of his guilty plea.
The investigation of the case was conducted by the U.S. Food and Drug Administration – Office of Criminal Investigations and the Virginia Department of Health Professions. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
Roanoke Woman Pleads Guilty to Child Sexual Exploitation, Child Pornography ChargesRead the Press Release
Roanoke, VIRGINIA – A Roanoke woman, who repeatedly abused a 5-year-old child in her custody, pleaded guilty this morning in the United States District Court for the Western District of Virginia in Roanoke to a number of charges related to child sexual exploitation and child pornography, Acting United States Attorney Rick A. Mountcastle announced.
Shannon Marie Bobrosky, 23, of Roanoke, pleaded guilty to two counts of production of child pornography, one count of permitting the production of child pornography involving a child she had custody or control of at the time, and one count of distribution of child pornography.
According to evidence presented at this morning’s guilty plea hearing by Supervisory Assistant United States Attorney Laura Day Rottenborn, Bobrosky was the child victim’s legal guardian. Although she was responsible for the child’s physical, emotional and mental well-being, Bobrosky instead sexually abused the child, took digital photographs of the abuse, and distributed the images using text message applications and other means. According to the evidence, Bobrosky appears to have been motivated by her desire to satisfy various sexual fetishes, to include having a submissive relationship with males interested in child pornography and/or pedophilia, and seeking sexual gratification by providing such males with images of the actual or simulated sexual molestation of the child, as well as fantasies regarding the rape of the child by those males.
Acting United States Attorney Mountcastle commended Supervisory AUSA Rottenborn, and U.S. Immigration and Customs Enforcement-Homeland Security Investigations, the Federal Bureau of Investigation and the Roanoke City Police Department, whose outstanding investigation and prosecution rescued the child-victim from further sexual abuse.
Bureau of Prisons Employees Indicted by Federal Grand JuryRead the Press Release
Abingdon, VIRGINIA – A federal grand jury in Abingdon returned two indictments yesterday against four United States Bureau of Prisons correctional officers who were employed at United States Penitentiary at Lee County (“USP-Lee”), Acting United States Attorney Rick A. Mountcastle announced.
The indictments returned against Charles Carter, 47, of Wise, Va., Ryan Sluss, 27, of Coeburn, Va., and William Marshal, 49, of Jonesville, Va., charge them each with one count of making a false statement and using a false writing in a matter within the executive branch of the United States government. The indictment returned against Jerry Shuler, 38, of Big Stone Gap, Va., charges him with ten counts of making a false statement and using a false writing in a matter within the executive branch of the United States government.
The indictment alleges that Sluss, Marshall, Carter, and Shuler, while employed at USP-Lee, falsified forms in the Special Housing Unit stating they, or other officers, had done required checks on inmates when the checks were in fact not conducted.
The investigation of the case was conducted by the Department of Justice Office of the Inspector General and the United States Bureau of Prisons. Assistant United States Attorney Zachary T. Lee will prosecute the case for the United States.
A Grand Jury Indictment is only a charge and not evidence of guilt. The defendants are entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Marion Pair Sentenced on Methamphetamine ChargesRead the Press Release
Roanoke, VIRGINIA – A pair of Marion residents were sentenced today in the United States District Court for the Western District of Virginia in Roanoke on federal drug conspiracy charges, Acting United States Attorney Rick A. Mountcastle announced.
Charles J. Wojciechowicz, 33, of Marion, was sentenced today to 60 months in federal prison. Wojciechowicz previously pled guilty to one count of conspiracy to distribute a measurable quantity of a mixture containing methamphetamine.
In a separate hearing today in U.S. District Court in Roanoke, Danny Douglas Meadows Jr., 41, of Marion, was sentenced to 66 months in federal prison. Meadows also previously pled guilty to one count of conspiracy to distribute a measurable quantity of a mixture of methamphetamine.
The investigation of the case was conducted by the Drug Enforcement Administration, the Virginia State Police, the Smyth County Sheriff’s Office and the Claytor Lake Drug Task Force. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.
Former Floyd Pharmacist Sentenced for StructuringRead the Press Release
Roanoke, VIRGINIA – A former Floyd pharmacist, who structured cash deposits to avoid Internal Revenue Reporting Requirements, was sentenced today in the United States District Court for the Western District of Virginia.
Venkata Subrahmanya Ashok Raju Pinnamaraju, 40, of Roanoke, was sentenced today to 18 months incarceration to be followed followed by 1 year of supervised release. Pinnamaraju was also ordered to pay a fine of $200,000, which has been paid. Previously, Pinnamaraju waived his right to be indicted and pled guilty to a one count Information charging him with structuring financial transactions to avoid reporting requirements.
According to information presented at previous hearings by Assistant United States Attorney Jennie L. M. Waering, Pinnamaraju was the part owner and the managing pharmacist of a Floyd Pharmacy, retail pharmacy in the Town of Floyd, Virginia. As the managing pharmacist, the defendant was in charge of ordering and dispensing prescription medication, supervising pharmacy employees, billing insurance providers and overseeing the pharmacy’s finances and accounting.
In the normal course of business, Floyd Pharmacy collected large amounts of United States currency from its customers. However, instead of making a single deposit of the cash accumulated over a period of several days, the defendant made a series of smaller case deposits to avoid the currency transaction reporting requirement. Pinnamaraju conducted at least a dozen structuring deposits between 2011 and 2016, depositing cash totaling approximately $170,000.
The investigation of the case was conducted by the Federal Bureau of Investigation, the Virginia Attorney General Mark Herring’s Medicaid Fraud Investigation Unit and the United States Health and Human Service – Office of the Inspector General. Assistant United States Attorney Jennie L. M. Waering prosecuted the case for the United States.
Seven Indicted on Federal Drug Conspiracy ChargesRead the Press Release
Abingdon, VIRGINIA – A federal grand jury sitting in the United States District Court for the Western District of Virginia in Abingdon have indicted seven individuals on federal drug conspiracy charges, Acting United States Attorney Rick A. Mountcastle announced.
The grand jury has charged Jeremy Rick Sturgill, 40, of Jonesville, Va., Tony Lynn Ketron, 27, of Church Hill, Tenn., Todd Houston Conyer, 29, of Pennington Gap, Va., Leslie Ann Clasby, 42, of Jonesville, Va., Jason Dale Moore, 36, of Jonesville, Va., William Benjamin Brewer, 35, of Jonesville, Va. and Kristina Karen Burton, 43, of Jonesville, Va.
The indictment, unsealed last week, charges each of the seven defendants with conspiracy to distribute and possess with the intent to distribute 50 grams or more of methamphetamine. Sturgill is also charged with three counts of possession with the intent to distribute methamphetamine, one count of maintaining a place for the purpose of manufacturing, distributing and using methamphetamine, two counts of possession of a firearm by a previously convicted felon and two counts of possession of a firearm in furtherance of a drug trafficking crime. Ketron is also charged with two counts of possession with the intent to distribute methamphetamine, two counts of possession of a firearm by a previously convicted felon and two counts of possession of a firearm in furtherance of a drug trafficking crime.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Lee County Sheriff’s Office and the Southwest Virginia Drug Task Force. Special Assistant United States Attorney Suzanne Kerney-Quillen, a Virginia Assistant Attorney General assigned to the Attorney General’s Major Crimes and Emerging Threats Section, prosecuted the case for the United States.
A Grand Jury Indictment is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Roanoke Man Sentenced on Drug, Gun ChargesRead the Press Release
Roanoke, VIRGINIA – A Roanoke man was sentenced yesterday to federal prison after previously pleading guilty to drug and gun charges, Acting United States Attorney Rick A. Mountcastle announced.
De’Shae Antonio Webb, 27, of Roanoke, was sentenced yesterday to 46 months in federal prison. Webb previously pled guilty today to one count of distribution of cocaine and one count of possession of a firearm by a previously convicted felon.
According to evidence presented at a previous hearing, Webb sold cocaine to a police informant and was observed to be in possession of a firearm during the drug transaction.
The Roanoke City Police Department, the Roanoke HIDTA and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation of the case. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.
Virginia Couple Pleaded Guilty to Tax Fraud and Structuring More Than $475,000Read the Press Release
A Concord, Virginia, couple pleaded guilty to tax and currency structuring charges, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Rick A. Mountcastle for the Western District of Virginia.
Barry Edwards, 53, pleaded guilty to corruptly endeavoring to obstruct the due administration of the internal revenue laws and Joanne Edwards, 50, pleaded guilty to filing a fraudulent tax return. Both also pleaded guilty to conspiring to structure cash transactions.
According to the plea agreements and information provided to the court, Barry and Joanne Edwards created two purported religious missions in 2006, which they used as nominees to receive income Barry Edwards earned selling nutritional supplements. The Edwards deposited this income into bank accounts they held in the nominee names. The Edwards withdrew more than $475,000 in cash from the nominee accounts, in increments less than $10,000, to evade bank-reporting requirements. They deposited the funds into their personal bank accounts to pay personal expenses including car payments and their children’s tuition. Barry also used cash to purchase a five-acre farm in Concord, Virginia. The Edwards filed fraudulent 2013 through 2015 tax returns with the Internal Revenue Service (IRS) that did not report all of their income.
Sentencing is scheduled for Jan. 18, 2018 before U.S. District Court Judge Norman K. Moon. The Edwards each face a statutory maximum sentence of five years in prison on the conspiracy count. Barry Edwards also faces a statutory maximum sentence of three years in prison for the corrupt endeavor to impair and impede the due administration of the internal revenue laws count and Joanne Edwards faces a statutory maximum sentence of three years in prison on the fraudulent return count. The Edwards also face a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Mountcastle thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorney Sean Beaty of the Tax Division and Special Assistant U.S. Attorney Kari Munro, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Martinsville Doctor Arrested on Federal Drug ChargeRead the Press Release
Abingdon, VIRGINIA – A Martinsville doctor of osteopathic medicine was arrested and charged by federal authorities with possessing with intent to distribute schedule II controlled substances, Acting United States Attorney Rick A. Mountcastle announced.
Joel A. Smithers, of Greensboro, NC, was arrested today and charged in a federal criminal complaint with illegally possessing with the intent to distribute schedule II substances. At the conclusion of a hearing in U.S. District Court in Abingdon, Smithers was released on a $25,000 bond. As a condition of his release, he is prohibited from prescribing any controlled substances. Smithers, a licensed doctor of osteopathic medicine, has operated The Center for Integrative Health at Smithers Community Healthcare in Martinsville, Virginia since September 2015.
The investigation of the case is being conducted by the Drug Enforcement Administration’s Tactical Diversion Squad. Assistant United States Attorneys Zach Lee and Randy Ramseyer are prosecuting the case for the United States.
A criminal complaint is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Former Madison County, Virginia Detective Pleads Guilty to Sexually Exploiting MinorsRead the Press Release
A former detective with the Madison County Sheriff’s Office, who was most recently assigned to the Internet Crimes Against Children Task Force, pleaded guilty today in the U.S. District Court for the Western District of Virginia in Charlottesville to multiple charges of sexually exploiting minors. Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney Rick A. Mountcastle for the Western District of Virginia made the announcement.
Bruce Arlie Harvey, 41, of Reva, Va., pleaded guilty to three counts of transporting a minor across state lines with the intent to engage in criminal sexual acts, three counts of interstate travel with minors with the intent to engage in illicit sexual conduct and one count of possession of child pornography.
According to the information presented during the guilty plea hearing, Harvey, while a karate instructor at the Virginia Tong Leong School of Karate in Madison, began making sexual advances toward the two minor female victims in this case while they were students at the karate school. Harvey engaged in illegal sexual acts with these children after he began giving them private karate lessons and began traveling with each of them to karate competitions and other events at various out-of-state locations, including Ocean City, Md. This conduct took place between 1998 and 2007.
At the time of his arrest on May 3, investigators recovered a Sony microcassette in a bedroom closet that contained a film clip dated Feb. 14, 2007, that showed one of the victims performing a sexual act with Harvey in his Madison County home.
The FBI and the Virginia State Police investigated this case. Assistant U.S. Attorney Nancy S. Healey and Trial Attorney Lauren S. Kupersmith of the Child Exploitation and Obscenity Section of the Justice Department’s Criminal Division are prosecuting this case.
Former Madison County Detective Pleads Guilty to Sexually Exploiting MinorsRead the Press Release
Charlottesville, VIRGINIA – A former detective with the Madison County Sheriff’s Office, who was most recently assigned to the Internet Crimes Against Children Task Force, pled guilty today in the United States District Court for the Western District of Virginia in Charlottesville to multiple charges of sexually exploiting minors, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting United States Attorney Rick A. Mountcastle announced.
Bruce Arlie Harvey, 41, of Reva, Va., pled guilty today to three counts of transporting a minor across state lines with the intent to engage in criminal sexual acts, three counts of interstate travel with minors with the intent to engage in illicit sexual conduct, and one count of possession of child pornography.
“Harvey abused his positions of trust as a law enforcement officer and as a karate instructor to sexually exploit two of his female karate students beginning when each was approximately 13 years old, and lasting at least two years for one victim, and at least four years for the other victim,” Acting United States Attorney Rick A. Mountcastle said today. “This case shows that child predators infiltrate every aspect of our society, including law enforcement. Parents should always be on guard and should always remember that child predators may gravitate to vocations and places where they can occupy positions of trust and have easy access to children. Criminals who exploit children should know that there is no longer a statute of limitations for these types of crimes and the United States Attorney’s Office will aggressively prosecute them no matter how long ago they exploited their victims,” said Acting United States Attorney Mountcastle. “While there is little that we can do to reverse the trauma and harm that Harvey inflicted on the two innocent victims, it is our sincerest hope that this prosecution will be a first step toward healing, restoration, and renewal for each of them,” he added. Acting United States Attorney Mountcastle commended the teamwork of the Federal Bureau of Investigation, the Virginia State Police, and the prosecutors.
“Harvey was every parent's worst nightmare. A multi-victim predator camouflaging himself in positions of trust. School resource officer. Child exploitation investigator. Karate instructor. Despicable,” said Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Division. “I want to, once again, thank the United States Attorney's Office for their tenacity, for their expertise, and for their professionalism.”
According to the information presented during the guilty plea hearing, Harvey, while a karate instructor at the Virginia Tong Leong School of Karate in Madison, began making sexual advances toward the two minor female victims in this case while they were students at the karate school. Harvey engaged in illegal sexual acts with these children after he began giving them private karate lessons and began traveling with each of them to karate competitions and other events at various out-of-state locations, including Ocean City, Maryland.
At the time of his arrest on May 3, 2017, investigators recovered a Sony microcassette in a bedroom closet that contained a film clip dated February 14, 2007, that showed one of the victims performing a sexual act with Harvey in his Madison County home.
The Federal Bureau of Investigation and the Virginia State Police investigated this case. Assistant United States Attorney Nancy S. Healey and Department of Justice- Child Exploitation and Obscenity Section Trial Attorney Lauren S. Kupersmith are prosecuting it.
Joint Statement from United States Attorney’s Office for the Western District of Virginia, Federal Bureau of Investigation and the Civil Rights DivisionRead the Press Release
Acting United States Attorney Rick A. Mountcastle has released the following statement in conjunction with the FBI and DOJ’s Civil Rights Division:
“The Richmond FBI Field Office, the Civil Rights Division, and the US Attorney’s Office for the Western District of Virginia have opened a civil rights investigation into the circumstances of the deadly vehicular incident that occurred earlier Saturday morning. The FBI will collect all available facts and evidence and will ensure that the investigation is conducted in a fair, thorough and impartial manner. As this is an ongoing investigation we are not able to comment further at this time.”
Norton Doctor Pleads Guilty to Federal Drug ChargeRead the Press Release
Abingdon, VIRGINIA – A Norton, Virginia physician who specialized in urology pled guilty yesterday in the United States District Court for the Western District of Virginia in Abingdon to a federal drug distribution charge, Acting United States Attorney Rick A. Mountcastle, Virginia Attorney General Mark Herring and Karl C. Colder, Special Agent in Charge of the DEA’s Washington Field Office announced.
Felix Eugene Shepard, Jr., 56, pled guilty yesterday to one count of distributing oxycodone, a schedule II controlled substance. A sentencing hearing has been scheduled for November 1, 2017 at 10:30 a.m. in U.S. District Court in Big Stone Gap.
According to evidence presented to the court at yesterday’s guilty plea by Special Assistant United States Attorney Suzanne Kerney-Quillen, Shepard admitted to writing 47 prescriptions for oxycodone to a patient he was involved in a sexual relationship with. Shepard admitted to the Virginia Board of Medicine that the narcotic prescriptions were written to the patient outside of a bona fide doctor-patient relationship. Shepard continuously prescribed narcotic medications to the patient over an extended period without performing adequate physical examinations, evaluations, or diagnostic testing, for conditions that were outside the scope of his urological practice. In a statement Shepard made to an investigator from the Virginia Board of Medicine, he expressed concern regarding the amount of oxycodone he had prescribed the patient and said the amounts were indicative of addiction. However, Shepard took no action to address the patient’s possible addiction and/or diversion of the oxycodone he prescribed the patient. Shepard prescribed the patient over 2,000 dose units of oxycodone, yet the patient’s file contained few notes or records concerning treatment or the reason the prescriptions were written.
The investigation of the case was conducted by the Drug Enforcement Administration-Tactical Diversion Squad. Special Assistant United States Attorney Suzanne Kerney-Quillen, a Virginia Assistant Attorney General assigned to the Attorney General’s Major Crimes and Emerging Threats Section, prosecuted the case for the United States.
Vansant Woman Sentenced for Stealing Mail, Aggravated Identity TheftRead the Press Release
Abingdon, VIRGINIA – A Vansant woman was sentenced today for stealing mail after authorities determined she was breaking into Post Office boxes and stealing bankcards and other items, Acting United States Attorney Rick A. Mountcastle announced.
Jada Ratliff, 38, of Vansant, Va., was sentenced today in the United States District Court for the Western District of Virginia in Abingdon to 28 months in prison and ordered to pay $2,669 in restitution. Ratliff previously pled guilty to one count of theft of mail and one count of aggravated identity theft
According to evidence presented at previous hearings by Assistant United States Attorney Zachary T. Lee, Ratliff used a screwdriver to open Post Office Boxes at a number of locations and steal the contents of those boxes. Some of the items Ratliff stole were bankcards issued in the names of others, which she then used, without authorization or approval.
The investigation of the case was conducted by the United States Postal Inspection Service. Assistant United States Attorney Zachary T. Lee prosecuted the case for the United States.
Harrisonburg Man Sentenced for Submitting Fraudulent Voter Registration FormsRead the Press Release
Harrisonburg, VIRGINIA – A former staffer with Harrisonburg Votes, a political organization affiliated with the Democratic party, who was paid to register area voters during the weeks leading up to the 2016 National Election, was sentenced today in federal court for causing 18 fraudulent Virginia Voter Registration Forms to be submitted to the local registrar’s office, Acting United States Attorney Rick A. Mountcastle announced.
Andrew J. Spieles, 21, of Harrisonburg, was sentenced today to 100 days incarceration. Spieles previously pled guilty to a one-count Information charging him with knowingly transferring false Virginia Voter Registration Forms.
According to evidence presented at a previous hearing by Assistant United States Attorney Jeb Terrien, in July 2016 Spieles’ job was to register as many voters as possible and reported to Democratic Campaign headquarters in Harrisonburg.
In August 2016, Spieles was directed to combine his registration numbers with those of another individual because their respective territories overlapped. After filling out a registration form for a voter, Spieles entered the information into a computer system used by the Virginia Democratic Party to track information such as name, age, address and political affiliation. Every Thursday an employee/volunteer hand-delivered the paper copies of the registration forms to the Registrar’s Office in Harrisonburg.
On August 15, 2016, an employee of the Registrar’s Office contacted law enforcement after another employee in the office recognized a registration form submitted in the name of the deceased father of a Rockingham County Judge. The Registrar’s Office discovered multiple instances of similarly falsified forms when it reviewed additional registrations. Some were in the names of deceased individuals while others bore incorrect middle names, birth dates, and social security numbers. The Registrar’s Office learned that the individuals named in these forms had not in fact submitted the new voter registrations. The assistant registrar’s personal knowledge of the names of some of the individuals named in the falsified documents facilitated the detection of the crime.
Spieles admitted that he prepared the false voter registration forms by obtaining the name, age, and address of individuals from “walk sheets” provided to him by the Virginia Democratic Party, fabricating a birth date based on the ages listed in the walk sheet, and fabricating the social security numbers. Spieles admitted that he created all 18 fraudulent forms himself and that no one else participated in the crime.
The investigation of the case was conducted by the Federal Bureau of Investigation and the Harrisonburg Police Department. The Rockingham County Commonwealth’s Attorney’s office also assisted in the investigation. Assistant United States Attorney Jeb Terrien prosecuted the case for the United States.
Former Correctional Officer at Southwest Virginia Regional Jail in Abingdon Pleads GuiltyRead the Press Release
Abingdon, VIRGINIA – Two men, one a correctional officer at the Southwest Virginia Regional Jail in Abingdon, who agreed to smuggle a variety of contraband items into the facility pled guilty today in the United States District Court for the Western District of Virginia in Abingdon to federal public corruption charges, Acting United States Attorney Rick A. Mountcastle announced.
Justin Andrew Brown, 23, Lebanon, Va., pled guilty today to one count of accepting a bribe as a public official, and one count of conspiring to accept a bribe as a public official. Robert Lewis Jones, 25, of Lebanon, Va., pled guilty to one count of conspiring to accept a bribe as a public official.
According to evidence presented at today’s guilty plea hearing by Assistant United States Attorney Zachary T. Lee, Brown was a correctional officer at Southwest Virginia Regional Jail in Abingdon. In the summer of 2015, an inmate approached Brown about smuggling contraband, specifically tobacco, controlled substances and nude pictures into the jail. Following numerous discussions with the inmate, Brown agreed to smuggle controlled substances, tobacco and nude pictures into Southwest Virginia Regional Jail in exchange for $10,000 in United States currency. Law enforcement agents became aware of Brown’s plan in March of 2016. With the assistance of a cooperating witness, law enforcement arranged for a meeting between Brown and the cooperating witness at which Brown believed he would be receiving $10,000 in United States currency and various contraband items that he was to smuggle into the Southwest Virginia Regional Jail. Brown offered Jones $2,000 to “watch his back” during the meeting.
The meeting between Brown, Jones, and the cooperating witness occurred on March 22, 2016, at a restaurant in Abingdon. At the meeting, Jones and Brown took possession of the contraband items and a quantity of United States currency and Brown agreed to smuggle the contraband items into the Southwest Virginia Regional Jail facility. Shortly thereafter, law enforcement arrested both Brown and Jones.
The investigation of the case was conducted by Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Abingdon Police Department, and the Washington County Sheriff’s Department. Assistant United States Attorney Zachary T. Lee prosecuted the case for the United States.
Winchester Man Sentenced on Child Pornography Production ChargesRead the Press Release
Harrisonburg, VIRGINIA – A Winchester man, who filmed himself sexually exploiting two minor children, was sentenced today in the United States District Court for the Western District of Virginia in Harrisonburg, Acting United States Attorney Rick A. Mountcastle announced.
LaMarcus Thomas, 33, of Winchester, Va., was sentenced today to 360 months in federal prison. Thomas previously pled guilty to two counts of production of child pornography.
According to evidence presented at previous hearings, in the fall of 2014, the Winchester Police Department began an investigation into a complaint that two children had been molested by Thomas. When the defendant was arrested on state sex crime allegations for acts against the two children, the Winchester Police Department recovered a cellphone that belonged to Thomas.
Examination of the cell phone revealed numerous images and movies of child pornography depicting two different minor boys. It appeared the two victims were likely sleeping during the production of the images and movies, which showed various images of the penis and hands of the defendant and the penis of one of the minor boys. Thomas admitted producing the child pornography and identified himself and the two minors depicted in the images in the videos. The investigation determined that Thomas spent significant time with the two minors depicted in the videos, including spending overnight visits with the victims.
The investigation of the case was conducted by the Federal Bureau of Investigation, the Virginia State Police and the Winchester Police Department. Virginia State Police conducted the initial forensic examination of the cellphone. Assistant United States Attorney Nancy S. Healey and Criminal Division Trial Attorney Leslie Williams Fisher of the Child Exploitation and Obscenity Section (CEOS) prosecuted the case for the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Virginia Man Sentenced to 360 Months for Production of Child PornographyRead the Press Release
A Virginia man was sentenced today to 360 months in prison and a lifetime of supervised release for production of child pornography, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney Rick A. Mountcastle of the Western District of Virginia.
LaMarcus Thomas, 33, of Winchester, Virginia, previously pleaded guilty to two counts of production of child pornography. Chief U.S. District Judge Michael F. Urbanski presided over the sentencing.
Through the course of an investigation by the Winchester Police Department on other charges, Thomas was discovered to have multiple images and videos of child pornography, involving two different minor victims, contained in his cellular phone. When interviewed by the FBI, Thomas admitted to producing the images and videos of child pornography.
This case was investigated by the FBI and the Winchester Police Department, and Virginia State Police aided with the forensic analysis of digital media.
The case was prosecuted by Assistant U.S. Attorney Nancy Healey of the Western District of Virginia and Trial Attorney Leslie Williams Fisher of the Child Exploitation and Obscenity Section (CEOS) of the Justice Department’s Criminal Division.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Five Sentenced This Week as Part of Operation Leaving Las VegasRead the Press Release
Abingdon, VIRGINIA – In late 2016, law enforcement agencies, led by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration, and assisted by agencies from across southwest Virginia, charged 32 individuals with conspiring to distribute methamphetamine and oxycodone.
The investigation, deemed Operation Leaving Las Vegas, accused 32 individuals of trafficking methamphetamine and oxycodone from Law Vegas into Southwest Virginia, Eastern Kentucky and elsewhere.
To date, 25 of the 32 charged have been convicted of federal drug conspiracy and money laundering charges. Nineteen of the defendants have been sentenced. The cases for the remaining defendants are working their way through the federal court system.
This week in the United States District Court for the Western District of Virginia in Abingdon, five defendants were sentenced for their roles in the conspiracy, Acting United States Attorney Rick A. Mountcastle announced.
Brandon Lee Stone, 33, was sentenced to 25 years in federal prison; Bradley Lee Chapman, 28, was sentenced to 135 months; Alex Michael Kayian, 23, was sentenced to 72 months; Kaitlynn Elizabeth Chapman was sentenced to 72 months, and Ralph Stewart Dingus, 27, was sentenced to 37 months.
Defendants previously sentenced for their roles in the conspiracy include John Dewayne Farmer, 240 months; Lola Virginia Farmer, 87 months; Shauna Nicole Chafin, 97 months; William Wesley Fleenor, 79 months; Jeffrey Nathaniel Gobble, 46 months, Preston Kyle Lawson, 46 months; Gary Ginn, 151 months; Daniel Corey Cantrell, 37 months; Tanner Morris Curd, 84 months; Amy Lorene Moser, 100 months; Steven Salyer, 87 months; Brandon Cody Trivett, 30 months; Lamar Skipper, four years’ probation; and Gary Brandon Childress, three years’ probation.
The investigation of the case was conducted by the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Internal Revenue Service Criminal Investigations, United States Marshals Service, Virginia State Police, Washington County, Virginia Sheriff’s Office, Abingdon Police Department, Marion Police Department, and Smyth County, Virginia Sheriff’s Office. Assistant United States Attorney Zachary T. Lee is prosecuting the case for the United States.
Radford Nurse Who Tampered with Liquid Morphine Intended for Nursing Home Patients Sentenced in Federal CourtRead the Press Release
Abingdon, VIRGINIA – A former nurse, who previously pled guilty to tampering with a consumer product, was sentenced today in the United States District Court for the Western District of Virginia in Abingdon, Acting United States Attorney Rick A. Mountcastle announced.
Christina Lovern Calloway, 40, of Radford, Virginia, was sentenced today to imprisonment for a term of 48 months. Calloway previously pled guilty to one count of tampering with a consumer product.
Calloway, while working as a nurse in a nursing home, diverted liquid morphine intended for patients to her own use. The defendant, on more than one occasion, took some of the liquid morphine from a bottle and used it herself. She then used tap water to refill the bottle in an attempt to hide her crime. The diluted morphine was then administered to patients.
Assistant United States Attorney Randy Ramseyer prosecuted the case on behalf of the United States. The case was investigated by the United States Food and Drug Administration – Office of Criminal Investigations and the Virginia State Police.
Fifth Defendant Sentenced for Violent Crime Spree Last SummerRead the Press Release
Charlottesville, VIRGINIA – A fifth individual involved in a series of armed robberies last summer in Albemarle and Greene counties was sentenced today in the United States District Court for the Western District of Virginia in Charlottesville, Acting United States Attorney Rick A. Mountcastle announced.
Demetrius Steppe, 20, of Ruckersville, Va., was sentenced today to 180 months in federal prison. Steppe previously pled guilty to two counts of using and carrying a firearm during and in relation to a crime of violence.
Steppe was sentenced for his involvement in three armed robberies. The first of these robberies occurred on June 8, 2016 when Steppe, Terence Tyree and Kentavia Jones robbed the Papa John’s Pizza establishment in Greene County. The second robbery occurred on June 12, 2016 when Steppe and Isaiah Wilson robbed the 7-11 convenience store in Albemarle County. In this robbery, used an assault rifle to intimidate and threaten the store clerk. The third robbery occurred on June 17, 2016 when and Tyree returned to the Papa John’s Pizza establishment in Greene County for a second time. During each of these robberies, the defendants – while dressed in all black and wearing masks and gloves – brandished firearms at the clerks and demanded money and cell phones.
In total, these four defendants, as well as Jaquarius Johnson and Chelsea Scott, were responsible for five armed robberies of commercial establishments throughout June and July 2016. The targets were comprised of convenience stores and pizza restaurants in Albemarle and Greene Counties. addition, defendants Terence Tyree, Jaquarius Johnson and Kentavia Jones were responsible for a violent home invasion in Albemarle County occurring on July 18, 2016. separate hearings earlier this week, Terence Tyree, Kentavia Jones, Jaquarius Johnson and Isaiah Wilson were sentenced to federal prison time for their respective roles in the above robberies and the home invasion. For their respective conduct, Tyree, was sentenced to 360 months, Jones was sentenced to 225 months, Johnson was sentenced to 126 months and Wilson was sentenced to 68 months.
The investigation of the case was conducted by the Federal Bureau of Investigation, the Albemarle County Police Department and the Greene County Sheriff’s Office, with assistance from the Albemarle County and Greene County Commonwealth Attorneys Offices. Assistant United States Attorneys Ronald M. Huber and Christopher Kavanaugh prosecuted the case for the United States.
Roanoke Man Sentenced on Heroin ChargeRead the Press Release
Roanoke, VIRGINIA – A Roanoke man who conspired with others to distribute heroin and other drugs was sentenced today in the United States District Court for the Western District of Virginia in Roanoke, Acting United States Attorney Rick A. Mountcastle announced.
Westley Richardson, a.k.a. “Murda” a.k.a. “Murder,” 36, of Roanoke, was sentenced today to 120 months in prison, to be followed by a 5-year term of supervised release. Richardson previously pleaded guilty to one count of conspiring to possess with the intent to distribute and to distribute heroin and methamphetamine.
According to evidence presented by Special Assistant United States Attorney Kari Munro, after Richardson was recorded on video selling heroin and other substances to various individuals, police arrested him during a traffic stop on May 12, 2016 in Roanoke in possession of one or more of these substances. Richardson later acknowledged that he had acquired large amounts of heroin and methamphetamine for distribution in and around the Roanoke Valley over a period of more than a year, in some instances accepting firearms as payment for the drugs.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Agency; the Virginia State Police; the Roanoke County Police Department; the Roanoke City Police Department; the Radford City Police Department; and the regional HIDTA task force. Special Assistant United States Attorney Kari Munro prosecuted the case for the United States.
Four Men Sentenced for Violent Crime Spree Last SummerRead the Press Release
Charlottesville, VIRGINIA – Four of the six individuals responsible for a crime spree in Albemarle and Greene counties last summer that included a series of armed robberies, kidnappings, an armed home invasion, and a carjacking were sentenced today in federal court in Charlottesville, Acting United States Attorney Rick A. Mountcastle announced.
In separate hearings today in the United States District Court for the Western District of Virginia in Charlottesville, Terence Tyree, Kentavia Jones, Jaquarius Johnson and Isaiah Wilson were sentenced to federal prison time for their various roles in the conspiracy.
Tyree, 19, of Ruckersville, was sentenced to 360 months in federal prison. Jones, 19, of Earlysville, was sentenced to 225 months in federal prison. Johnson, 19, of Charlottesville, was sentenced to 126 months in federal prison. Tyree, Jones and Johnson were also ordered to pay $4,079 restitution joint and severally to the victims of these crimes. Wilson, 24, of Charlottesville, was sentenced today to 68 months in federal prison. Demetrius Steppe will be sentenced on Friday, July 28, 2017.
“This prosecution is an example of the application of Attorney General Sessions’ March 8, 2017 Memorandum announcing the Department of Justice’s Commitment to Targeting Violent Crime,” Acting United States Attorney Rick A. Mountcastle said today. “The Albemarle County Police Department, the Greene County Sheriff’s Office, and the Federal Bureau of Investigation worked together to identify and quickly apprehend these violent criminals before they could do more violence to our citizens. The Albemarle and Greene County offices of the Commonwealth’s Attorney worked together with our office to decide to bring this case in Federal court and our Assistant United States Attorneys ensured that these defendants received appropriate sentences under federal law so that they no longer present a danger to our citizens. The Department’s violent crime strategy targets violent criminals such as these in a common-sense way to make our communities safer for law-abiding citizens.”
“The facts of this case are egregious. These violent criminals – who terrorized our central Virginia communities with handguns, sawed-off shotguns, and even an assault rifle– thankfully, no longer pose a threat. The FBI is committed to the Department of Justice’s renewed emphasis on removing violent criminals like these from our streets,” said Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Division. “I want to thank our colleagues at the United States Attorney’s Office for the Western District of Virginia for their expert prosecution of this case and I want to thank our outstanding partners at the Albemarle County Police Department and the Greene County Sheriff’s Office for their collaboration. I’ve said this in similar FBI cases over the past year; Virginia is not a safe place for criminals to operate and victimize our citizens. We are mobilized against you and we will put you in prison for a long, long time.”
These four men were responsible for the armed robbery of five commercial establishments throughout June and July 2016. The targets were comprised of convenience stores and pizza restaurants in Albemarle and Greene Counties. In each armed robbery, the defendants – wearing masks, gloves, and dark clothing – entered local businesses and threatened the employees at gunpoint. They stole cash and cell phones from the employees, and fled the store.
This violent crime spree culminated with a home invasion, carjacking, kidnapping, and armed robbery, all of which took place on the evening of July 18, 2016. That night, defendants Tyree, Jones, and Johnson broke into an Albemarle County residence by throwing a propane tank through a sliding glass door. The homeowner was inside, alone, and heard the loud explosion. When he went downstairs, he saw three men – later identified as Tyree, Jones, and Johnson – in his living room, armed with a firearm. They forced the victim against the wall and struck him, and then ransacked the house. Afterwards, the defendants commanded the victim to enter his own vehicle in his garage, and they then drove him away from home -- at gunpoint -- to a nearby ATM located at the Wells Fargo bank at the intersection of Route 29 and Airport Road. At that location, the defendants spotted another victim, who was a passerby walking through the parking lot, having just come from the nearby airport with his luggage still in hand. The defendants abducted the man, forcing him into the car at gunpoint. When the first victim was unsuccessful at getting money from the ATM machine, the defendants again forced him back into the car. With the two kidnapping victims in the car, the defendants drove to a nearby 7-11 convenience store and robbed the employees at gunpoint. Soon thereafter, in a nearby neighborhood, the defendants stopped the car and told both victims to get out and both complied. The defendants later abandoned the vehicle, which was later recovered by law enforcement.
The investigation of the case was conducted by the Federal Bureau of Investigation, the Albemarle County Police Department and the Greene County Sheriff’s Office, with assistance from the Albemarle County and Greene County Commonwealth Attorneys Offices. Assistant United States Attorneys Ronald M. Huber and Christopher Kavanaugh prosecuted the case for the United States.
Roanoke Man Pleads Guilty to Theft of Social Security Administration FundsRead the Press Release
Roanoke, VIRGINIA – A Roanoke man pled guilty today in federal court in Roanoke to stealing over $100,000 of Social Security Administration funds intended for his deceased wife after he failed to report her death to that agency, Acting United States Attorney Rick A. Mountcastle announced.
Walter J. Doran, 76, of Roanoke, waived his right to be indicted and pled guilty today to a one count Information charging with theft of government money, willfully and knowingly steal and convert for his own use money of the Social Security Administration.
According to evidence presented at today’s guilty plea hearing by Assistant United States Attorney Charlene R. Day, Doran failed to report his wife’s death to the Social Security Administration in 2009. The defendant continued to receive his late wife’s Social Security Retirement benefits from 2009 through April 2016 and use the funds for his own use. In all, Doran received $108,787 in Social Security Administration benefits to which he was not entitled.
The investigation of the case was conducted by the Social Security Administration. Assistant United States Attorney Charlene R. Day prosecuted the case for the United States.
Carroll County Business Owner Pleads Guilty to Federal ChargesRead the Press Release
Abingdon, VIRGINIA – A Carroll County business owner, who paid his employees in cash to avoid paying taxes to the Internal Revenue Service and later lied in a bankruptcy proceeding, pled guilty today in federal court in Abingdon to federal conspiracy, tax and bankruptcy charges, Acting United States Attorney Rick A. Mountcastle announced.
Jones Keith Andrews, 62, of Galax, Va., pled guilty today, without the benefit of a plea agreement, in the United States District Court for the Western District of Virginia in Abingdon to one count of conspiracy to defraud the United States by impeding, impairing, obstructing and defeating the lawful function of the Internal Revenue Service, 17 counts of failure to pay or collect tax, and one count of bankruptcy fraud. Sentencing has been scheduled for December 17, 2017, at 2:30 p.m. At sentencing, Andrews faces a statutory maximum sentence of 95 years in prison and a fine of $4.25 million.
Between 2009 and March 2015, Andrews, and others, executed a scheme in which a portion of the wages paid to employees of Andrews Farming was paid via paycheck and the remainder was paid in cash. For each quarter from 2009 through 2014, the conspirators caused IRS Forms 941 to be sent to the United States Government that falsely underreported the wages paid to employees of Andrews Farming. The Forms 941 only listed the wages paid to employees via paycheck and did not include the amounts paid via cash.
In addition, for each year from 2009 through 2014, the conspirators caused Forms W2 to be sent to the United States Government that falsely underreported the wages paid to employees of Andrews Farming. The Forms W2 listed only wages paid via paycheck and not the wages paid in cash.
The cash paid to employees was obtained by cashing of personal and company checks. Over $1 million in cash was obtained by the cashing of those checks.
In addition, Andrews knowingly made a false statement, under oath, during a bankruptcy hearing in May 2016. Andrews claimed at a May 5, 2016, bankruptcy hearing that Andrews Farming had lost approximately $1.3 million due to “embezzlement of employee, Robert Donald Morgan, III,” when in fact Andrews knew that was not true and correct. Andrews knew that a significant portion of the amounts he attributed to embezzlement by Morgan were, in fact, used to pay cash wages.
Robert Donald “Donnie” Morgan previously pled guilty for his role in the criminal activity and was sentenced to imprisonment for a term of six months on March 29, 2016.
The investigation of the case was conducted by the Internal Revenue Service – Criminal Investigation and the United States Secret Service. The Blacksburg, Virginia, Police Department provided valuable assistance in forensically analyzing the computers seized in the case. Assistant United States Attorneys Zachary T. Lee, Jennifer Bockhorst, and Randy Ramseyer prosecuted the case for the United States.
Former Postal Employee Pleads Guilty to Stealing Mail MatterRead the Press Release
Roanoke, VIRGINIA – A former employee of the United States Postal Service pled guilty yesterday in federal court here to stealing items from the mail, including cash, Acting United States Attorney Rick A. Mountcastle announced.
Michelle Spinner, 56, of Big Island, Virginia, waived her right to be indicted and pled guilty yesterday to a one count Information charging her with theft of mail matter by an officer or employee of the United States Postal Service.
According to evidence presented at yesterday’s hearing by Assistant United States Attorney Charlene R. Day, Spinner worked as a mail-processing clerk at the Roanoke Processing and Distribution Center. She began working for the USPS in 2005.
In January 2015, The United States Postal Service- Office of the Inspector General began an investigation into the handling of mail at the processing and distribution center after receiving complaints from customers about mail being “rifled.”
During the course of the investigation, video cameras captured Spinner working on a flat sorter on several occasions. While working on the flat sorter, Spinner could be seen pausing on certain pieces of mail and spending an extended period with her hands deep in a container. On occasion, video captured Spinner opening mail, removing cash and placing the cash in her pocket.
In all, Spinner stole a total of $2,603 in cash from mail at the processing center.
The investigation of the case was conducted by the United States Postal Service-Office of the Inspector General. Assistant United States Attorney Charlene R. Day prosecuted the case for the United States.
Danville Doctor Pleads Guilty to Healthcare Fraud, Tax Evasion ChargesRead the Press Release
Danville, VIRGINIA – A Danville doctor, who billed various insurers for services he never administered to patients, pled guilty today in the United States District Court for the Western District of Virginia in Danville to healthcare fraud and tax evasion charges, Acting United States Attorney Rick A. Mountcastle announced.
Edwin L. Fuentes, 55, of Danville, Va., waived his right to be indicted and pled guilty today to an Information charging him with one count of healthcare fraud and one count of willfully evading taxes.
According to evidence presented at today’s guilty plea hearing by Assistant United States Attorney Heather L. Carlton, had this case gone to trial the United States would have proven that Fuentes owned and operated a general medical practice in Danville called Morning Star Family Medicine.
From at least January 2012 through December 2014, Morning Star billed covered patient visits to various insurers, such as Optima, Virginia Premier, Aetna, Anthem, Medicare and Medicaid. Fuentes directed and ordered all billing decisions at Morning Star and was the only one authorized to complete the superbill, which is the form that determines which services to invoice to a health care benefit program for a patient’s medical visits.
Fuentes directed and ordered Morning Star employees, from at least January 2012 through December 2014, to bill various health care benefit programs for services he did not provide through a scheme to defraud those programs. Specifically, Fuentes would bill health care benefit programs for the patient visit under an “evaluation and management” code. In addition, Fuentes would bill the health care benefit program for “preventative counseling” sessions for the exact same patients visits, which would result, effectively, in double billing. After auditors discovered this fraud in 2012, 2013 and again in 2014, Fuentes attempted to conceal the fraud by making notes in patient records that some sort of counseling had been administered to patients. However, patients never received counseling.
During this time period, various health care benefit programs overpaid Fuentes, through Morning Star, $998,228. In addition, Fuentes diverted some of these funds to a Wells Fargo bank account. He used these funds for day trading, the profits of which he concealed from the Internal Revenue Service by not reporting it as income for the tax years of 2011 through 2014.
The investigation of the case was conducted by the Virginia Office of the Attorney General- Medicaid Fraud Control Unit, U.S. Department of Health and Human Services Office of the Inspector General and the Internal Revenue Service - Criminal Investigations. The Danville Police Department and the Virginia Department of Motor Vehicles- Law Enforcement Division provided assistance to the investigation. Assistant United States Attorney Heather L. Carlton and Special Assistant United States Attorney Kari Munro prosecuted the case for the United States.
Coal Company Pleads Guilty to Providing Advance Notice of MSHA Inspections Pays over $260,000 in Fines and PenaltiesRead the Press Release
Abingdon, VIRGINIA – A Kingsport, Tennessee, coal company pled guilty this week in the United States District Court in Abingdon to violating the Federal Mine Safety and Health Act by providing advance notice of safety inspections, Acting United States Attorney Rick A. Mountcastle announced.
Mill Branch Coal, LLC, pled guilty and was sentenced earlier this week to one count of providing advance notice of safety inspections.
Pursuant to the plea agreement, Mill Branch Coal, LLC, paid $260,538 to the United States Department of Labor for criminal fines and obligations, and resolution of civil citations, orders, and assessments. In addition, the company was placed on probation for a period of two years.
From January to June 2015, Mill Branch employees at the Dorchester mine in Wise County, Virginia, used an underground texting system to give employees advance notice that United States Mine Safety and Health Administration inspectors were on premises. The employees also gave advance notice when Mill Branch’s internal auditors and inspectors from the Virginia Department of Mines, Minerals and Energy were on premises.
When evidence of the activity was uncovered in June 2015, both the company and MSHA conducted investigations of the illegal activity by Mill Branch’s employees. The company terminated employees and took remedial action to prevent the activity from occurring in the future.
“MSHA believes that mine inspections should be conducted when mines are operating under actual working conditions. The Agency appreciates Mill Branch’s swift, remedial action to address this problem,” notes Patricia W. Silvey, deputy assistant secretary for MSHA.
The investigation of the case was conducted by the Norton Office of the Mine Safety and Health Administration. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
Three Sentenced for Roles in Healthcare ConspiracyRead the Press Release
Abingdon, VIRGINIA – Three Bristol, Virginia residents, who were previously convicted of healthcare fraud, were sentenced today in Federal Court, Acting United States Attorney Rick A. Mountcastle, Virginia Attorney General Mark R. Herring and Nick DiGiulio, Special Agent in Charge, Philadelphia Regional Office for U.S. Health and Human Services - Office of Inspector General announced.
Deborah Branch, 65, was sentenced today to 72 months in federal prison. In a pair of separate hearings today, Bryan Harr, 41, was sentenced to 48 months in federal prison and Melissa Harr, 49, was sentenced to 48 months in federal prison. The three previously pled guilty to federal healthcare conspiracy charges. Branch additionally pled guilty to wire fraud.
“This case shows that fraud committed against our federal and state health care benefit programs is more than just simple theft of government money, there is a sinister side to the greed that fuels the criminal acts of defendants like these,” Acting United States Attorney Mountcastle said today. “This type of greed brings physical and emotional devastation upon the innocent, vulnerable victims for whom essential services are denied, simply to satiate the greed of these defendants. In this case, children were forced to live in filth in a room without electricity. The United States Attorney’s Office, and our partners at the Virginia Attorney General’s Office, Health and Human Services and others, will continue to aggressively pursue fraudsters, like Branch and the Harrs, whose criminal actions bring harm to vulnerable victims.”
“Anyone who diverts public funds for their private benefit is stealing from all of us and undermining an important system that provides thousands of Virginians with needed medical services,” said Attorney General Mark Herring. “A situation where people steal that money at the expense of their own disabled child is even more horrifying and unacceptable, and I’m glad to see these criminals brought to justice today. My award-winning Medicaid Fraud Unit and I will be relentless in holding accountable those who try to take advantage of our health care system.”
“It is shocking to imagine parents who would for many years neglect their disabled child and allow him to suffer horribly while they worked to steal taxpayer money meant to pay for the child’s much needed care,” said Special Agent in Charge Nick DiGiulio of the United States Department of Health and Human Services, Office of Inspector General. “We are satisfied that justice was served today, and we will continue to work with our law enforcement partners to jail heartless criminals who prey on beneficiaries and our health care system.”
According to evidence presented at previous hearings, Bryan Harr Sr. and his wife, Melissa Harr, hired Branch to work with one of their children, who suffers from intellectual and physical disabilities and who qualifies for services paid for by Virginia Medicaid, including personal assistance, respite and residential support services. These services are available to qualified individuals pursuant to Virginia Medicaid’s Intellectual Disability (ID) waiver program. The ID waiver program is designed to provide critical services that enable a recipient to remain at home instead of being placed in an institution. Recipients or their guardians are permitted to hire workers of their own choosing to provide these services, which are paid for by Virginia Medicaid. Branch was paid through two different Virginia Medicaid contractors: Public Partnerships, LLC and ResCare (formerly known as Creative Family Solutions).
From January 2010 until September 2015, Branch, with the knowledge of Melissa Harr and Bryan Harr Sr., submitted time sheets claiming Branch was providing services for Harr’s disabled son when she was not. In exchange for assisting Branch in being paid for work she did not do, Branch paid the Harrs approximately $200 every two weeks. Virginia Medicaid’s Department of Medical Assistance Services (DMAS) paid out $350,641.02 to the contractors based on these time sheets, of which $207,854.43 was paid to Branch. More importantly, the Harr’s disabled son did not receive the services he legitimately needed pursuant to the ID waiver program.
The investigation of the case was conducted by the Medicaid Fraud Control Unit of the Virginia Attorney General’s Office, the U.S. Department of Health and Human Services Office of Inspector General, and the Bristol Virginia Police Department. Special Assistant United States Attorney Janine M. Myatt, a Virginia Assistant Attorney General, prosecuted the case for the United States.
Elkton Man Sentenced on Methamphetamine, Gun ChargesRead the Press Release
Harrisonburg, VIRGINIA – An Elkton man, who was the driver of a car pulled over in Shenandoah County and found to be illegally in possession of a firearm and illegal drugs, was sentenced today in the United States District Court for the Western District of Virginia in Harrisonburg, Acting United States Attorney Rick A. Mountcastle announced.
Blake Morgan Stroop, 22, of Elkton, was sentenced today to 130 months’ imprisonment, with a five-year period of supervised release to follow. Stroop previously pled guilty to one count of conspiring to distribute more than 50 grams of methamphetamine and one count of possession of a firearm in furtherance of a drug trafficking crime.
According to evidence presented at previous hearings by Assistant United States Attorney Jeb Terrien, on October 12, 2015, officers in Shenandoah County stopped a rental vehicle drive by Stroop, in which Ernest Wayne Good was the passenger. After smelling marijuana and hearing Good admit to smoking “a little while ago,” officers searched Good and Stroop and found various items, including methamphetamine and firearms, among other items. Good was previously convicted and sentenced to 68 months in federal prison for his crimes.
Later, on November 13, 2005, again in Elkton, Stroop and Good were again apprehended by law enforcement. On this occasion, Stroop was found in possession of a large amount of methamphetamine, approximately $12,070, and a loaded .380 caliber pistol with an obliterated serial number. Good was also found in possession of methamphetamine.
The investigation of the case was conducted by the Drug Enforcement Administration, the RUSH Drug Task Force, Shenandoah County Sheriff’s Office, Elkton Police Department, and Strasburg Police Department. Assistant United States Attorney Jeb Terrien and Special Assistant United States Attorney Thomas Duncombe prosecuted the case for the United States.
Final Member of Credit Card Fraud Conspiracy Pleads GuiltyRead the Press Release
Roanoke, VIRGINIA – The sixth member of a conspiracy that targeted rural communities in the southeast to commit credit card fraud and aggravated identity theft pled guilty yesterday in the United States District Court for the Western District of Virginia in Roanoke, Acting United States Attorney Rick A. Mountcastle announced.
Quentin Bruce pled guilty yesterday to one count of conspiracy to commit access device fraud and one count of aggravated identity theft. Previously, five other co-conspirators, Keyshawn Berchel Hunter, 27, of Florence, S.C., Daquan Damese James, 24, of Darlington, S.C., Roland Marcell Bruce, 23, of Darlington, S.C. and Markese Davon Robinson, 21, of Darlington, S.C., each pled guilty to one count of conspiracy to commit access device fraud and one count of aggravated identity theft. A fifth defendant, Markese Tyshawn James, 22, of Darlington, S.C., pled guilty to one count of conspiracy to commit access device fraud.
According to evidence presented during previous hearings by Assistant United States Attorney Ashley B. Neese, authorities in Pearisburg, Virginia responded to the Pearisburg Wal-Mart for a report of several males attempting to use multiple debit cards that make purchases that were declined. A loss prevention employee noted that he observed the same males in the store a week earlier, attempting the same scheme and gave authorities a description of the subjects vehicle.
Authorities located a vehicle matching the description given by the Wal-Mart employee parked nearby and approached it, noticing the strong smell of marijuana as they did. Based on the smell of marijuana, police searched the vehicle and recovered a bag of green leafy material near the driver’s seat, 16 Visa debit cards. Additional search of the occupants of the vehicle recovered 40 Visa gift cards in the van’s center console and 52 Visa gift cards, one credit card skimmer and one HP laptop computer elsewhere in the van. Forensic examination by the United States Secret Service performed later revealed that 89 of those cards were re-encoded with stolen credit card numbers.
Additionally, one of the conspirators admitted the group targeted Wal-Mart stores in the southeast because the store wanted to keep the lines moving, which worked to their advantage.
The investigation of the case was conducted by the United States Secret Service, the Pearisburg Police Department, and the Giles County Sheriff’s Office. The Office of the Commonwealth Attorney for Giles County also assisted with the overall prosecution. Assistant United States Attorney Ashley B. Neese prosecuted the case for the United States.
Christiansburg Pair Sentenced on Methamphetamine ChargesRead the Press Release
Roanoke, VIRGINIA – A pair of Christiansburg residents were sentenced today in the United States District Court for the Western District of Virginia in Roanoke on Federal drug conspiracy charges, Acting United States Attorney Rick A. Mountcastle announced.
Timothy Wayne Radford, 49 and Melissa Dawn Lytton, 45, each previously pled guilty to conspiracy charges. Radford pled guilty to one count of conspiracy to possess with the intent to distribute and to distribute 50 grams or more of methamphetamine. Lytton pled guilty to one count of conspiracy to possess with the intent to distribute and to distribute methamphetamine. Today in District Court, Radford was sentenced to 135 months in federal prison. In a separate hearing today, Lytton was sentenced to 127 months in federal prison.
According to evidence presented at previous hearings by Assistant United States Attorney Ashley B. Neese, Radford and Lytton admitted to being involved in a conspiracy to distribute methamphetamine since at least late 2015 and continuing through March 2016, which was accountable for distributing between 1.5 and 5 kilograms of methamphetamine.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Virginia State Police and the Floyd County Sheriff’s Office. Assistant United States Attorney Ashley B. Neese prosecuted the case for the United States.
Tazewell Woman Pleads Guilty to Federal Firearms ChargesRead the Press Release
Abingdon, VIRGINIA – A Tazewell woman, who illegally purchased firearms for her son and lied about the purchases, pled guilty yesterday in the United States District Court for the Western District of Virginia in Abingdon to a pair of federal charges, Acting United States Rick A. Mountcastle announced.
Glenna Elswick, 50, pled guilty yesterday to one count of making a false statement in connection with the acquisition of a firearm from a licensed dealer and one count of providing a firearm to a prohibited person.
According to evidence presented at yesterday’s guilty plea hearing by Assistant United States Attorney Zachary T. Lee, between October 2016 and February 2017, Elswick purchased at least seven firearms for her son, Matthew Elswick, who is prohibited from owning firearms due to his status as a previously convicted felon. In the process of purchasing the firearms, Elswick made false statements on ATF forms stating she was buying the firearms for her own use.
The investigation of the case was conducted by Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Zachary T. Lee prosecuted the case for the United States.
Five Members of Methamphetamine Conspiracy Plead Guilty in Federal CourtRead the Press Release
Roanoke, VIRGINIA –Five members of a Roanoke-based drug conspiracy that distributed methamphetamine in the city and to places as far west as Lynchburg and Amherst, pled guilty yesterday in the United States District Court for the Western District of Virginia in Roanoke, Acting United States Attorney Rick A. Mountcastle announced.
Yesterday in District Court, Lewis Cheresnowsky Jr., 35, of Roanoke, Brian Edward Roden, 37, of Roanoke, Joy Lynne Mason, 35, of Evington, Va., and Adam Royal McElvy, 34, of Roanoke, each pled guilty to one count of conspiring to possess with the intent to distribute and to distribute 50 grams or more of methamphetamine. Brandi Ann Doss, 35, of Roanoke, pled guilty yesterday to one count of conspiring to possess with the intent to distribute and to distribute a detectable amount of methamphetamine and one count of distributing methamphetamine.
According to evidence presented at yesterday’s guilty plea hearing by Assistant United States Attorney Ashley B. Neese, the conspiracy operated in and around the City of Roanoke from spring 2015 until late 2016. While a majority of the activity involved in the conspiracy was focused in the Roanoke-area, members of the conspiracy did distribute methamphetamine within the Lynchburg and Amherst regions of Virginia during part of the conspiracy.
The investigation of the case was conducted by the Drug Enforcement Administration, the Roanoke City Police, the Virginia State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Roanoke HIDTA. Assistant United States Attorney Ashley B. Neese prosecuted the case for the United States.
Virginia Tax Return Preparer Pleads Guilty to Filing False Tax Returns for ClientsRead the Press Release
A Danville, Virginia man pleaded guilty today to aiding in the preparation of a false tax return, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Rick A. Mountcastle for the Western District of Virginia.
According to documents filed with the court, Timothy Harris, 49, owned and operated TNA Tax Services and TNT Tax Services, which were located in Danville and Rocky Mount. Harris admitted that he used these businesses to prepare false tax returns for clients that claimed bogus business losses in order to seek refunds to which his clients were not entitled. After the Internal Revenue Service (IRS) revoked Harris’s Electronic Filing Identification Number (EFIN) in December 2012, he used another person’s EFIN to continue filing tax returns. Harris admitted that his fraudulent conduct caused a tax loss of more than $250,000.
Sentencing is scheduled for Oct. 24. Harris faces a statutory maximum sentence of three years in prison, a term of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Mountcastle commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Michael C. Boteler and William M. Montague of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Virginia Tax Return Preparer Pleads Guilty to Filing False Tax Returns for ClientsRead the Press Release
ROANOKE-A Danville, Virginia man pleaded guilty today to aiding in the preparation of a false tax return, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Rick A. Mountcastle for the Western District of Virginia.
According to documents filed with the court, Timothy Harris, 49, owned and operated TNA Tax Services and TNT Tax Services, which were located in Danville and Rocky Mount. Harris admitted that he used these businesses to prepare false tax returns for clients that claimed bogus business losses in order to seek refunds to which his clients were not entitled. After the Internal Revenue Service (IRS) revoked Harris’s Electronic Filing Identification Number (EFIN) in December 2012, he used another person’s EFIN to continue filing tax returns. Harris admitted that his fraudulent conduct caused a tax loss of more than $250,000.
Sentencing is scheduled for Oct. 24. Harris faces a statutory maximum sentence of three years in prison, a term of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Mountcastle commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Michael C. Boteler and William M. Montague of the Tax Division, who prosecuted the case.
Inmate at USP Lee Sentenced for Assaulting Corrections OfficerRead the Press Release
Abingdon, VIRGINIA – A federal inmate at United States Penitentiary at Lee County faces additional federal prison time after being sentenced this afternoon for resisting and assaulting a corrections officer, Acting United States Attorney Rick A. Mountcastle announced.
Darren Wall, 24, was sentenced this afternoon to imprisonment for a term of 60 months. He also was ordered to pay 24,714.32 in restitution. Wall previously pled guilty to one count of forcibly assaulting and resisting an officer and employee of the United States while that officer was engaged in the performance of official duties and during the commission of such offense did inflict bodily injury.
On May 9, 2016, Wall, while an inmate at USP Lee, resisted and assaulted a corrections officer while the officer performed his official duties. That assault caused bodily injury to the officer. Wall was also found in possession of a shank, an improvised knifelike weapon at the time of the incident.
The investigation of the case was conducted by the Bristol, Virginia, office of the Federal Bureau of Investigation. Assistant United States Attorney AUSA Randy Ramseyer is prosecuting the case for the United States.
Cross Junction Man Sentenced for Misbranding FlubromazolamRead the Press Release
Harrisonburg, VIRGINIA – A Virginia man who purchased and later distributed a misbranded drug that was intentionally masked to look like candy was sentenced yesterday in the United States District Court for the Western District of Virginia in Harrisonburg, Acting United States Attorney Rick A. Mountcastle announced.
Christopher Michael Sweeney II, 21, of Cross Junction, Va., was sentenced yesterday to four years in federal prison to be followed by three years of supervised release. Sweeney pled guilty on February 3, 2017, to one count of conspiracy to ship and receive a misbranded drug in interstate commerce with the intent to defraud and mislead.
According to evidence presented at the earlier guilty plea hearing and at yesterday’s sentencing, between June 2015 and September 2015, Sweeney bought Smarties candy laced with flubromazolam on the “dark web” and resold it, at substantial profit. Flubromazolam is a designer synthetic drug not approved by the United States Food and Drug Administration for human consumption because it is toxic and can cause serious bodily injury or even death when ingested. However, at the time Sweeney illegally trafficked in it, flubromazolam was not listed as a scheduled drug under either federal or state law. The Commonwealth of Virginia has since listed it as a Schedule I drug.
Sweeney misleadingly told his customers the substance was “Xanax” or “like Xanax,” even though he knew some of his purchasers were blacking out and having car accidents after taking it. On September 21, 2015, distributed Smarties laced with flubromazolam to a female victim, who formerly resided in Winchester, Virginia. That flubromazolam contributed to the female victim’s overdose and death.
“It is unfortunate that we could only prosecute this serious crime with tragic consequences under the FDA’s misbranding statute,” said Acting United States Attorney Mountcastle. “Sweeney distributed this dangerous drug for profit by disguising it as candy and falsely claiming that it was Xanax, ruthlessly ignoring the substantial risk of death posed by this drug. My heart goes out to parents of the young victim and I deeply regret that the unscheduled nature of this drug precluded a prosecution for more serious crimes. I commend AUSA Erin Kulpa, the Northwest Virginia Regional Drug and Gang Task Force, the Virginia State Police, and the Drug Enforcement Administration for bringing Sweeney to justice.”
“This is a great example of the challenge that law enforcement faces in a society where there are constantly evolving controlled substance analogues that are being produced abroad and ordered by utilizing the dark web. We are pleased to have a successful prosecution and even more so that flubromazolam is now recognized as a Schedule I controlled substance in the Commonwealth of Virginia,” said Supervisory Special Agent Josiah C. Schiavone, Coordinator of the Northwest Virginia Regional Drug and Gang Task Force for the Virginia State Police. “The successful prosecution was the result of excellent collaboration between the United States Attorney’s Office of the Western District, the Drug Enforcement Administration and the Northwest Virginia Regional Drug and Gang Task Force.”
“When you buy drugs from an unscrupulous distributor, who’s only concern is their own profit, you take an unnecessary risk with your own life which may end in tragic consequences. The complexity of the laws regarding synthetic drugs and the use of the dark web made this a difficult case to prosecute,” said DEA Washington Division Special Agent in Charge Karl C. Colder. “We are pleased to be part of the successful prosecution team in this investigation.”
The investigation of the case was conducted by Northwest Virginia Regional Drug and Gang Task Force, the Virginia State Police and the Drug Enforcement Administration. Assistant United States Attorney Erin M. Kulpa prosecuted the case for the United States.
Registered Nurse Pleads Guilty to Tampering with FentanylRead the Press Release
Abingdon, VIRGINIA – A registered nurse who worked at a medical facility in Roanoke pled guilty yesterday to a federal charge of tampering with a consumer product, namely fentanyl, Acting United States Attorney Rick A. Mountcastle announced.
Kevin Carter, 28, of Roanoke, Va., waived his right to be indicted and pled guilty yesterday to a one count information charging him with tampering with a consumer product, fentanyl, that affects interstate or foreign commerce, with reckless disregard for the risk that another person be placed in danger of death or bodily injury. At sentencing, scheduled for September 20, 2017, at 11:00 a.m., Carter faces a maximum statutory penalty of up to 10 years in prison and/or a fine of up to $250,000.
“In the face of an increasing number of overdoses involving fentanyl across the country and the Commonwealth, prosecuting individuals who divert fentanyl and other opioids is a top priority of the United States Attorney’s Office,” Acting United States Attorney Mountcastle said today. “We are committed to prosecuting, to the maximum extent under the law, individuals who unlawfully divert, import, or distribute fentanyl or other opioids.”
“FDA oversees the U.S. supply of medicines to ensure that they are safe and effective, and those who knowingly tamper with medicines for patients put their health at risk,” said Mark S. McCormack, Special Agent in Charge, FDA Office of Criminal Investigations’ Metro Washington Field Office. “Our office will continue to pursue and bring to justice those who violate laws designed to protect the public health.”
According to information presented at yesterday’s guilty plea hearing by Assistant United States Attorney Randy Ramseyer. On or about December 15, 2016, Carter tampered with liquid syringes of fentanyl by removing a syringe of liquid fentanyl from the anesthesia cart in an operating room for his own use and replacing the stolen syringe with another syringe, labeled fentanyl, which contained no fentanyl.
The investigation of the case was conducted by the U.S. Food and Drug Administration’s Office of Criminal Investigations and the Virginia State Police. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.