Northern District of Georgia

ATLANTA - Joseph Oluwafemi Kolawole Akoshile has been sentenced for a $3.5 million tax fraud scheme relating to false tax returns claiming fuel tax credits.

“Akoshile used multiple aliases to steal millions of dollars from American taxpayers by fraudulently using a tax credit designed to aid business owners,” said U.S. Attorney Ryan K. Buchanan.  “He laundered the money through multiple accounts he controlled in a failed effort to disguise his criminal scheme.”    

“In order to carry out his long running financial fraud, Akoshile and his associates stole the identities of numerous people,” said Demetrius Hardeman, Acting Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “IRS CI special agents remain committed to investigating those who commit financial crimes, including identity theft.  Akoshile’s actions highlights the importance of protecting identifiable information.”

“The Treasury Inspector General for Tax Administration will aggressively pursue those who endeavor to defraud the Internal Revenue Service by exploiting programs which were established to provide assistance to American business owners,” said Mark Morini, Special Agent in charge of TIGTA’s Southeast Field Office.  “We appreciate the efforts of the U.S. Department of Justice and our law enforcement partners in this effort.”

According to U.S. Attorney Buchanan, the charges and other information presented in court: Joseph Oluwafemi Kolawole Akoshile committed a wide-ranging fraud that resulted in the issuance of more than 100 fraudulent treasury checks worth over $3.5 million.  For more than five years, Akoshile and others submitted federal corporate tax returns, claiming fraudulent refunds for a web of corporations set up using stolen identities.  The fraudulent tax returns claimed false fuel tax credits, resulting in large refunds.  The fuel tax credit is intended to assist legitimate businesses in offsetting fuel taxes they pay for off-road vehicles.  The defendant received the fraudulent refund checks and altered them to change the payee to a corporation created for the scheme.  Akoshile then laundered these funds through other accounts, including multiple business accounts he controlled in one of his many aliases.

Joseph Oluwafemi Kolawole Akoshile, 57, of Mansfield, Texas, was sentenced to four years, three months in prison to be followed by two years of supervised release and ordered to pay restitution in the amount of $3,606,990.10.  Akoshile was convicted on these charges on June 9, 2023, after he pleaded guilty.

This case was investigated by the Internal Revenue Service Criminal Investigation and U.S. Treasury Inspector General for Tax Administration.

Assistant U.S. Attorneys Christopher J. Huber and Alana Black prosecuted the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ROME, Ga. – Four former employees of Mohawk Industries, Inc. (“Mohawk”), Jana Kanyadan (Mohawk’s former Global Chief Information Officer), Sivakumar Thiyagasamadram, Madhu Shivalingegowda, and Chintan Sandesara have been indicted for allegedly defrauding Mohawk. 

“These defendants allegedly took advantage of their positions to advance personal interests at Mohawk’s expense,” said U.S. Attorney Ryan K. Buchanan.  “We will prosecute those who abuse their positions of authority to steal from the employers who trust them.” 

“These defendants allegedly violated the trust placed in them by their employer,” said Sean Burke, Assistant Special Agent in Charge of FBI Atlanta. “The FBI works hard to make sure greed like this doesn’t pay off and those who commit fraud are held accountable.”

According to U.S. Attorney Buchanan, the indictment, and other information presented in court: Jana Kanyadan served as Mohawk’s Global Chief Information Officer. Sivakumar Thiyagasamadram, Madhu Shivalingegowda, and Chintan Sandesara were Mohawk employees with responsibility for Information Technology (“IT”). 

In 2019, Mohawk launched a large, multi-year IT project and outsourced work for the IT project to IT consulting firms.  The indictment alleges that the defendants secretly organized and controlled a Georgia company, Meta Technology Platforms, LLC (“Meta Tech”), and used their positions at Mohawk to retain Meta Tech as a Mohawk vendor and divert Mohawk’s outsourced IT consulting work to Meta Tech. 

Between approximately May and October of 2022, Meta Tech submitted invoices to Mohawk totaling approximately $3,034,411.  The invoices that Meta Tech submitted to Mohawk did not disclose the defendants’ relationship to Meta Tech.  The invoices also allegedly charged Mohawk for services that had not been performed, for software that had not been provided, and at inflated hourly rates that Kanyadan approved on Mohawk’s behalf.  Mohawk paid Meta Tech approximately $1,857,741.40 based on these fraudulent invoices.      

Jana Kanyadan, 53, of Marietta, Georgia, Sivakumar Thiyagasamadram, 54, of Cumming, Georgia, Madhu Shivalingegowda, 38, of Acworth, Georgia, and Chintan Sandesara, 39, of Marietta, Georgia, were indicted by a federal grand jury on September 12, 2023, and had their initial appearances on September 21, 2023.  Members of the public are reminded that the indictment contains only charges.  The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.

This case is being investigated by the Federal Bureau of Investigation.

Assistant U.S. Attorney Tal C. Chaiken is prosecuting the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA – Uttam Halder has pleaded guilty to conspiracy to commit wire fraud arising from a $10 million scheme to purchase Supplemental Nutrition Assistance Program benefits from low-income recipients. After his arrest, Halder became a fugitive and attempted to flee to Istanbul, where he was apprehended by foreign authorities.

“The defendant exploited a program designed to provide nutritional assistance for needy citizens by enabling stores to pay cash to customers to redeem their food stamp benefits,” said U.S. Attorney Ryan K. Buchanan.  “His actions diverted millions of dollars in taxpayer funds for his personal gain.  He also tried to evade the consequences of his actions by escaping abroad but was captured and arrested with the assistance of our international law enforcement partners.”

“This investigation and prosecution should send a strong zero-tolerance message to those individuals engaged in the practice of defrauding the taxpayer through SNAP,” said Miles Davis, Special Agent-in-Charge, USDA-Office of Inspector General. “It should also serve as a warning to all stores that participate in the SNAP program as vendors that fraud and trafficking (purchasing those benefits for cash and the sharing of  Point-of-Sale terminals) will be vigorously investigated and prosecuted by the USDA-OIG, the U.S. Attorney's Office, and all its federal, state, and local partners that have a stake in ensuring that fraud is eliminated from taxpayer-funded programs.”

“Halder thought that his scheme to defraud the government and his attempt to evade prosecution would be successful, but thanks to HSI and its law enforcement partners, both here and abroad, he was sadly mistaken,” said HSI Atlanta acting Special Agent in Charge Travis Pickard, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Crime does not pay is the lesson we want others, contemplating scams, to take from this case and change their minds.”

According to U.S. Attorney Buchanan, the charges and other information presented in court: Uttam Halder owned and operated a small meat market in Atlanta called Big Daddy’s Discount Meat (“Big Daddy’s”). Halder enrolled Big Daddy’s as a retailer for the USDA’s Supplemental Nutrition Assistance Program (“SNAP”) in 2014. SNAP, formerly known as the Food Stamp Program, is designed to alleviate hunger among low-income families by providing benefits on Electronic Benefit Transfer (“EBT”) cards that can be exchanged for eligible food items.

Between 2015 and 2020, Halder loaned his EBT terminals to two stores, Food World and Big Brother Mini Supermarket, contrary to SNAP rules. Co-conspirator Paltu Roy, the operator of Big Brother Mini Supermarket, and another co-conspirator who operated Food World agreed to share profits with Halder from Big Daddy’s terminals used illegally at those stores. After receiving Big Daddy’s EBT terminals, both stores made cash payments to customers in return for redeeming their SNAP benefits at the rate of roughly 50 cents on the dollar. During this six-year period, Big Daddy’s terminals collected more than $10 million in fraudulent redemptions of SNAP benefits, and Halder shared a substantial portion of the profits.

Following his arrest in January 2021, Halder was released on bond. Contrary to his bond conditions, Halder fled and became a fugitive in late 2022. In June 2023, foreign authorities in Turkey located Halder when he attempted to enter Istanbul from Cancun, Mexico with a fake passport. Halder was returned to the United States and placed into custody.

Uttam Halder, 42, of Decatur, Georgia, pleaded guilty to one count of conspiracy to commit wire fraud and one count of failure to appear. The sentencing is scheduled for January 30, 2024, before U.S. District Court Judge Michael L. Brown.

His co-conspirator, Paltu Roy, 51, of Stone Mountain, Georgia, pleaded guilty to one count of conspiracy to commit wire fraud on December 9, 2021. Judge Brown sentenced Roy on April 20, 2022, to three years and one month in prison, three years of supervised release, and a special assessment of $100 and ordered him to pay $3,071,235 in restitution to the USDA.

This case is being investigated by the U.S. Department of Agriculture, Office of Inspector General and Homeland Security Investigations.

Assistant U.S. Attorney Nathan P. Kitchens is prosecuting the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.                                                  

ATLANTA – A federal jury has convicted Jalal Hajavi of conspiring to violate the International Emergency Economic Powers Act (“IEEPA”) and the Iranian Transactions and Sanctions Regulations (“ITSR”), smuggling goods from the United States, unlawfully exporting and reexporting goods from the U.S. to Iran without a license, and unlawfully engaging in transactions and dealings based on his participation in a scheme to unlawfully export heavy equipment from the U.S. to Iran by routing the shipments though the United Arab Emirates.

“Hajavi chose to leverage his Florida business to illegally export materials to Iran rather than to lawfully contribute to the U.S. economy,” said U.S. Attorney Ryan K. Buchanan.  “The U.S. trade sanctions against Iran exist to help keep our country and citizens safe. Those who seek to profit by evading these prohibitions will be held accountable.”

“Falsifying export documents in an attempt to obfuscate the transshipment of U.S. commodities through the United Arab Emirates to Iran is a serious violation of U.S. export laws, and will be vigorously investigated,” said John Johnson, Special Agent in Charge, Office of Export Enforcement’s Miami Field Office. “By disrupting illicit procurement networks, we continue to deny U.S. dual-use commodities to countries such as Iran that threaten U.S. national security interests.”

According to U.S. Attorney Buchanan, the charges, and other information presented in court: Hajavi, through his company JSH Heavy Equipment, LLC, conspired with an individual in Iran to export U.S. heavy machinery indirectly to Iran without first obtaining the required licenses from the Office of Foreign Assets Control (“OFAC”). Hajavi orchestrated the scheme by locating heavy equipment for sale, such as bobcats and wheel loaders, and sending information about the equipment to his co-conspirator in Iran. Hajavi purchased the items from U.S. sellers and used freight forwarding companies to ship the heavy equipment from the U.S. to the U.A.E. Hajavi falsely claimed that the items were destined for his U.A.E. customers, which typically were general trading companies located in free trade zones in the U.A.E. But in truth, Hajavi intended for his Iranian co-conspirator to transship those items from the U.A.E. to Iran in circumvention of the U.S. export licensing requirement.

Utilizing this scheme, Hajavi purchased an Ingersoll Rand blasthole drill from a U.S. company. The drill is a type of heavy machinery used to create holes in the ground that are usually then filled with controlled charges. In a sham transaction, Hajavi sold the drill to a U.A.E. company that, in turn, provided the drill to Hajavi’s Iranian co-conspirator, who shipped the tool to Iran.

In addition to evading OFAC licensing requirements, Hajavi concealed his activities with his Iranian co-conspirator by causing false information to be entered into the Automated Export System (“AES”), a U.S. government database containing information about exports from the United States. Hajavi hired a U.S. freight forwarder to arrange the drill’s export from the U.S. to the U.A.E.  As part of the shipping process, the freight forwarder submitted information to AES about the shipment, including the ultimate consignee’s name and the ultimate delivery destination. Hajavi lied to the freight forwarder by claiming that the U.A.E. company was the ultimate consignee and that the ultimate delivery destination was the U.A.E. In fact, Hajavi’s co-conspirator in Iran was the true recipient and Iran was the ultimate delivery destination. 

Sentencing for Jalal Hajavi, 59, of Sterling, Virginia, is scheduled for December 14, 2023, at 10:00 a.m. before U.S. District Judge Thomas W. Thrash.

This case is being investigated by the U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement.

Assistant U.S. Attorney Tracia M. King and Trial Attorney Emma Dinan Ellenrieder of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA - The U.S. Attorney’s Office for the Northern District of Georgia is proud to announce that the Department of Justice’s Office on Violence Against Women (OVW) awarded $2,450,000 to provide legal services and improve the effective coordination of justice systems impacting survivors of sexual assault, domestic violence, dating violence, and stalking.

“Congress passed the Violence Against Women Act in 1994 to catalyze federal efforts to combat crimes against women associated with domestic violence, sexual assault, stalking, and other offenses. I am pleased to announce that our district has been awarded funding from the Office on Violence Against Women to provide critical resources to improve the coordination of these investigations,” said U.S. Attorney Ryan K. Buchanan. “Our office is proud to partner with each of the recipients of these grants and dedicated to collaborating even more closely with these organizations, and others, to combat the scourge of domestic violence to make our communities safer.”

“The Legal Assistance for Victims Grant, in conjunction with the Justice for Families Program and the Domestic Violence Mentor Court Technical Assistance Initiative, serve as a powerful multi-pronged strategy to transform the justice system’s approach to supporting families affected by violence,” stated OVW Director Rosemarie Hidalgo. “These grants enhance court-related programs, trauma-informed training, and resources, while also providing victims with specialized legal support. This includes assistance with securing protective orders and navigating complex family law matters. Collectively, these grants advance a more comprehensive approach, aimed at ensuring that survivors and their families don't merely navigate our legal system, but genuinely find a path to justice and safety.”

The need for specialized legal services is both urgent and essential for survivors of domestic violence and sexual assault. These services provide interventions, such as securing restraining or protective orders, that are crucial for survivor safety.

          •     OVW awarded $1,350,000 under the Legal Assistance for Victims (LAV) Program to the Northern District of Georgia. The LAV Program addresses the legal needs of survivors of sexual assault, domestic violence, dating violence, and stalking.

          •     OVW awarded $400,000 under the Expanding Legal Services Initiative (ELSI) to the Northern District of Georgia. ELSI, which operates under the LAV Program, supports developing new legal services programs.

          •     OVW awarded $700,000 under the Justice for Families (JFF) Program to the Northern District of Georgia. The JFF Program aims to improve the capacity of communities and courts to respond to families impacted by violence.

OVW provides leadership in developing the nation’s capacity to reduce violence through implementing VAWA and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities nationwide that are developing programs, policies, and practices to end domestic violence, dating violence, sexual assault, and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.

The U.S. Attorney’s Office conducts training for local law enforcement officers on federal domestic violence topics, including through the Georgia Law Enforcement Executive Development Seminar (FBI GA LEEDS). Our office has implemented two case referral programs with the Fulton County District Attorney’s Office and at the DeKalb County District Attorney’s Office. Through these strategic enforcement initiatives, we expect to identify and prosecute the most serious perpetrators of domestic violence – including offenders who use and possess firearms, which greatly increases the risk of serious injury or death to the victim.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ROME, Ga. – A Calhoun man who distributed images of child sex abuse and his wife, a former middle school special education teacher who received those images and deleted text messages to conceal his crimes, have been sentenced to federal prison.

“By sharing images depicting the sexual violation of minors, the defendants re-victimized children whose lives have been forever altered by this abuse,” said U.S. Attorney Ryan K. Buchanan. “The conduct in this case is especially egregious given that one of the defendants, a schoolteacher, occupied a position of trust in the community. The Department of Justice is committed to helping to ensure the safety and well-being of children, so we especially place a high priority on protecting and combating sexual exploitation of minors. We will continue to work with our law enforcement partners to protect children from sexual predators and pedophiles.”

“Finding and arresting predators, like these, who distribute images of children being abused is one of our most important missions and we take it seriously, said HSI Atlanta acting Special Agent in Charge Travis Pickard. “HSI, along with our dedicated law enforcement partners, remains committed to identifying individuals who prey on our most vulnerable population — especially those who hold positions of public trust.”

“The possession and distribution of child pornography poses a great threat to our communities. The GBI is devoted to protecting minors in our state and will continue to work with our local, state, and federal partners to ensure we hold those accountable who sexually exploit children,” said Chris Hosey, Director, Georgia Bureau of Investigation.

According to U.S. Attorney Buchanan, the charges and other information presented in court: Beginning no later than in December 2017, William Sandridge began to send his wife, Allyn Sandridge, text messages detailing his sexual fantasies involving prepubescent children. Some of the messages contained images of children engaged in sexually explicit conduct. At that time, Allyn Sandridge was employed as a special education teacher at a charter school in Canton, Georgia.

At William Sandridge’s direction, Allyn Sandridge periodically deleted her husband’s text messages and used an encrypted messaging application. These steps were intended to avoid detection of and conceal William Sandridge’s crimes.

On December 29, 2022, federal, state, and local law enforcement officers executed a search warrant at the Sandridges’ home acting on a tip received by the Georgia Bureau of Investigation. During the search, investigators discovered multiple cell phones and a desktop computer loaded with graphic images of child sex abuse. Allyn Sandridge cooperated with the investigation immediately and disclosed to the officers the material William Sandridge had sent to her phone.

On September 6, 2023, U.S. District Judge William M. Ray, II sentenced the defendants as follows:

• William Sandridge, 42, of Calhoun, Georgia, was sentenced to seven years and three months in prison to be followed by a lifetime of supervised release. He pleaded guilty to distribution of a visual depiction of a minor engaging in sexually explicit conduct on June 6, 2023.

• Allyn Michelle Sandridge, 42, of Calhoun, Georgia, was sentenced to one year and six months in prison to be followed by a lifetime of supervised release.  She pleaded guilty to possession of a visual depiction of a minor engaging in sexually explicit conduct and misprision of a felony on May 25, 2023.

This case was investigated by Homeland Security Investigations, the Georgia Bureau of Investigation, and the Calhoun Police Department.

Assistant U.S. Attorney Theodore S. Hertzberg prosecuted the case.

This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse.  Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA - A Texas man has pleaded guilty to posting a message online threatening several Georgia public officials following the 2020 election.

“All across this country our fellow citizens and neighbors, including many retirees, choose to serve as elections officials, poll workers, and in other capacities to help ensure free and fair elections in the United States. They serve out of a patriotic duty and appreciation for our nation and deserve to do so without fear of retaliation or threats of violence,” said U.S. Attorney Ryan K. Buchanan.  “Stark threatened officials working at all levels of the election process including elected office holders and a volunteer poll worker.  His egregious conduct placed our democracy in jeopardy, striking at the heart of the process we assume to be insulated from such attacks. Our office will remain steadfast in partnering with federal, state, and local authorities to safeguard those who work to secure our elections.”

“This case marks another destructive example of threats of violence to the election community and law enforcement,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “The Department will not tolerate the criminal targeting of the men and women responsible for administering our elections and ensuring that every eligible voter has the opportunity to exercise the most fundamental right in our democracy: the right to vote.” 

“This guilty plea plainly shows that anyone who threatens election officials online will be investigated by the FBI and held accountable for their words” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “We must take calls to violence seriously, whatever their form, especially when they have the potential to result in physical harm and undermine the integrity of U.S. elections.”

According to U.S. Attorney Buchanan, the charges and other information presented in court:  Around Jan. 5, 2021, Chad Christopher Stark posted a message to Craigslist entitled, “Georgia Patriots it’s time to kill [Official A] the Chinese agent - $10,000.” The message included the following: “It’s time to invoke our Second Amendment right it’s time to put a bullet in the treasonous Chinese [Official A]. Then we work our way down to [Official B] the local and federal corrupt judges. It’s our duty as American Patriots to put an end to the lives of these traitors and take back our country by force. . . . If we want our country back we have to exterminate these people. One good loyal Patriot deer hunter in camo and a rifle can send a very clear message to these corrupt governors.. milita up Georgia it’s time to spill blood….  we need to pay a visit to [Official C] and her family as well and put a bullet her behind the ears. Remember one thing local law enforcement the key word being local…..  we will find you oathbreakers and we’re going to pay your family to visit your mom your dad your brothers and sisters your children your wife…  we’re going to make examples of traitors to our country…  death to you and all you communist friends.”

Chad Christopher Stark, 55, of Leander, Texas, pleaded guilty to one count of a sending a threat using a telecommunications device. A sentencing date has not yet been set.

This case is part of the Justice Department’s Election Threats Task Force. Announced by Attorney General Merrick B. Garland and launched by Deputy Attorney General Lisa O. Monaco in June 2021, the task force has led the Department’s efforts to address threats of violence against election workers, and to ensure that all election workers – whether elected, appointed, or volunteer – are able to do their jobs free from threats and intimidation. The task force engages with the election community and state and local law enforcement to assess allegations and reports of threats against election workers, and has investigated and prosecuted these matters where appropriate, in partnership with FBI Field Offices and U.S. Attorneys’ Offices throughout the country. Two years after its formation, the task force is continuing this work and supporting the U.S. Attorneys’ Offices and FBI Field Offices nationwide as they carry on the critical work that the task force has begun.

Under the leadership of Deputy Attorney General Monaco, the task force is led by the Criminal Division’s Public Integrity Section and includes several other entities within the Department of Justice, including the Computer Crime and Intellectual Property Section of the Criminal Division, the Civil Rights Division, the National Security Division, and the FBI, as well as key interagency partners, such as the Department of Homeland Security and the U.S. Postal Inspection Service. For more information regarding the Justice Department’s efforts to combat threats against election workers, read the Deputy Attorney General’s memo.

To report suspected threats or violent acts, contact your local FBI office and request to speak with the Election Crimes Coordinator. Contact information for every FBI field office may be found at www.fbi.gov/contact-us/field-offices/. You may also contact the FBI at 1-800-CALL-FBI (225-5324) or file an online complaint at www.tips.fbi.gov. Complaints submitted will be reviewed by the task force and referred for investigation or response accordingly. If someone is in imminent danger or risk of harm, contact 911 or your local police immediately.

The FBI is investigating this case. 

Assistant U.S. Attorney Brent Alan Gray and Sean F. Mulryne, Director of Enforcement & Litigation in the Election Crimes Branch of the DOJ Criminal Divison’s Public Integrity Section, are prosecuting the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA - John Crittenden, a professor of environmental engineering at the Georgia Institute of Technology and the former director of the Brook Byers Institute for Sustainable Systems, has pleaded guilty to tax fraud for lying on his tax returns by overstating his charitable deductions.

“Charitable giving is a virtue. But Crittenden avoided paying hundreds of thousands of dollars in taxes by lying about his charitable deductions to perpetrate a tax fraud scheme involving Chinese nationals,” said U.S. Attorney Ryan K. Buchanan. “Because of his actions Crittenden will no longer be employed by the university and will also be required to pay all taxes owed.”

“Crittenden’s guilty plea is the result of the determination and hard work of federal investigators and prosecutors who aggressively pursue allegations of tax fraud,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI is determined to root out and prosecute anyone who would try to undermine the tax return system.”

“No matter the scheme or amount, do not falsify your tax returns,” said IRS Criminal Investigation Acting Special Agent in Charge Demetrius Hardeman.  “We have an incredible team of talented, intelligent agents trained to investigate these tax fraud schemes.  Crittenden not only has to make amends by paying his owed taxes, but he also faces jail time, fines, and penalties for his decisions.  This guilty plea is evidence that fraud does not pay.”            

According to U.S. Attorney Buchanan, the charges and other information presented in court: John Crittenden’s academic research focused on scalable water treatment systems and technologies. Crittenden had deep ties to China, in part due to his position at Georgia Tech and his research.

While employed at Georgia Tech and living in the United States, Crittenden partnered with a Chinese national, Duo Li, to operate several companies in China, including Beijing Keruiduo Environmental, Beijing Crittenden Environmental Technology Company, and Kunshan Techfirst. These companies, as well as individuals associated with Duo Li, wired hundreds of thousands of dollars either directly to the charitable donation arm of Georgia Tech, the Georgia Institute of Technology Foundation (GTF), or to Crittenden’s Bank of America account, after which he “donated” the funds to GTF. When the funds arrived at GTF, they were earmarked for Crittenden’s use at Georgia Tech. Regardless of how the funds reached GTF, Crittenden improperly and falsely claimed the transfers to GTF as charitable deductions on his tax returns without recognizing any of the transfers as income.

Crittenden also received transfers to his Bank of America account from Chinese nationals who were participating in post-doctoral research at Georgia Tech or their family members. Crittenden then “donated” these funds to GTF and improperly and falsely took a charitable deduction on his tax returns, while not recognizing any of the funds as income. Neither Georgia Tech nor GTF were aware that Crittenden was conducting this tax fraud scheme.

As part of the plea agreement, prior to sentencing, Crittenden must resign from all positions of employment at the Georgia Institute of Technology and the Georgia Tech Research Institute, pay all taxes owed for tax years 2011 through 2021, and fully cooperate with the Examination Division of the Internal Revenue Service in making a complete and accurate determination of all taxes, penalties, and interest that Crittenden owes.

Sentencing for Crittenden, 73, of Atlanta, Georgia, is scheduled for January 16, 2024, at 10:00 am before U.S. District Judge Leigh Martin May. Crittenden pleaded guilty to a criminal information charging him with making a false statement on a tax return, in violation of Title 26, United States Code, Section 7206(1).

This case is being investigated by the Internal Revenue Service Criminal Investigation and Federal Bureau of Investigation.

Assistant U.S. Attorney Samir Kaushal is prosecuting the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

A Texas man pleaded guilty today in the Northern District of Georgia to posting a message online threatening several Georgia public officials following the 2020 election.

“This case marks another destructive example of threats of violence to the election community and law enforcement,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “The Department will not tolerate the criminal targeting of the men and women responsible for administering our elections and ensuring that every eligible voter has the opportunity to exercise the most fundamental right in our democracy: the right to vote.” 

According to court documents, around Jan. 5, 2021, Chad Christopher Stark, 55, of Leander, posted a message to Craigslist entitled, “Georgia Patriots it’s time to kill [Official A] the Chinese agent - $10,000.” The message included the following: “It’s time to invoke our Second Amendment right it’s time to put a bullet in the treasonous Chinese [Official A]. Then we work our way down to [Official B] the local and federal corrupt judges. It’s our duty as American Patriots to put an end to the lives of these traitors and take back our country by force. . . . If we want our country back we have to exterminate these people. One good loyal Patriot deer hunter in camo and a rifle can send a very clear message to these corrupt governors.. milita up Georgia it’s time to spill blood….  we need to pay a visit to [Official C] and her family as well and put a bullet her behind the ears. Remember one thing local law enforcement the key word being local…..  we will find you oathbreakers and we’re going to pay your family to visit your mom your dad your brothers and sisters your children your wife…  we’re going to make examples of traitors to our country…  death to you and all you communist friends.”

“All across this country our fellow citizens and neighbors, including many retirees, choose to serve as elections officials, poll workers, and in other capacities to help ensure free and fair elections in the United States. They serve out of a patriotic duty and appreciation for our nation and deserve to do so without fear of retaliation or threats of violence,” said U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia. “Stark threatened officials working at all levels of the election process including elected office holders and a volunteer poll worker. His egregious conduct placed our democracy in jeopardy, striking at the heart of the process we assume to be insulated from such attacks. Our office will remain steadfast in partnering with federal, state, and local authorities to safeguard those who work to secure our elections.”

“Today’s guilty plea plainly shows that anyone who threatens election officials online will be investigated by the FBI and held accountable for their words” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “We must take calls to violence seriously, whatever their form, especially when they have the potential to result in physical harm and undermine the integrity of U.S. elections.”

Stark pleaded guilty today to one count of a sending a threat using a telecommunications device. He faces a maximum penalty of two years in prison. A sentencing date has not yet been set. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI Atlanta Field Office is investigating the case. 

Election Crimes Branch Director of Enforcement and Litigation Sean F. Mulryne of the Criminal Division’s Public Integrity Section and Senior Litigation Counsel Brent A. Gray for the Northern District of Georgia are prosecuting this case.

This case is part of the Justice Department’s Election Threats Task Force. Announced by Attorney General Merrick B. Garland and launched by Deputy Attorney General Lisa O. Monaco in June 2021, the task force has led the Department’s efforts to address threats of violence against election workers, and to ensure that all election workers – whether elected, appointed, or volunteer – are able to do their jobs free from threats and intimidation. The task force engages with the election community and state and local law enforcement to assess allegations and reports of threats against election workers, and has investigated and prosecuted these matters where appropriate, in partnership with FBI Field Offices and U.S. Attorneys’ Offices throughout the country. Two years after its formation, the task force is continuing this work and supporting the U.S. Attorneys’ Offices and FBI Field Offices nationwide as they carry on the critical work that the task force has begun.

Under the leadership of Deputy Attorney General Monaco, the task force is led by the Criminal Division’s Public Integrity Section and includes several other entities within the Department of Justice, including the Computer Crime and Intellectual Property Section of the Criminal Division, the Civil Rights Division, the National Security Division, and the FBI, as well as key interagency partners, such as the Department of Homeland Security and the U.S. Postal Inspection Service. For more information regarding the Justice Department’s efforts to combat threats against election workers, read the Deputy Attorney General’s memo.

To report suspected threats or violent acts, contact your local FBI office and request to speak with the Election Crimes Coordinator. Contact information for every FBI field office may be found at www.fbi.gov/contact-us/field-offices/. You may also contact the FBI at 1-800-CALL-FBI (225-5324) or file an online complaint at www.tips.fbi.gov. Complaints submitted will be reviewed by the task force and referred for investigation or response accordingly. If someone is in imminent danger or risk of harm, contact 911 or your local police immediately.

ATLANTA - Maurice Lawson has been sentenced to federal prison for obtaining nearly a half a million dollars by submitting multiple fraudulent Paycheck Protection Program (“PPP”) and Economic Injury Disaster Loan (“EIDL”) applications.

“Congress enacted the Paycheck Protection Program to provide emergency financial assistance to millions of Americans suffering the economic effects of the COVID-19 pandemic. Lawson took advantage of a federal program that depended on self-reporting to get relief in the hands of American businesses as fast as possible,” said U.S. Attorney Ryan K. Buchanan. “His crimes make it harder for the United States to provide disaster relief during the next large-scale emergency. This office, in coordination with our federal, state, and local law enforcement partners, is dedicated to holding individuals who sought to exploit this critical economic safety net accountable for their conduct.”

“Lawson used his position during an unprecedented national pandemic to steal critical taxpayer money intended to provide relief to legitimate small businesses and employees who desperately needed it,” said Special Agent-in-Charge Jerome Winkle with the HUD Office of Inspector General. “HUD OIG remains steadfast in its commitment to working with the U.S. Attorney’s Office and law enforcement partners to aggressively pursue those who engage in activities that threaten the integrity of HUD and other federal programs.”

“We remain committed to combatting fraud within the Paycheck Protection Program,” said Edwin Bonano, Special Agent in Charge of FHFA-OIG’s Southeast Region. “FHFA-OIG will pursue criminals who created fraudulent schemes to divert PPP funds from those it was meant to aid until they are held fully accountable.”

According to U.S. Attorney Buchanan, the charges and other information presented in court: Between April 2020 and March 2021, Lawson applied for at least seven PPP or EIDL loans for six different businesses. The applications contained an assortment of false information, including false Tax Forms 940 and 941, fake social security cards, fraudulent addresses, falsified average monthly payroll claims, and false claims of employing between five and 12 employees. In total, Lawson sought $537,120, and received $419,020, in loan proceeds. Among the businesses used to seek these loans was Coastal Drape, LLC – the same company that Lawson used during his mortgage fraud conspiracy, for which he was sentenced in March 2021 to three years of federal probation. Lawson received funds from one of the fraudulent COVID-19 loan applications days after being sentenced for mortgage fraud.

Maurice Lawson, 39, of Lithia Springs, Georgia, has been sentenced to one year, nine months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $437,870.07. Lawson was convicted on these charges on May 16, 2023, after he pleaded guilty.

This case was investigated by the Department of Housing and Urban Development Office of Inspector General and Federal Housing Finance Agency Office of Inspector General.

Assistant U.S. Attorney Alison Prout prosecuted the case.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA – UBS AG and several of its U.S.-based affiliates (together, “UBS”) have agreed to pay $1.435 billion in penalties to settle a civil action filed in November 2018 alleging misconduct related to UBS’ underwriting and issuance of residential mortgage-backed securities (RMBS) issued in 2006 and 2007.  UBS will pay the United States $1,435,000,000 in civil penalties in exchange for dismissal of the complaint filed in the action.  This settlement resolves the last case brought by a Department of Justice Working Group dedicated to investigating conduct of banks and other entities for their roles in creating and issuing RMBS leading up to the 2008 financial crisis. 

“This settlement represents accountability for those entities and individuals who mistakenly believed themselves to be above the law,” said U.S. Attorney Ryan K. Buchanan.  “UBS’ conduct in this case played a significant role in causing a financial crisis that harmed millions of Americans.  The scope of this settlement should serve as a warning to other financial institutions – both large and small – of the significant penalties that can result when corporations misrepresent vital information to investors and undermine trust in our public markets. We are thankful for the collective efforts of our partners at the U.S. Attorney’s Office for the Eastern District of New York and the investigative agencies to bring this case to resolution.”

“In the wake of the 2008 financial crisis, people all across the country experienced financial ruin and emotional devastation, and many are still recovering nearly 15 years later,” said Associate Attorney General Vanita Gupta. “As this settlement demonstrates, the department and our partner agencies remain committed to holding accountable those who break the law and undermine the well-being of American families.”

“The results achieved by the RMBS Working Group are a testament to the exceptional dedication and hard work by department attorneys over many years,” said Principal Deputy Assistant Attorney General Brian Boynton.  “We are grateful for the outstanding support provided by our partners in federal agencies and states that similarly sought to hold responsible those entities that contributed to the 2008 financial crisis.”

“With this resolution, UBS will pay for its conduct related to its underwriting and issuance of residential mortgage-backed securities.  The substantial civil penalty in this case serves as a warning to other players in the financial markets who seek to unlawfully profit through fraud that we will hold them accountable no matter how long it takes,” stated U.S. Attorney Breon Peace.  “The over $36 billion collected for conduct that fueled the 2008 financial crisis reflects the Department of Justice’s deep commitment to protecting financial markets, investors and the public against fraudulent conduct.”

“The FHFA Office of Inspector General, together with our RMBS Working Group partners, investigated and held accountable those who sought to victimize Fannie Mae, Freddie Mac and investors by selling fraudulent mortgage-backed securities,” said FHFA Inspector General Brian Tomney. “We appreciate our longstanding partnership with the Department of Justice and its vigorous pursuit of justice in this case.”

Following an extensive investigation, the United States filed a complaint alleging that UBS defrauded investors in connection with the sale of 40 RMBS issued in 2006 and 2007.  The complaint alleged that UBS knowingly made false and misleading statements to buyers of these securities relating to the characteristics of the mortgage loans underlying the RMBS in violation of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, 12 U.S.C. § 1833a (FIRREA).  The FIRREA claims were based on alleged violations of the mail, wire, and bank fraud statutes, as well as 18 U.S.C. §§ 1005 and 1014. 

The government’s complaint alleged that contrary to UBS’ representations in publicly filed offering documents, UBS knew that significant numbers of the loans backing the RMBS did not comply with loan underwriting guidelines that were designed to assess borrowers’ ability to repay.  The complaint further asserted that UBS knew that the property values associated with a significant number of the securitized loans were unsupported, and that significant numbers of the loans had not been originated in accordance with consumer protection laws.  UBS was allegedly aware of these significant problems because it had conducted extensive due diligence on the underlying loans prior to the RMBS being issued to determine whether the loans were consistent with representations that would be made to investors.  Ultimately, the 40 RMBS sustained substantial losses. 

With the UBS settlement announced today, the Department of Justice has collected more than $36 billion in civil penalties from 18 major domestic and foreign banks, originators, and rating agencies for their alleged conduct in connection with mortgages securitized in failed RMBS leading up to the 2008 financial crisis.  These resolutions include settlements with eighteen banks, mortgage originators, and rating agencies:  Ally Financial; Aurora Loan Services; Bank of America; Barclays; Citigroup; Credit Suisse; Deutsche Bank; General Electric; Goldman Sachs; HSBC; JPMorgan; Moody’s; Morgan Stanley; Nomura; Royal Bank of Scotland; S&P; Société Générale; and Wells Fargo.  

Collectively, these matters were handled by 11 U.S. Attorney’s Offices and the Civil Division of the Department of Justice, in conjunction with the RMBS Working Group.  The RMBS Working Group was a federal and state law enforcement effort focused on investigating fraud and abuse in the RMBS market that led to the financial crisis.  Formed in 2012, the RMBS Working Group brought together more than 200 attorneys, investigators, analysts and staff from dozens of state and federal agencies, including the FHFA Office of Inspector General, the Department of Housing and Urban Development, the Office of the Special Inspector General for the Troubled Asset Relief Program, the Securities and Exchange Commission, and the FBI, to investigate financial fraud in RMBS. 

The claims resolved in the settlement are allegations only and there has been no determination of liability.    

The government’s case was handled by Assistant U.S. Attorneys Austin M. Hall, Andres H. Sandoval, and former Assistant U.S. Attorney Armen Adzhemyan for the Northern District of Georgia, and Assistant U.S. Attorneys Bonni J. Perlin, Michael J. Castiglione, Richard K. Hayes, Edward K. Newman, and Melanie Speight for the Eastern District of New York, with the support of agents from the Federal Housing Finance Agency-Office of the Inspector General.
 

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmail@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

UBS AG and several of its U.S.-based affiliates (together, UBS) have agreed to pay $1.435 billion in penalties to settle a civil action filed in November 2018 alleging misconduct related to UBS’ underwriting and issuance of residential mortgage-backed securities (RMBS) issued in 2006 and 2007. This settlement resolves the last case brought by a Justice Department working group dedicated to investigating conduct of banks and other entities for their roles in creating and issuing RMBS leading up to the 2008 financial crisis.

Following an extensive investigation, the United States filed a complaint alleging that UBS defrauded investors in connection with the sale of 40 RMBS issued in 2006 and 2007. The complaint alleged that UBS knowingly made false and misleading statements to buyers of these securities relating to the characteristics of the mortgage loans underlying the RMBS in violation of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA). The FIRREA claims were based on alleged violations of the mail, wire, and bank fraud statutes.

“In the wake of the 2008 financial crisis, people all across the country experienced financial ruin and emotional devastation, and many are still recovering nearly 15 years later,” said Associate Attorney General Vanita Gupta. “As this settlement demonstrates, the department and our partner agencies remain committed to holding accountable those who break the law and undermine the well-being of American families.”

“The results achieved by the RMBS Working Group are a testament to the exceptional dedication and hard work by department attorneys over many years,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We are grateful for the outstanding support provided by our partners in federal agencies and states that similarly sought to hold responsible those entities that contributed to the 2008 financial crisis.”

“With this resolution, UBS will pay for its conduct related to its underwriting and issuance of residential mortgage-backed securities. The substantial civil penalty in this case serves as a warning to other players in the financial markets who seek to unlawfully profit through fraud that we will hold them accountable no matter how long it takes,” stated U.S. Attorney Breon Peace for the Eastern District of New York. “The over $36 billion collected for conduct that fueled the 2008 financial crisis reflects the Department of Justice’s deep commitment to protecting financial markets, investors and the public against fraudulent conduct.”

“This settlement represents accountability from those who thought they were above the law,” said U.S. Attorney Ryan Buchanan for the Northern District of Georgia. “UBS’ conduct at issue in this case played a significant role in causing a financial crisis that harmed millions of Americans. We will continue to seek accountability when financial institutions – large or small – misrepresent vital information to investors and undermine trust in our public markets.”

The government’s complaint alleged that contrary to UBS’ representations in publicly filed offering documents, UBS knew that significant numbers of the loans backing the RMBS did not comply with loan underwriting guidelines that were designed to assess borrowers’ ability to repay. The complaint further asserted that UBS knew that the property values associated with a significant number of the securitized loans were unsupported, and that significant numbers of the loans had not been originated in accordance with consumer protection laws. UBS was allegedly aware of these significant problems because it had conducted extensive due diligence on the underlying loans prior to the RMBS being issued to determine whether the loans were consistent with representations that would be made to investors. Ultimately, the 40 RMBS sustained substantial losses.   

“The Federal Housing Finance Agency Office of Inspector General (FHFA-OIG), together with our RMBS Working Group partners, investigated and held accountable those who sought to victimize Fannie Mae, Freddie Mac and investors by selling fraudulent mortgage-backed securities,” said FHFA Inspector General Brian Tomney. “We appreciate our longstanding partnership with the Department of Justice and its vigorous pursuit of justice in this case.”

With the UBS settlement announced today, the Justice Department has collected more than $36 billion in civil penalties from entities for their alleged conduct in connection with mortgages securitized in failed RMBS leading up to the 2008 financial crisis. These resolutions include settlements with the following banks, mortgage originators, and rating agencies: Ally Financial; Aurora Loan Services; Bank of America; Barclays; Citigroup; Credit Suisse; Deutsche Bank; General Electric; Goldman Sachs; HSBC; JPMorgan; Moody’s; Morgan Stanley; Nomura; Royal Bank of Scotland; S&P; Société Générale; and Wells Fargo. 

Collectively, these matters were handled by 11 U.S. Attorneys’ Offices and the Justice Department’s Civil Division, in conjunction with the RMBS Working Group. The RMBS Working Group was a federal and state law enforcement effort focused on investigating fraud and abuse in the RMBS market that led to the financial crisis. Formed in 2012, the RMBS Working Group brought together more than 200 attorneys, investigators, analysts, and staff from dozens of state and federal agencies, including the FHFA-OIG, the Department of Housing and Urban Development, the Office of the Special Inspector General for the Troubled Asset Relief Program, the Securities and Exchange Commission, and the FBI, to investigate financial fraud in RMBS. 

Assistant U.S. Attorneys Bonni J. Perlin, Michael J. Castiglione, Richard K. Hayes, Edward K. Newman and Melanie Speight for the Eastern District of New York, Austin M. Hall and Andres H. Sandoval, and former Assistant U.S. Attorney Armen Adzhemyan for the Northern District of Georgia handled the case. 

The claims resolved in the settlement are allegations only and there has been no determination of liability.

Settlement

ATLANTA - Austin Martin Siampwizi has been arraigned on federal charges of concealment money laundering, money laundering conspiracy, and wire fraud.

“Money launderers used the COVID-19 pandemic to financially benefit while millions of Americans were suffering,” said U.S. Attorney Ryan K. Buchanan. “We will continue to prosecute individuals who defrauded this program at the expense of vulnerable citizens in need of this critical relief.”

“An important part of the mission of the Office of Inspector General is to investigate allegations of fraud related to unemployment insurance programs,” said Mathew Broadhurst, Special Agent-in-Charge, Southeast Region, U.S. Department of Labor, Office of Inspector General. “We will continue to work with our law enforcement partners to aggressively investigate these types of allegations.”

According to U.S. Attorney Buchanan, the indictment, and other information presented in court: Austin Martin Siampwizi allegedly laundered money procured from fraudulent unemployment claims submitted to the Employment Security Department of Washington State (“ESD”). These claims were filed using personal identifiable information stolen from more than 50 individuals. Additionally, Siampwizi has been charged with wire fraud for allegedly submitting a fraudulent Economic Injury Disaster Loan (“EIDL”) application to the SBA.

The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) created a temporary federal program that provided up to 39 weeks of unemployment benefits for those unemployed because of the pandemic and included a provision to provide temporary benefits to individuals who had exhausted their entitlement to regular benefits or were otherwise not eligible.  That temporary federal program was administered by state employment agencies. The CARES Act also allowed the U.S. Small Business Administration (“SBA”) to offer funding to business owners negatively affected by the pandemic.

Austin Martin Siampwizi, 46, of Atlanta, Georgia, was arraigned before U.S. Magistrate Judge J. Christopher C. Bly.  Siampwizi was indicted by a federal grand jury on July 25, 2023.

Members of the public are reminded that the indictment only contains charges.  The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.

This case is being investigated by the Department of Labor Office of Inspector General, the U.S. Secret Service, the Internal Revenue Service Criminal Investigation, the Department of Homeland Security-Homeland Security Investigations, Federal Bureau of Investigation, and the U.S. Postal Inspection Service.

Assistant U.S. Attorney Sarah E. Klapman is prosecuting the case.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA – Lakisha Swope has been sentenced to federal prison for obtaining more than $3.6 million by submitting fraudulent Paycheck Protection Program (“PPP”) applications.

“Congress enacted the Paycheck Protection Program to provide emergency financial assistance to millions of Americans suffering the economic effects of the COVID-19 pandemic. But Swope used the program to commit a nationwide fraud scheme resulting in a nearly four-million-dollar theft of COVID relief funds,” said U.S. Attorney Ryan K. Buchanan. “Her sentence reflects the significance of her criminal conduct and demonstrates the dedication of our office, and federal, state, and local law enforcement partners, to ensure that individuals who seek to exploit this critical economic safety net are held accountable for their crimes.”

“While businesses were suffering and trying their best to make it through the pandemic, Swope chose greed,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Her greed impacted every tax-paying citizen. The FBI and our law enforcement partners will persist in unraveling these fraud schemes and bring criminals to justice.”

According to U.S. Attorney Buchanan, the charges and other information presented in court: Lakisha Swope operated a nationwide scheme seeking to obtain fraudulent PPP funds. The investigation revealed that dozens of false PPP applications were filed from Swope’s residence.

The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) is a federal law enacted on March 29, 2020.  It is designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding. Additional funding was authorized by Congress in December 2020.

The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities.  The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within eight weeks of receipt and use at least 75 percent of the forgiven amount for payroll.

But in this case, FBI agents, while executing a search warrant of Swope’s residence, seized voluminous documents showing her role in managing a conspiracy to defraud the program, including false PPP applications in the names of dozens of businesses.

To carry out this scheme, Swope flew around the country, including to Texas, Missouri, and Florida, to collect loan fees from business owners she was using to file these false PPP applications. Swope’s criminal conduct led to banks making $3,626,961 in fraudulent PPP payments. Swope used the fraudulently obtained funds on luxury clothing, restaurants, hotels, and vacation rentals.

Lakisha Swope, 45, of Suwanee, Georgia, was sentenced to three years and 10 months in prison to be followed by three years of supervised release and was ordered to pay $3,626,961 in restitution to the U.S. Small Business Administration. 

This case was investigated by the Federal Bureau of Investigation.

Assistant U.S. Attorney Thomas J. Krepp prosecuted the case.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA - A jury has convicted Mezemr Abebe Belayneh for fraudulently obtaining U.S. citizenship by lying about his role in persecuting teenagers in Ethiopia for their political opinions.

“The jury’s verdict is aligned with our commitment to holding accountable human rights violators who lie to enter the United States,” said U.S. Attorney Ryan K. Buchanan. “We are grateful for the remarkable effort and perseverance of our law enforcement partners, who sought justice for the courageous victims, several of whom provided testimony of oppressive violence during the trial.”

“The Department of Justice is committed to protecting human rights, and those who commit atrocities will not find safe refuge in the United States,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Thanks to the courage of the victims of these horrible abuses and the persistence of investigators and prosecutors, Mezemr Abebe Belayneh is finally facing justice for the violence he inflicted on young people in Ethiopia 45 years ago.”

“Homeland Security Investigations (HSI) is committed to identifying and apprehending human rights violators who try to evade justice by seeking shelter in the United States,” said Acting Special Agent in Charge Travis Pickard, who oversees HSI operations in Georgia and Alabama. “The United States is not a safe haven for these criminals, and we will never stop looking for them or seeking justice for their victims.”

According to U.S. Attorney Buchanan, the charges and other information presented in court: Mezemr Abebe Belayneh unlawfully obtained U.S. citizenship in 2008 by lying about and concealing that he persecuted and committed acts of violence against political opponents during a period known as “the Red Terror” in Ethiopia. The Red Terror was a campaign of brutal violence in the late 1970s in which Ethiopia’s ruling military council and its supporters detained, interrogated, tortured, and executed thousands of perceived political opponents.

During the Red Terror, Belayneh served as a civilian interrogator at a makeshift prison known as Menafesha in the city of Dilla, Ethiopia. Belayneh detained teenage victims in a crowded prison for weeks or months, interrogated them about their political beliefs, and directed and participated in severe beatings in which they were whipped or hit with sticks. Belayneh also forced prisoners to physically fight one another for the prison guards’ amusement. Belayneh concealed that conduct when he obtained a visa to enter the United States in 2001 and when he naturalized to become a U.S. citizen in 2008.

Mezemr Abebe Belayneh, 67, of Snellville, was convicted by a jury on July 26, 2023.  The jury convicted Belayneh of one count of procuring citizenship contrary to law and one count of procuring citizenship to which he was not entitled. He is scheduled to be sentenced on November 1, 2023.

The HSI Atlanta Field Office investigated the case, with coordination provided by the Human Rights Violators and War Crimes Center (HRVWCC). Established in 2009, the HRVWCC furthers the government’s efforts to identify, locate, and prosecute human rights abusers in the United States, including those who are known or suspected to have participated in persecution, war crimes, genocide, torture, extrajudicial killings, female mutilation, and the use or recruitment of child soldiers.

Assistant U.S. Attorney Tal C. Chaiken and Trial Attorney Patrick Jasperse of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP) are prosecuting the case, with assistance from HRSP Senior Historian Dr. Christopher Hayden.  The Justice Department’s Office of International Affairs also provided significant assistance.

Members of the public who have information about former human rights violators in the United States are urged to contact U.S. law enforcement through the HSI tip line at 1-866-DHS-2-ICE or its online tip form at www.ice.gov/exec/forms/hsi-tips/tips.asp.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

A federal jury in the Northern District of Georgia convicted a Georgia man yesterday of fraudulently obtaining U.S. citizenship by lying about his role in persecuting teenagers in Ethiopia for their political opinions.

According to court documents and evidence presented at trial, Mezemr Abebe Belayneh, 67, of Snellville, unlawfully obtained U.S. citizenship in 2008 by lying about and concealing that he persecuted and committed acts of violence against political opponents during a period known as “the Red Terror” in Ethiopia. The Red Terror was a campaign of brutal violence in the late 1970s in which Ethiopia’s ruling military council and its supporters detained, interrogated, tortured, and executed thousands of perceived political opponents.

“The Department of Justice is committed to protecting human rights, and those who commit atrocities will not find safe refuge in the United States,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Thanks to the courage of the victims of these horrible abuses and the persistence of investigators and prosecutors, Mezemr Abebe Belayneh is finally facing justice for the violence he inflicted on young people in Ethiopia 45 years ago.”

“The jury’s verdict is aligned with our commitment to holding accountable human rights violators who lie to enter the United States,” said U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia. “We are grateful for the remarkable effort and perseverance of our law enforcement partners, who sought justice for the courageous victims, several of whom provided testimony of oppressive violence during the trial.”

During the Red Terror, Belayneh served as a civilian interrogator at a makeshift prison known as Menafesha in the city of Dilla, Ethiopia. Belayneh detained teenage victims in a crowded prison for weeks or months, interrogated them about their political beliefs, and directed and participated in severe beatings in which they were whipped or hit with sticks. Belayneh also forced prisoners to physically fight one another for the prison guards’ amusement. Belayneh concealed that conduct when he obtained a visa to enter the United States in 2001 and when he naturalized to become a U.S. citizen in 2008.

“Homeland Security Investigations (HSI) is committed to identifying and apprehending human rights violators who try to evade justice by seeking shelter in the United States,” said Acting Special Agent in Charge Travis Pickard, who oversees HSI operations in Georgia and Alabama. “The United States is not a safe haven for these criminals, and we will never stop looking for them or seeking justice for their victims.”

The jury convicted Belayneh of one count of procuring citizenship contrary to law and one count of procuring citizenship to which he was not entitled. He is scheduled to be sentenced on Nov. 1 and faces a maximum penalty of 10 years in prison for each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

HSI Atlanta investigated the case, with coordination provided by the Human Rights Violators and War Crimes Center (HRVWCC). Established in 2009, the HRVWCC furthers the government’s efforts to identify, locate, and prosecute human rights abusers in the United States, including those who are known or suspected to have participated in persecution, war crimes, genocide, torture, extrajudicial killings, female mutilation, and the use or recruitment of child soldiers.

Trial Attorney Patrick Jasperse of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP) and Assistant U.S. Attorney Tal C. Chaiken for the Northern District of Georgia are prosecuting the case, with assistance from HRSP Senior Historian Dr. Christopher Hayden. The Justice Department’s Office of International Affairs also provided significant assistance.

Members of the public who have information about former human rights violators in the United States are urged to contact U.S. law enforcement through the HSI tip line at 1-866-DHS-2-ICE or its online tip form at www.ice.gov/exec/forms/hsi-tips/tips.asp.

ATLANTA - Ronald Bell has been sentenced to two years and nine months in prison for extorting Georgia Tech.  Bell recruited a security guard to falsely claim that the guard witnessed an assault by its basketball coach in exchange for part of the extortion payout he expected to receive from the university. 

“Ronald Bell tried to extort Georgia Tech and ruin the reputation of its basketball coach,” said U.S. Attorney Ryan K. Buchanan.  “As federal prosecutors, we have a responsibility to the citizens of this district to pursue accountability and justice for crimes of sexual violence.  But in this case Bell attempted to exploit the mission of our office, and law enforcement partners, to combat sexual assault through a brazen effort to enrich himself at the expense of Georgia Tech and a member of its staff. Bell has now been held accountable for his crime.”

“Bell sought to severely damage the reputation of the institution and their coach solely for his own financial gain,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “This sentence proves that the FBI will not tolerate false allegations and will do everything in our power to seek the truth and hold individuals who commit these type of crimes accountable for their selfish actions.”

According to U.S. Attorney Buchanan, the charges and other information presented in court: Ronald Bell pleaded guilty to conspiring with his co-defendant, Jennifer Pendley, and a security guard at Georgia Tech, to extort the university by falsely accusing the coach of the men’s basketball team of sexual assault.  Bell recruited the security guard to falsely claim that the guard witnessed an assault by the coach.  Bell told the security guard that the false accusation of sexual assault could be worth $20 million to Bell and Pendley and promised the guard a share of the money and a new Jeep.

Bell also communicated with representatives of Georgia Tech and demanded money in exchange for not reporting the fictitious sexual assault.  For example, he texted a representative of Georgia Tech that: “This is going to get very ugly.  GT has made no effort . . . to amicably resolve this . . . I guess this has to get ugly.  I tried to resolve this without damaging GT’s reputation . . . .”

After Georgia Tech refused to pay Bell, Pendley filed a lawsuit claiming sexual battery, sexual assault, and intentional infliction of emotional distress.  These claims falsely alleged that the guard witnessed the coach sexually assault Pendley.  Ultimately, the security guard admitted that his statements were false and that Bell asked him to lie to support the false sexual assault claim.

Ronald Bell, 57, of Oro Valley, Ariz., was sentenced to two years, nine months in prison to be followed by three years of supervised release.  Bell was convicted of the charge of conspiracy on March 1, 2023, after he pleaded guilty.

This case was investigated by the Federal Bureau of Investigation.

Assistant U.S. Attorney Christopher J. Huber prosecuted the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA – The U.S. Attorney’s Office for the Northern District of Georgia partnered with the Georgia Alliance for School Resource Officers and Educators, the Georgia Public Safety Training Center, and the Georgia Gang Investigators Association last week to provide an intensive law enforcement training, “G.R.E.A.T.” (Gang Resistance Education and Training), for more than 40 police officers from school systems in the Northern District of Georgia. 

“Many of law enforcement’s best work happens daily in our schools to keep our children safe while they learn. We are excited to facilitate this training, which will boost the ability of school resource officers to better connect with students in a positive way,” said U.S. Attorney Ryan K. Buchanan. “Our goal is to successfully divert children from the destructive life of crime that gang activity fosters. G.R.E.A.T. offers real-time skills training aimed at preparing officers for interactions with students who may face decisions regarding gang-affiliation, frequently by force. This training enables our office to expand our multi-faceted approach to stemming youth violence, youth incarceration and gang recruitment, providing an excellent addition to our annual summer youth violence intervention programs.”

“The voices of gangs are very loud in our kids' ears.  They are robbing them of their opportunity for success.  Our voices must be louder!  Thanks to the U.S. Attorney, GASROE, GPSTC, and G.R.E.A.T., we can provide our kids with tools to help resist gangs,” said Ronald S. Applin Sr., Chief of Police, Executive Director of Safety, Atlanta Public Schools Police.

“It was an honor to work with the G.R.E.A.T. organization to host this gang intervention training with School Resource Officers (SRO) throughout the Northern District of Georgia. This training is another way to enhance our SROs skills and expertise in protecting our youth from gangs. Furthermore, we are grateful to have strong partnerships with the U.S. Attorney’s Office, Georgia Alliance for School Resource Officers and Educators, and Georgia Gang Investigators Association to bring trainings such as these to support our SROs in building strong relationships with our youth,” said Chris Wigginton, Executive Director, Georgia Public Safety Training Center.

G.R.E.A.T. is an evidence-based gang and violence prevention program built around school-centered, law enforcement officer-instructed classroom curricula. Since its inception, G.R.E.A.T. has been used to train thousands of sworn officers from around the United States as certified G.R.E.A.T. instructors.

The program is designed to prevent and reduce delinquency, youth violence, and gang membership – particularly for children during those formative years when the threat of introduction into gangs is most acute. The program also seeks to help children develop a more positive relationship with law enforcement and to offer students opportunities to model and practice life skills and attitudes needed to treat others with respect and empathy, make better choices, and set positive and achievable goals.

U.S. Attorney Buchanan, during televised remarks this week, emphasized the vital role that positive interactions between school children and law enforcement officers can play in preventing gangs from recruiting children in our communities (see U.S. Attorney’s Interview).  “As we work to make our schools and communities safer, we know that building trust is critical,” said U.S. Attorney Buchanan.  “G.R.E.A.T. will help these police officers develop skills critical in creating meaningful and positive interactions between students and law enforcement officers.  These officers are already committed to keeping our children safe, and we believe this additional training will better enable them to speak directly to gang influences.”

The training arrived just in time for the start of the 2023-2024 school term. Determined to help keep children in the Northern District of Georgia safe in schools and out of gangs, over 40 school resource officers in metro-Atlanta agreed to participate in this week-long, intensive program. These officers, specifically chosen by their respective agencies, serve at over 70 local schools that enroll over 26,000 students. Several of the officers in attendance remarked on the critical need for law enforcement officers to hone skills in connecting with school children and gaining their trust – a central aim of the G.R.E.A.T. training curricula.

The training took place July 17- 21, 2023, at the Georgia Public Safety Training Center in Forsyth, and was presented by the Institute for Intergovernmental Research, a highly experienced team of professionals from around the country with extensive experience in gang prevention and intervention. 

This training is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

The former executive vice president of an Atlanta engineering firm was sentenced today to five years in prison for paying bribes to two City of Atlanta officials in exchange for steering city business worth millions of dollars to his company, paying bribes to a former DeKalb County, Georgia, official in an attempt to obtain county contracts, and evading over $1.5 million in taxes. 

According to court documents, Lohrasb “Jeff” Jafari, 72, of Alpharetta, Georgia, was the executive vice president of PRAD Group, an architectural, design, and construction management firm headquartered in Atlanta that performed services for the City of Atlanta and DeKalb County. Jafari also oversaw PRAD Group’s finances. From January 2003 to February 2017, Adam Smith served as the chief procurement officer (CPO) for the City of Atlanta and supervised the city’s purchasing activities and its expenditure of billions of dollars of public money. From April 2011 to May 2016, Jo Ann Macrina served as the City of Atlanta’s Commissioner of the Department of Watershed Management, a cabinet-level position from which she managed the city’s drinking water and wastewater systems and was responsible for an annual budget exceeding $500 million.

Jafari gave Smith and Macrina cash and other items of value to obtain business with the City of Atlanta. In exchange for those payments, Smith and Macrina conspired with Jafari to ensure that PRAD Group received city business worth millions of dollars, including by agreeing to replace two evaluators on the selection team for the city’s Architectural and Engineering contract and re-scoring an evaluation so that the city would award the contract to Jafari’s company.

During Smith’s tenure as the CPO, the City of Atlanta awarded contracts worth millions of dollars to PRAD Group and joint venture projects of which PRAD Group was a partner. For years, Jafari met privately with Smith on multiple occasions, frequently at local restaurants. During these meetings, Jafari and Smith discussed City of Atlanta procurement projects, bids, and solicitations. Often at the time of these meetings, Jafari was actively seeking additional work and assistance with ongoing city projects. Jafari paid Smith $1,000 in cash in the bathroom of the restaurant after most of the meetings. In return for these bribe payments, Jafari expected Smith to use his position and power to assist Jafari with contracting and procurement with the City of Atlanta. From at least 2014 to January 2017, Jafari paid Smith more than $40,000 in cash with the intent to influence Smith in his role as the city’s CPO.

In February 2017, Jafari became aware of the federal investigation into his bribe payments to Smith and confronted Smith at Atlanta City Hall. Jafari insisted that Smith lie to the FBI by denying that Smith took bribe money from him. 

From at least 2013 through May 2016, Macrina met with Jafari to discuss City of Atlanta procurement projects, bids, and solicitations. Often when they met, Jafari was actively seeking contracts, projects, and work with the City of Atlanta. To obtain city work, Jafari promised Macrina a lucrative job with PRAD Group and, directly or through a PRAD Group employee, gave Macrina $10,000 in cash, jewelry, a room at a luxury hotel in Dubai, a luxury shopping trip in Dubai, and landscaping work at her home. Shortly after the City of Atlanta fired her, Macrina began working for Jafari and PRAD Group. Between June and September 2016, Jafari and/or PRAD Group paid Macrina $30,000 in four separate payments.

In April and August 2014, the FBI conducted two undercover operations using a confidential source. During two secretly recorded meetings, the confidential source met with Jafari at local restaurants, where Jafari sought assistance from the source to obtain work in DeKalb County. After the meetings, Jafari directed the source to the bathroom of the restaurants where Jafari made cash payments of $1,000 and $1,500.

In addition, from 2014 to 2016, Jafari neither filed personal tax returns, nor paid any income taxes to the IRS. During those years, Jafari withdrew large amounts of cash from corporate bank accounts and used money from the PRAD Group’s corporate accounts to pay for various personal expenses, including several luxury vehicles. Jafari evaded the payment of at least $1.5 million in taxes.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Acting Special Agent in Charge Demetrius Hardeman of the IRS Criminal Investigation (IRS-CI) Atlanta Field Office made the announcement.

The FBI Atlanta Field Office and IRS-CI investigated the case.

Trial Attorney Jolee Porter of the Criminal Division’s Public Integrity Section, Trial Attorney Todd Ellinwood of the Justice Department’s Tax Division, and Assistant U.S. Attorneys Jeffrey W. Davis and Nathan P. Kitchens for the Northern District of Georgia prosecuted the case.

ATLANTA - Lohrasb “Jeff” Jafari, the former Executive Vice President of Atlanta engineering firm, PRAD Group, Inc., has been sentenced for paying bribes to two City of Atlanta officials in exchange for steering city business worth millions of dollars to his company, paying bribes to a former DeKalb County, Georgia, official in an attempt to obtain county contracts, and evading over $1.5 million in taxes. 

“Jeff Jafari paid bribe after bribe to high-ranking government officials in the City of Atlanta and DeKalb County over several years and thereby obtained lucrative city contracts worth tens of millions of dollars,” said U.S. Attorney Ryan K. Buchanan.  “The public paid a heavy price from every project unfairly awarded to Jafari’s companies through corruption, and he then compounded his harm by never paying any tax on his substantial personal income.  His greed delivered a hard blow to public trust in honest and fair government, but this sentence underscores our commitment to prosecuting corruption in any form.”

"Circumventing the process to hire contractors for the city by accepting bribes to profit personally is one of the highest forms of public corruption," said Keri Farley, Special Agent in Charge of FBI Atlanta. "As this sentencing shows, the FBI and the City of Atlanta will not tolerate anyone who takes advantage of city funds and abuses their position of trust.”

“Residents expect fair and open competition for city contracts,” said Demetrius Hardeman, Acting Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “City officials who accept bribes undermine the contracting process and diminish trust in the government. IRS Criminal Investigation and our partners will continue investigating and holding those accountable who take the public trust for granted to enrich themselves.”

According to the charges and other information presented in court:  From 1984 to 2018, PRAD Group was an architectural, design, and construction management firm headquartered in Atlanta, Georgia, that performed services for the City of Atlanta and DeKalb County, Georgia.  Jafari served as PRAD Group’s Executive Vice President and oversaw PRAD Group’s finances.

From January 2003 to February 2017, Adam Smith served as the Chief Procurement Officer (CPO) for the City of Atlanta and supervised the city’s purchasing activities and its expenditure of billions of dollars of public money.  From April 2011 to May 2016, Jo Ann Macrina served as the City of Atlanta’s Commissioner of the Department of Watershed Management, a cabinet-level position from which she managed the City’s drinking water and wastewater systems and was responsible for an annual budget exceeding $500 million.

Jafari gave Smith and Macrina cash and other items of value to obtain business with the City of Atlanta.  In exchange for those payments, Smith and Macrina conspired with Jafari to ensure that PRAD Group received city business worth millions of dollars, including by agreeing to replace two evaluators on the selection team for the city’s Architectural and Engineering contract and to re-score an evaluation so that Jafari’s company would be awarded a contract.

During Smith’s tenure as the CPO, the City of Atlanta awarded contracts worth millions of dollars to PRAD Group and joint venture projects of which PRAD Group was a partner. For years, Jafari met privately with Smith on multiple occasions, frequently at local restaurants. During these meetings, Jafari and Smith discussed City of Atlanta procurement projects, bids, and solicitations. Often at the time of these meetings Jafari was actively seeking additional work and/or assistance with ongoing city projects. Jafari paid Smith $1,000 in cash in the bathroom of the restaurant after most of the meetings. In return for these bribe payments, Jafari expected Smith to use his position and power to assist Jafari with contracting and procurement with the City of Atlanta.  From at least 2014 to January 2017, Jafari paid Smith more than $40,000 in cash with the intent to influence Smith in his role as the city’s CPO.

In February 2017, Jafari became aware of the federal investigation into his bribe payments to Smith and confronted Smith at Atlanta City Hall. Jafari insisted that Smith lie to the FBI by denying that Smith took bribe money from him. 

From at least 2013 through May 2016, Macrina met with Jafari to discuss City of Atlanta procurement projects, bids, and solicitations. Often at the time of these meetings, Jafari was actively seeking contracts, projects, and work with the City of Atlanta. To obtain city work, Jafari promised Macrina a lucrative job with PRAD Group and, directly or through a PRAD Group employee, gave Macrina $10,000 in cash, jewelry, a room at a luxury hotel in Dubai, a luxury shopping trip in Dubai, and landscaping work at her home. Shortly after the City of Atlanta fired her, Macrina began working for Jafari and PRAD Group. Between June and September 2016, Jafari and/or PRAD Group paid Macrina $30,000 in four separate payments.

On April 8 and August 21, 2014, the FBI conducted two undercover operations using a confidential source (who at the time, was a high-ranking DeKalb County official).  During two surreptitiously recorded meetings, the confidential source met with Jafari at local restaurants, where Jafari sought assistance from the confidential source to obtain work in DeKalb County. After the meetings, Jafari directed the confidential source to the bathroom of the restaurants where Jafari paid the confidential source cash payments of $1,000 and $1,500.

From 2014 to 2016, Jafari neither filed personal tax returns, nor paid any income taxes to the IRS. During those years, Jafari withdrew large amounts of cash from corporate bank accounts and used money from the PRAD Group’s corporate accounts to pay for various personal expenses, including several luxury vehicles. Jafari evaded the payment of at least $1.5 million in taxes.

Lohrasb “Jeff” Jafari, 72, of Alpharetta, Georgia, was sentenced before U.S. District Judge Steve C. Jones to five years in prison, three years supervised release, a $300 special assessment, and $909,674 in restitution.  In April 2023, Jafari pleaded guilty to one count each of conspiratorial bribery, substantive bribery, and tax evasion.

The Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation investigated the case.

Assistant U.S. Attorneys Jeffrey W. Davis and Nathan P. Kitchens, Trial Attorney Jolee Porter of the Justice Department’s Public Integrity Section, and Trial Attorney Todd Ellinwood of the Justice Department’s Tax Division prosecuted the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA - Stephen Gordon Grimes has been sentenced for producing child pornography overseas and transporting the material to the United States.  Over the course of three years, he recorded videos of his sexual abuse of girls as young as four years old.

“Grimes exploited poverty in the Philippines to gain access to multiple young girls,” said U.S. Attorney Ryan K. Buchanan. “He sexually abused these children for multiple years and recorded the crimes. His sentence rightly reflects the harm that he inflicted on these children.”

“I’m thankful for the successful resolution of and I’m happy that the victims can begin the healing process knowing that this predator will no longer be able to prey upon them,” said Acting Special Agent in Charge Travis Pickard, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI and its law enforcement partners around the globe work tirelessly to protect the most vulnerable population and hold those who seek to prey upon them, accountable.”

According to U.S. Attorney Buchanan, the charges and other information presented in court: around 2009, Grimes met two Filipino women in an online chat room. These women, who were sisters, agreed to arrange for Grimes to sexually exploit young girls in the Philippines, including the children of one of the women. Grimes worked as a civilian contractor on a Navy ship and often traveled to the Philippines at the end of each contract.  He paid one of the women $500 a month to gain exclusive access to his child victims while he was in the Philippines.

Beginning no later than February 2016 and continuing until May 2019, Grimes used a GoPro device to record his sexual abuse of Filipino girls between the ages of four and 13 years. He also used a cell phone camera to record his sexual assault of the girls.

When Grimes traveled from South Korea to Hartsfield-Jackson International Airport in Atlanta on September 29, 2020, special agents with Homeland Security Investigations (HSI) confiscated his computers, cell phone and other electronic devices. A subsequent analysis of these items revealed that he had produced 340 videos and 650 images of his abuse of Filipino girls. The analysis of his computer also showed that he downloaded 523 videos and 4,470 images of child pornography from the internet.

Following Grimes’ arrest, HSI special agents undertook an operation that led to the rescue of the girls whom he had exploited and resulted in the local prosecution of the two women who conspired with Grimes.

Stephen Gordon Grimes, 51, of Lompoc, California, has been sentenced to 50 years in prison to be followed by a lifetime term of supervised release.  Grimes was found guilty by a jury on April 7, 2023, of multiple counts of producing child pornography outside the United States, attempting to transport child pornography, and possessing child pornography. Parole does not exist in the federal prison system.

This case was investigated by Homeland Security Investigations.

Assistant U.S. Attorneys Paul R. Jones and Amy M. Palumbo prosecuted the case.

This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse.  Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

The Justice Department announced today that it has opened a civil investigation into the conditions in the Fulton County Jail in Georgia.

Based on an extensive review of publicly available information and information gathered from stakeholders, the Department has found significant justification to open this investigation, including credible allegations that an incarcerated person died covered in insects and filth, that the Fulton County Jail is structurally unsafe, that prevalent violence has resulted in serious injuries and homicides, and that officers are being prosecuted for using excessive force.

The investigation thus will examine living conditions, medical and mental health care, use of excessive force, and protection from violence. The investigation will also examine whether Fulton County and the Fulton County Sheriff’s Office discriminate against persons with psychiatric disabilities inside the jail.

“People in prisons and jails are entitled to basic protections of their civil rights,” said Attorney General Merrick B. Garland. “We launched this investigation into the Fulton County Jail based on serious allegations of unsafe, unsanitary living conditions at the jail, excessive force and violence within the jail, discrimination against incarcerated individuals with mental health issues, and failure to provide adequate medical care to incarcerated individuals. During this comprehensive review of the conditions of confinement at the Fulton County Jail, the Justice Department will determine whether systemic violations of federal laws exist, and if so, how to correct them.”

“The unconstitutional conditions that we see too often inside jails and prisons have no place in society today,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We are launching this investigation to determine whether Fulton County’s treatment of people in the jail complies with constitutional standards. We are committed to ensuring jail and prison facilities provide constitutional conditions, in which all people can live safely and receive medical care. Incarceration should never include exposure to unconstitutional living conditions, including the risk of serious harm from violence.”

“All Georgians deserve fairness from the institutions that serve us, including our local jails,” said U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia. “The recent allegations of filthy housing teeming with insects, rampant violence resulting in death and injuries, and officers using excessive force are cause for grave concern and warrant a thorough investigation. This investigation is part of our ongoing efforts to ensure that citizens are safe, and their constitutional rights protected, even while they are in custody.”

Department officials have informed Fulton County officials and the Fulton County Sheriff of the investigation. They pledged to cooperate with the investigation.

The Department has not reached any conclusions regarding the allegations in this matter. The investigation will be conducted under the Civil Rights of Institutionalized Persons Act (CRIPA) and the Americans with Disabilities Act (ADA). Both statutes give the Department the authority to investigate systemic violations of the rights of people confined to correctional facilities. The Department’s work has led to important reforms to protect the rights of people in jails and prisons. 

The Civil Rights Division’s Special Litigation Section is conducting this investigation jointly with the U.S. Attorney’s office in the Northern District of Georgia. Individuals with relevant information are encouraged to contact the Department via phone at (888) 473-4092 or by email at fultoncountyjail@usdoj.gov.

Additional information about the Civil Rights Division’s work regarding correctional facilities is available on its website at www.justice.gov/crt/rights-persons-confined-jails-and-prisons.

ATLANTA - The U.S Attorney’s Office for the Northern District of Georgia and the Department of Justice announced that it has opened a civil investigation into the conditions in the Fulton County Jail in Georgia.

“People in prisons and jails are entitled to basic protections of their civil rights,” said Attorney General Merrick B. Garland. “We launched this investigation into the Fulton County Jail based on serious allegations of unsafe, unsanitary living conditions at the jail, excessive force and violence within the jail, discrimination against incarcerated individuals with mental health issues, and failure to provide adequate medical care to incarcerated individuals. During this comprehensive review of the conditions of confinement at the Fulton County Jail, the Justice Department will determine whether systemic violations of federal laws exist, and if so, how to correct them.”

“All Georgians deserve fairness from the institutions that serve us, including our local jails,” said U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia. “The recent allegations of filthy housing teeming with insects, rampant violence resulting in death and injuries, and officers using excessive force are cause for grave concern and warrant a thorough investigation. This investigation is part of our ongoing efforts to ensure that citizens are safe, and their constitutional rights protected, even while they are in custody.”

“The unconstitutional conditions that we see too often inside jails and prisons have no place in society today,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “We are launching this investigation to determine whether Fulton County’s treatment of people in the jail complies with constitutional standards. We are committed to ensuring jail and prison facilities provide constitutional conditions, in which all people can live safely and receive medical care. Incarceration should never include exposure to unconstitutional living conditions, including the risk of serious harm from violence.”

Based on an extensive review of publicly available information and information gathered from stakeholders, the Department has found significant justification to open this investigation, including credible allegations that an incarcerated person died covered in insects and filth; that the Fulton County Jail is structurally unsafe; that prevalent violence has resulted in serious injuries and homicides; and that officers are being prosecuted for using excessive force.

The investigation thus will examine living conditions, medical and mental health care, use of excessive force, and protection from violence. The investigation will also examine whether Fulton County and the Fulton County Sheriff’s Office discriminate against persons with psychiatric disabilities inside the Jail.

The Department has not reached any conclusions regarding the allegations in this matter. The investigation will be conducted under the Civil Rights of Institutionalized Persons Act (CRIPA) and the Americans with Disabilities Act (ADA). Both statutes give the department the authority to investigate systemic violations of the rights of people confined to correctional facilities. The department’s work has led to important reforms to protect the rights of people in jails and prisons. 

Assistant U.S. Attorney’s Aileen Bell Hughes, Tiffany Dillingham, and Rebeca Ojeda of the Northern District of Georgia are conducting this investigation jointly with the DOJ Civil Rights Division’s Special Litigation Section. Individuals with relevant information are encouraged to contact the department via phone at (404) 581-4626 or by email at usagan.civilrights@usdoj.gov.

Additional information about the DOJ Civil Rights Division’s work regarding correctional facilities is available on its website at https://www.justice.gov/crt/rights-persons-confined-jails-and-prisons.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA - Kayricka Wortham has been sentenced for stealing more than $9.4 million from Amazon.com while employed as a manager for the company.  Seven individuals, including Wortham, have now been charged in connection with the scheme.

“The defendant abused her position of trust at Amazon to steal nearly $10 million from the company based on a brazen fraud scheme involving fake vendors and fictitious invoices,” said U.S. Attorney Ryan K. Buchanan.  “She then committed new crimes while on bond, even creating a fake dismissal document purporting to be from the court and that included the forged signature of the Chief U.S. District Judge, all for the purpose of misleading a franchising company about the status of her criminal charges.  Her prison sentence recognizes the magnitude of her fraud and serves to protect the integrity of our courts and justice system.”

“The Secret Service takes cases of fraud extremely seriously,” said Special Agent in Charge of the U.S. Secret Service’s Atlanta Field Office Steven R. Baisel. “This individual stole millions from a business that employed her – exploiting not only their trust, but our nation’s financial systems. Thanks to the hard work of our partners in the U.S. Attorney’s office, her sentence reflects the seriousness of her crimes and sends a message that this kind of fraudulent activity will not be tolerated.”

According to U.S. Attorney Buchanan, the charges and other information presented in court:  Kayricka Wortham abused her position at Amazon to submit more than $10 million in fictitious invoices for fake vendors, causing Amazon to pay approximately $9.4 million to Wortham and her co-conspirators.

From about August 2020 to March 2022, Wortham worked as an Operations Manager at the Amazon Warehouse in Smyrna, Georgia. In her position, Wortham supervised others and acted with the authority to approve both new vendors and the payment of vendor invoices for Amazon.

Wortham, who was the leader of the scheme, provided fake vendor information to unknowing subordinates and asked them to input the information into Amazon’s vendor system. Once the information was entered, Wortham approved the fake vendors, enabling them to submit invoices.  Wortham and co-conspirators then submitted fictitious invoices to Amazon, falsely representing that the vendors had provided goods and services to Amazon.  Wortham approved the invoices, causing Amazon to transfer millions in fraudulent proceeds to bank accounts controlled by her and her co-conspirators. 

Wortham conspired with others, including Brittany Hudson, in the scheme.  Hudson was in a relationship with Wortham and owned a business, Legend Express LLC, that contracted with Amazon to deliver packages to customers.  Hudson allegedly worked with Wortham to submit millions in fictitious invoices for fake vendors to Amazon. Wortham and Hudson purchased expensive real estate and luxury cars, including a nearly $1 million home in Smyrna, Georgia, a 2019 Lamborghini Urus, a 2021 Dodge Durango, a 2022 Tesla Model X, a 2018 Porsche Panamera, and a Kawasaki ZX636 motorcycle, all with fraudulent proceeds from the scheme.

Wortham also recruited co-conspirators Demetrius Hines, who was in Loss Prevention at Amazon, and Laquettia Blanchard, who worked as a Senior Human Resources Assistant at the company.  Hines and Blanchard provided names and Social Security numbers to Wortham to create additional fake vendor accounts.  Blanchard provided names of relatives and associates.  Hines provided stolen personal identifying information that he purchased from JaQuan Frazier, who in turn allegedly purchased the information from Darrel J. Burgo, also known as “Fleet.”  Hines and Blanchard were paid in fraudulent proceeds.  Hines also recruited Jamar L. James, Sr., another Operations Manager at Amazon’s location in Duluth, Georgia, into the scheme.  Like Wortham, James allegedly approved fake vendors and fictitious invoices, including after Wortham left Amazon in March 2022.

While on bond, Wortham and Hudson committed new criminal conduct that resulted in the revocation of their bonds.  In January 2023, they were working with CRU Franchising Company to open a hookah lounge in Midtown Atlanta.  During the due diligence to close the deal, CRU discovered and asked about the Amazon fraud charges against them.  In response, Wortham and Hudson allegedly lied to CRU, claiming that their Amazon-related criminal charges were dismissed.  The two then emailed fraudulent court documents to CRU that purported to show dismissal of the charges and contained forged signatures of Chief U.S. District Judge Timothy C. Batten, Sr. and forged seals and signatures of the Clerk of the Court.  Hudson also allegedly emailed CRU doctored bank statements and personal financial statements that fraudulently inflated the balances in her accounts to support the franchise deal.

Kayricka Wortham, also known as “Kayricka Dupree” and “Kayricka Young,” 32, of Atlanta, Georgia, was sentenced by Chief U.S. District Judge Timothy C. Batten, Sr., to 16 years in prison to be followed by three years of supervised release and ordered to pay restitution to Amazon in the amount of $9,469,731.45.  More than $2.7 million in fraudulent proceeds seized from multiple bank accounts, the residence in Smyrna, and the vehicles purchased with fraudulent proceeds were forfeited.  Wortham was convicted of the Amazon fraud charges on November 30, 2022, after she pleaded guilty.  She has been indicted for defrauding CRU and forging the signature of a federal judge and seal of the Court. Those charges remain pending.

On June 20, 2023, a federal grand jury indicted Brittany Hudson, 37, of Atlanta, Georgia, and Jamar L. James, Sr., 47, of Calera, Alabama, for conspiracy, wire fraud, and money laundering, and Hudson for forging the signature of a federal judge and seal of the Court.  Darrel J. Burgo, 32, of Lawrenceville, Georgia, was charged in the same indictment with conspiracy, access device fraud, and aggravated identity theft.  These charges are pending.

For their roles in the scheme, on November 30, 2022, Demetrius Hines pleaded guilty to wire fraud conspiracy; on June 27, 2023, Laquettia Blanchard pleaded guilty to wire fraud conspiracy; and on June 27, 2023, JaQuan Frazier pleaded guilty to misprision of a felony.  Judge Batten will sentence these three defendants at a later date.

This case is being investigated by the U.S. Secret Service.

Assistant U.S. Attorneys Stephen H. McClain and Norman L. Barnett are prosecuting the cases.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

The U.S. Attorney’s Office for the Northern District of Georgia partnered with the Chamblee Police Department to host the first of a series of community forums designed to educate the public about hate crimes and other civil rights enforcement tools to address hate crimes, hate incidents, and discrimination.  

“Our most recent United Against Hate Summit was one of many ways our office seeks to combat hate crimes and incidents in our district,” said U.S. Attorney Ryan K. Buchanan.  “We were honored to be joined by leaders from our community who work tirelessly to address hate incidents and discrimination who attended the summit and served as guest speakers.  Like the summit participants, we encourage all citizens in our district to take a stand on hate and report these types of incidents to our office.”

The event, held on June 21, 2023, in Chamblee, Georgia, featured facilitated discussions with several members of the community including:

• Georgia State Representative Esther Panitch, who spoke about her experience as a Jewish woman who received antisemitic fliers at her home and her decision to report the incident. 
• Japjee Singh, a young Sikh man who was harassed in school based on his religion and national origin. Following a complaint about the harassment from Singh’s Family and the Sikh Coalition, the U.S. Attorney’s Office and the Department of Justice reached a comprehensive agreement with DeKalb County School District that included, among other things, anti-harassment training and a safety plan to ensure Singh’s safety in the school. 
• Brandon White, a gay man who spoke about being beaten and called slurs outside an Atlanta convenience store in 2012.  His case resulted in criminal prosecution of his attackers by the U.S. Attorney’s Office and was one of the first successful prosecutions under the federal hate crimes statute based on sexual orientation. 
• Gerald Bostock, one of the named plaintiffs in the landmark U.S. Supreme Court decision in Bostock v. Clayton County who spoke about his experience as a gay man who was fired based on his sexual orientation. 

Presenters provided interactive video clips and engaged with the community to emphasize the importance of reporting hate crimes and incidents. 

Members of the community also heard from community organizations including Disability Link, Georgia Equality, NAACP, ADL, Georgia Consumer Mental Health Network, and Raksha.  These grass roots organizations discussed alternatives to DOJ enforcement by highlighting the work they do daily to combat discrimination and hate incidents.

The U.S. Attorney’s Office will host additional United Against Hate events in the coming months to engage with communities across the Northern District of Georgia.  These events will encourage further collaboration, support hate crime prevention efforts, and encourage more citizens of our district to report hate crimes and acts. 

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

 

CORRECTION:  Please note that Raksha was spelled incorrectly in this release.  That has been corrected in the body of this release. 

ATLANTA – Jose Fernandez has been sentenced for seeking over $5 million by submitting fraudulent Paycheck Protection Program (“PPP”) applications, filing false tax returns using stolen identities, using credit cards he obtained with stolen identities, and check fraud. He ultimately obtained more than $2 million in fraudulent funds, which he then used for his personal benefit.

“Fernandez committed a litany of frauds, including an attempt to steal millions of dollars from a COVID relief program, financial institutions, and the IRS by stealing the identities of innocent victims to file false tax returns,” said U.S. Attorney Ryan K. Buchanan. “His sentence reflects the scope of his criminal conduct.”

“Fernandez will have many years in prison to think about his long list of crimes and greed.  He not only hurt business owners in need of the Covid relief funding, but even stole the identities of family members,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “With our law enforcement partners, we will continue to identify and hold accountable anyone who violates the law to siphon money from these programs into their own pockets.”

“People who commit PPP fraud and identity theft can expect to be held accountable just as Jose Fernandez has,” said Lisa Fontanette, acting Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “We will continue working with our law enforcement partners to bring to justice individuals who commit these types of crimes that financially harm honest law-abiding citizens and defrauds the U.S. Government.”

“This sentencing holds the defendant in this case accountable for seeking to fraudulently obtain millions of dollars from the Paycheck Protection Program, the IRS, and our Nation’s financial institutions,” said Special Agent in Charge Kyle A. Myles of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG).  “The FDIC OIG remains committed to working with our law enforcement partners to investigate financial crimes and bringing to justice those who threaten to undermine the integrity our Nation’s financial system.”

“The Treasury Inspector General for Tax Administration aggressively pursues those who endeavor to defraud taxpayer-funded Coronavirus Aid, Relief, and Economic Security Act programs, which were established to provide assistance to American business owners during unprecedented times,” stated Inspector General J. Russell George.  “We appreciate the efforts of the U.S. Department of Justice and our law enforcement partners in ensuring individuals engaged in criminal activity are held to account.” 

According to U.S. Attorney Buchanan, the charges and other information presented in court: The Coronavirus Aid, Relief, and Economic Security Act (“CARES”) is a federal law enacted on March 29, 2020.  It is designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding. Additional funding was authorized by Congress in December 2020. The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities.  The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within eight weeks of receipt and use at least 75 percent of the forgiven amount for payroll.

Fernandez operated multiple small businesses in the metro-Atlanta area from at least as early as 2016 through 2020. Fernandez submitted multiple PPP applications on behalf of several companies controlled by him or his associates that contained materially false information about the companies’ total number of employees, corporate expenses, and revenue. As a result of these false applications, he received over $1.6 million in fraudulent PPP funds. He then used these fraudulently obtained funds to make unauthorized expenditures, including purchases of a home, automobiles, and additional personal items.

Fernandez, who operated a tax preparation business for several years, also stole thousands of identities of his own clients, and of other individuals from a medical supply company, to file false tax returns claiming over $2 million in fraudulent refunds. The IRS was able to stop the vast majority of these funds from being issued to Fernandez.

In addition, Fernandez committed fraud against financial institutions. He obtained fraudulent credit cards in the names of family members and identity theft victims, which he then used to make hundreds of thousands of dollars in fraudulent purchases. Finally, Fernandez obtained blank check stock that was to be used to print tax refund checks for his tax preparation business clients.  He used those checks to attempt to fraudulently write more than $900,000 worth of checks to businesses under his control and to pay personal expenses and debt.

Jose Fernandez, 36, of Winter Haven, Florida, has been sentenced to five years and ten months in prison to be followed by three years of supervised release.  Fernandez was charged in a five-count criminal information on January 25, 2023, and pleaded guilty.

This case was investigated by the Federal Bureau of Investigation, Internal Revenue Service Criminal Investigation, the Federal Deposit Insurance Corporation Office of Inspector General, and the Treasury Inspector General for Tax Administration. Also, the Gwinnett County Police Department provided substantial assistance in this investigation.

Assistant U.S. Attorneys Thomas J. Krepp and Tracia M. King prosecuted the case.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA - Antonio Milner has been arraigned on federal charges of distributing fentanyl resulting in the death of another.  Milner allegedly distributed fentanyl to a person who was found dead in a vehicle alongside I-75.

“Fentanyl is an extraordinarily dangerous substance and even the smallest quantity can be lethal,” said U.S. Attorney Ryan K. Buchanan.  “The Department of Justice is committed to prosecuting these cases to combat this scourge plaguing our communities.”

“Fentanyl poisonings and other dangerous drugs are taking a terrible toll on our communities.” said Robert J. Murphy, Special Agent in Charge of the Drug Enforcement Administration (DEA) Atlanta Division.  “This drug trafficker will face the consequences of his actions.”

According to U.S. Attorney Buchanan, the charges, and other information presented in court: On December 13, 2022, at approximately 8:00 a.m., the Stockbridge Police Department responded to a request for a welfare check at I-75 Southbound at mile marker 224. Upon arrival, officers located the victim deceased in the driver’s seat of a vehicle. The victim’s cause of death was determined to be fentanyl and morphine toxicity. The DEA traced the victim’s steps and established that Milner had allegedly distributed fentanyl to the victim just prior to her death.

Antonio Milner, 48, of Atlanta, Georgia, was arraigned before U.S. Magistrate Judge Justin S. Anand. Milner was indicted by a federal grand jury on June 27, 2023.  Members of the public are reminded that the indictment only contains charges.  The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.

This case is being investigated by the Drug Enforcement Administration.

Assistant U.S. Attorney Amy M. Palumbo is prosecuting the case.

The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA - Justin Newkirk has been arraigned on federal charges of using excessive force against an inmate at the U.S. Penitentiary in Atlanta (“USP-Atlanta”) and for writing a false incident report to justify his use of force.

“Correctional officers perform a particularly challenging and critical job in maintaining order and protecting inmates in our nation’s prisons and jails,” said U.S. Attorney Ryan K. Buchanan. “But this officer’s alleged misconduct of abusing an inmate and then writing a detailed false report to conceal the crime demands accountability.”

“Newkirk allegedly used excessive force and then lied to try to cover up his conduct. The Department of Justice Office of the Inspector General is committed to holding accountable those that abuse their power,” said James F. Boyersmith, Special Agent in Charge of the Department of Justice Office of the Inspector General Miami Field Office.

According to U.S. Attorney Buchanan, the charges, and other information presented in court: At the time of the alleged misconduct, Justin Newkirk was employed as a correctional officer at USP-Atlanta. On March 17, 2022, Newkirk allegedly sprayed an inmate with pepper spray repeatedly without any legal justification. Following the assault, Newkirk also allegedly wrote a report in which he falsely claimed that it was necessary for him to use pepper spray after the inmate lunged at him with a closed fist “showing imminent signs of violence.”

Justin Newkirk, 35, of Locust Grove, Georgia, was arraigned before U.S. Magistrate Judge Russell G. Vineyard.  Newkirk was indicted by a federal grand jury on June 13, 2023.  Members of the public are reminded that the indictment contains only charges.  The defendant is presumed innocent of the charges, and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.

This case is being investigated by the Department of Justice’s Office of Inspector General.

Assistant U.S. Attorneys Bret R. Hobson and Brent Alan Gray are prosecuting the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA - CRH Healthcare, LLC and Peachtree Immediate Care FP, LLC agreed to pay $1,600,000 to resolve allegations that they violated the False Claims Act (FCA) by submitting improperly upcoded Evaluation and Management claims to Medicare for the testing and treatment of patients with suspected exposure to COVID-19 during the Coronavirus pandemic.

“Health care professionals provided an invaluable service to the public during the Coronavirus pandemic. But medical practices that seek to misrepresent the services they provide to patients, and to improperly profit from such practices, must be held accountable,” said U.S. Attorney Ryan K. Buchanan. “The Department of Justice will work diligently to protect taxpayer dollars by ensuring that medical providers fairly and accurately bill federal health care programs.”

"When providers submit improper claims to Medicare, they waste valuable taxpayer dollars," said Tamala E. Miles, Special Agent in Charge with the Department of Health and Human Services, Office of Inspector General (HHS-OIG). "Health care providers played a critical role in keeping our nation safe during the COVID-19 pandemic, and HHS-OIG is committed to protecting federal health care programs from fraud, waste, and abuse to ensure they can be used for their intended purposes."

“The FBI is thankful for the honesty of the whistleblowers who stepped forward to identify this alleged fraud,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI and our law enforcement partners will continue to pursue reports of medical facilities filing false or misleading claims, choices that ultimately rob our citizens.”

The FCA is a federal law that imposes civil liability on any persons or entities who submit, or cause to be submitted, false claims for payment to the federal government or its contractors. It imposes treble damages (that is, three times the loss caused by the false claims) and a civil penalty between $13,508 to $27,018 per false claim. The FCA is the primary authority used by the Civil Division of the U.S. Attorney’s Office to redress fraud, waste, and abuse within federal programs, including Medicare.

This civil settlement resolves lawsuits filed in the U.S. District Court for the Northern District of Georgia by former employees of CRH Healthcare, LLC, under the qui tam, or whistleblower provisions, of the FCA. Under the FCA, private citizens may bring suit for false claims on behalf of the United States and share in any recovery obtained by the government. The whistleblowers will share in $320,000 from the settlement in this matter. 

This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General and the Federal Bureau of Investigation.

The civil settlement was reached by Assistant U.S. Attorney Andres H. Sandoval.  The claims resolved by the settlement are allegations only, and there has been no determination of liability.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ROME, Ga. – A federal jury found alternative medicine physician Charles C. Adams, M.D. and his practice group, Charles C. Adams, M.D., P.C. d/b/a Full Circle Medical Center (“Full Circle”), liable for violating the False Claims Act (“FCA”) by submitting false diagnoses to Medicare for chelation therapy reimbursements.  Chelation therapy involves the use of drugs to remove heavy metals from the body. 

“Healthcare providers who submit false claims to Medicare deplete the funds available to patients in critical need of covered medical procedures,” said U.S. Attorney Ryan K. Buchanan. “On behalf of those healthcare providers who faithfully bill for medical procedures, and for their patients who rely on the safety net of Medicare, our office will continue to work vigorously with our federal agencies and law enforcement partners to pursue providers who engage in misconduct.”

“When providers submit false claims to Medicare, they take valuable, taxpayer-funded resources away from patients,” said Tamala E. Miles, Special Agent in Charge at the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG is proud to work with our partners to hold accountable those who attempt to illegitimately profit off of federal health care programs.”

“Federal Medicare funds are much needed but limited.  When those funds are diverted by fraudulent means, people suffer,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI will continue to work with our law enforcement partners to ensure these programs are not abused.”

According to U.S. Attorney Buchanan, the civil complaint, and other information presented in court: Adams and Full Circle operated a medical practice in Ringgold, Georgia. As a part of his internal medicine specialty, Adams used edetate calcium disodium (“EDTA”) to address a wide range of conditions, including atherosclerosis, high blood pressure, headaches, GI ailments, fatigue, and other generalized symptoms.  But because EDTA is a procedure only recognized by the Federal Drug Administration to treat lead poisoning and lead encephalopathy, Medicare did not cover the use of EDTA for these non-indicated symptoms. As a result, to receive payment for the procedures Dr. Adams falsely claimed to Medicare that his patients suffered from heavy metal poisoning.

In response, on August 27, 2018, the Government filed a civil complaint alleging that between November 2008 and September 2015, Adams and Full Circle engaged in a scheme involving the knowing submission of false claims to Medicare for medically unnecessary and “alternative” chelation therapy that Adams administered using EDTA. The complaint also alleged that in connection with this scheme, Adams and Full Circle unlawfully received approximately $1.1 million in Medicare reimbursements.

Charles C. Adams’s case proceeded to a jury trial in Rome, Georgia, on June 5, 2023, before presiding U.S. District Judge William M. Ray, II. On June 14, 2023, the jury found Adams and Full Circle liable for submitting more than 4,400 false claims to Medicare. The jury awarded more than $1.1 million in damages.  These damages will be trebled under the FCA, which also requires a civil penalty to be imposed for each claim before the final verdict is entered. The exact amount of the judgment will not be known until the Court decides post-trial motions.

The FCA is the primary authority used by the Civil Division of the U.S. Attorney’s Office to redress fraud, waste, and abuse within federal programs, including Medicare.

This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General and the Federal Bureau of Investigation.

The case is being litigated by Assistant U.S. Attorneys Anthony DeCinque and Akash Desai.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

VitalAxis Inc., a Maryland-based billing company for diagnostic laboratories, has agreed to pay $300,479.58 to resolve False Claims Act allegations that it caused the submission of false claims to Medicare for medically unnecessary respiratory pathogen panels run on seniors who received COVID-19 tests.

Throughout 2020, VitalAxis performed billing services for a diagnostic laboratory in Atlanta, Georgia that provided COVID-19 testing to residents of senior living communities. For one chain of communities, the laboratory directed VitalAxis to bill Medicare for respiratory pathogen panels purportedly ordered by a physician who had not actually ordered the tests and who was ineligible to treat Medicare beneficiaries. VitalAxis found the credentials of a different physician and, without authorization, billed Medicare using that physician’s name. Medicare subsequently paid the laboratory for these medically unnecessary tests.

“Federal health care programs only pay for items or services that are reasonable and medically necessary,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s settlement demonstrates our commitment to pursue those who exploited the COVID-19 pandemic by billing the government for wasteful tests that nobody wanted or needed.”

“Unscrupulous companies that exploit the Medicare billing system divert important resources away from the program and abuse patient trust,” said U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia. “This civil resolution confirms that our district is committed to protecting our federal programs from fraud and holding those accountable who knowingly waste taxpayer dollars.”

“When companies bill for medically unnecessary services, they waste valuable taxpayer dollars and undermine the integrity of federal health care programs,” said Special Agent in Charge Tamala Miles with the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “As this settlement illustrates, HHS-OIG is committed to protecting the interests of the American taxpayer and holding health care providers accountable should they attempt to exploit the Medicare program.”

VitalAxis received a credit in connection with the settlement announced today in recognition of their cooperation, including by performing and disclosing the results of an internal investigation, disclosing relevant facts and material not known to the government but relevant to its investigation, providing information relevant to potential misconduct by other individuals and entities, and admitting liability.

The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Northern District of Georgia, with assistance from the Department of Health and Human Services, Office of the Inspector General.

This matter was handled by Deputy Director Paul R. Perkins of the Civil Division, Commercial Litigation Branch, Fraud Section, and Assistant U.S. Attorney Mellori Lumpkin-Dawson and Civil Investigator Alena Evans of the U.S. Attorney’s Office for the Northern District of Georgia.

The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international actors committing civil and criminal fraud and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit www.justice.gov/coronavirus.

Tips and complaints from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division’s Fraud Section, which can be found here. Anyone with information about allegations of attempted fraud involving COVID-19 can also report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

The claims resolved by the settlement are allegations only, and there has been no determination of liability.

ATLANTA - Harrescia Hopkins has been sentenced to five months in prison for fraudulently obtaining two Paycheck Protection Program loans while employed as a correctional officer by the Federal Bureau of Prisons. Hopkins obtained the loans in the name of a business that did not exist and used the money on a cruise and other vacations, as well as restaurants and a new SUV.

“While employed in a position of trust, Hopkins lied to steal emergency money intended for businesses suffering during the COVID-19 pandemic,” said U.S. Attorney Ryan K. Buchanan. “We will vigorously prosecute people who exploited these programs particularly when such fraud is committed by government employees and officials.”

“Hopkins’s fraud scheme took money earmarked for those who were legitimately struggling to make ends meet during the height of the COVID-19 pandemic, and she greedily used those funds for personal entertainment and luxury purchases. This sentencing should send a clear message to fraudsters everywhere: you will be brought to justice,” said James F. Boyersmith, Special Agent in Charge of the Department of Justice Office of the Inspector General Miami Field Office.

“OIG will identify and bring to justice wrongdoers who sought personal gain by theft of taxpayers’ funds,” said SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite. “I want to thank the U.S. Department of Justice and our law enforcement partners for their dedication and pursuit of justice.”

According to U.S. Attorney Buchanan, the charges and other information presented in court: The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was a federal law enacted in or about March 2020 that was designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. One source of relief that the CARES Act provided was the authorization of up to $349 billion in forgivable loans to small businesses for payroll, mortgage interest, rent/lease, and utilities through a program referred to as the Paycheck Protection Program (“PPP”). Congress has since authorized additional PPP funding.

Hopkins, while a Federal Bureau of Prisons correctional officer, applied for two PPP loans for $19,100 each in August 2020 and January 2021. The PPP loan applications were purportedly to help a business named Hopkins Towing and Storage, which she claimed had a gross income of $100,525 in 2019. In reality, Hopkins Towing and Storage was not a real and functioning business. Hopkins also obtained a $4,000 loan from the United States Small Business Administration’s COVID-19 Economic Injury Disaster Loan program.

Hopkins caused the loan proceeds to be deposited into her personal checking account. Hopkins then spent the money on personal expenses – including a Caribbean cruise and other travel, a new Chevrolet Blazer, landscaping for her house, restaurant meals, and retail goods.

Harrescia Hopkins, 34, of Conley, Georgia, was sentenced on June 8, 2023, by U.S. District Judge Sarah E. Geraghty to five months in prison to be followed by two years of supervised release. As part of her sentence, Hopkins was ordered to repay all three loans in full in the amount of $46,004.04. Hopkins pleaded guilty to wire fraud on December 20, 2022.

This case was investigated by the Department of Justice’s Office of Inspector General, and the Small Business Administration’s Office of Inspector General.

Assistant U.S. Attorney Garrett L. Bradford, Chief of the Public Integrity & Civil Rights Section, prosecuted the case.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA - Ashford Richardson has been sentenced to two and a half additional years in prison for fraudulently obtaining a Paycheck Protection Program (“PPP”) loan and Economic Injury Disaster Loan (“EIDL”) shortly after being released from prison on federal drug trafficking charges. He was on supervised release and subject to monitoring by the U.S. Probation Office when he committed these new crimes.

“Richardson had been released from prison for only 10 months when he orchestrated a scheme to steal more than $50,000 of pandemic relief funds that were badly needed by small businesses to continue functioning and support their employees,” said U.S. Attorney Ryan K. Buchanan. “We will continue to utilize all the tools at our disposal to identify and hold accountable individuals who commit fraud.”

“Richardson has not learned the lesson that crime doesn’t pay, and his latest crime is evidence of that. Fortunately, his scheme to steal money intended to help people struggling during the COVID pandemic was caught and he is facing justice,” said Acting Special Agent in Charge Travis Pickard, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “This isn’t a victimless crime, every time a fraudster like this stole money, legitimate applicants were unable to get those funds to help themselves and their families.”

According to U.S. Attorney Buchanan, the charges and other information presented in court: In July 2013, Richardson was indicted by a federal grand jury for conspiring to distribute multiple kilograms of cocaine. After pleading guilty, he was sentenced to five years and three months in prison to be followed by four years of supervised release. In October 2019, he was released from Bureau of Prisons custody and began his term of supervised release.

In June 2020, Richardson applied for $43,400 from the EIDL program and, the following month, applied for a PPP loan of $14,635. In the applications, he claimed he owned a painting and carpentry business that had over $85,000 in revenue in 2019 but had lost more than $60,000 due to the COVID-19 disaster. Richardson also submitted a 2019 corporate tax return document to support the claimed revenue. However, those figures were false, and the tax return document was fake. The applications were ultimately approved due to his fraud, and Richardson immediately withdrew the funds in cash from his bank account. When he learned that the government was investigating him for these new crimes, he submitted more falsified documents in an effort to further conceal his crimes.

Ashford Leon Richardson, 44, of East Point, Georgia, admitted violating his terms of supervised release and committing wire fraud on June 13, 2023, and was sentenced by Senior U.S. District Judge Richard W. Story to two years and six months in prison to be followed by one additional year of supervised release. He was also ordered to repay $58,489.99 to the U.S. Small Business Administration.

This case is being investigated by Homeland Security Investigations.

Assistant U.S. Attorneys Garrett L. Bradford and Sarah E. Klapman are prosecuting the case.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA - Oluwagbemiga Otufale has been sentenced for money laundering conspiracy involving fraudulent proceeds of multiple fraud schemes. 

“Otufale attempted to take advantage of our country during a time of unprecedented crisis for the most vulnerable in our society,” said U.S. Attorney Ryan K. Buchanan. “Our office is committed to work tirelessly with our law enforcement partners to identify and prosecute individuals involved in COVID-19 relief fraud and those who launder the proceeds of that criminal activity.”

“So many individuals needed federal emergency assistance to stay afloat during the pandemic, and Otufale laundered millions of dollars of that assistance money, allowing fraudsters to enjoy their ill-gotten gains and lining his own pockets,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “His greed affects every American taxpayer, and the FBI will continue to hold accountable those who abused tax payer dollars and diverted them from citizens who desperately needed them.”  

“Oluwagbemiga Otufale used fraudulent passports and other identity documents to open numerous bank accounts in the names of various shell companies. Otufale used the accounts to launder more than $2.6 million in illicit funds. Most of the laundered funds were the proceeds of fraudulent unemployment claims that were filed in multiple states, including Illinois, Massachusetts, and Washington. These fraudulent claims were filed using the personal identifiable information of unwitting individuals. We will continue to work with our law enforcement partners to safeguard the unemployment insurance system from those who seek to exploit the system,” said Mathew Broadhurst, Special Agent-in-Charge, Southeast Region, U.S. Department of Labor, Office of Inspector General.

According to U.S. Attorney Buchanan, the charges and other information presented in court: The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act created a temporary federal program that provided up to 39 weeks of unemployment benefits for those unemployed as a result of the pandemic and included a provision to provide temporary benefits to individuals who had exhausted their entitlement to regular benefits or were otherwise not eligible.  That temporary federal program was administered by state employment agencies. 

Otufale laundered money procured from fraudulent unemployment claims submitted to numerous state employment agencies, including those in the states of Washington, Illinois, and Massachusetts.  These claims were filed using stolen personally identifiable information of more than 50 individuals. Otufale also laundered proceeds from a business email compromise scheme targeting two Georgia businesses. 

Otufale created multiple aliases and sham business entities to open financial accounts in which he deposited the fraudulent proceeds and withdrew cash.  In total, Otufale laundered approximately $2.6 million in fraud proceeds through at least six bank accounts.

Oluwagbemiga Otufale, also known as “Joseph Perrone,” “Kelvin Benjamin,” and “Abraham Young,” 45, of Atlanta, Georgia, was sentenced by U.S. District Judge Leigh Martin May to seven years in prison to be followed by three years of supervised release and ordered to pay restitution in the amount of $498,450.  Otufale was convicted of the charge of money laundering conspiracy on December 7, 2022, after he pleaded guilty.

This case was investigated by the Federal Bureau of Investigation and U.S. Department of Labor, Office of Inspector General.

Assistant U.S. Attorneys Sarah E. Klapman and Tracia King prosecuted the case.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud.  The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts.  For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA - Two Georgia Department of Corrections inmates, Carmelo Reyes-Lozano and Bautista Toledo-Ramirez, have been sentenced to federal prison for their roles in trafficking large quantities of methamphetamine. 

“Keeping our citizens safe by combatting illegal distribution of dangerous drugs within and outside prisons is a top priority of this office,” said U.S. Attorney Ryan K. Buchanan. “These defendants and their 12 conspirators trafficked a staggering amount of illegal narcotics. Their prison sentences reflect the seriousness of their conduct and the grave danger posed to communities impacted by their drug trafficking.” 

“Regardless of how sophisticated these criminal organizations think they are, they’re no match for the professionalism and dedication of the DEA,” said Robert J. Murphy, the Special Agent in Charge of the Atlanta Field Division. “This case brought 14 people to justice and cut off a significant supply chain for methamphetamine.”  

According to U.S. Attorney Buchanan, the charges and other information presented in court: During a federal wiretap investigation in the summer of 2019, the Drug Enforcement Administration (DEA) intercepted several inmates in Dooley State Prison and Washington State Prison using contraband cell phones to discuss narcotics deals. In response, the DEA in February through April 2020, extended the investigation and discovered that Carmelo Reyes-Lozano and Bautista Toledo-Ramirez served as leaders of a drug trafficking organization and were directing a series of drug transactions in the Atlanta area from their prison cells.

On February 15, 2020, agents intercepted communications between Reyes-Lozano and co-defendant Luis Carlos Vite-Garcia discussing a large drug shipment that arrived in the Atlanta area. Federal agents were then able to identify an address in Rex, Georgia being used as a “stash house” for narcotics. Agents searched the stash house pursuant to a warrant and discovered approximately 588 kilograms of methamphetamine (crystal and powder form), approximately 100 gallons of liquid methamphetamine in the process of being converted to a crystal form, a drug ledger, and a Mossberg 500 shotgun. Investigators saw siblings Hector Hugo Miranda-Fernandez (“Miranda”) and Jessie Miranda-Fernandez (“Fernandez”), who conspired with Reyes-Lozano and Toledo-Ramirez, at the residence and arrested Fernandez later that evening.

The next day, agents intercepted a conversation between Reyes-Lozano and Miranda, during which Miranda stated that he was fleeing to Mexico due to the DEA’s discovery of the stash house and his brother’s arrest. On February 20, 2020, agents learned that Miranda was in Texas and traveling to the border. That afternoon, officers with the Encinal Police Department in Texas located and arrested Miranda.

On February 28, 2020, the DEA intercepted another set of communications, this time between Toledo-Ramirez and co-defendant Delshawn Morrow. During the calls, the men discussed plans to smuggle methamphetamine into Washington State Prison. Utilizing intel from these intercepts, investigators arrested co-defendant Bertha Daniels the following day as she entered the prison with approximately 180 grams of methamphetamine hidden on her person. The investigation revealed a video recording of co-defendant Jhojana Pujol delivering the drugs to Daniels in a motel parking lot near the prison on behalf of Toledo-Ramirez.

On March 23, 2020, the DEA intercepted additional communications indicating that Toledo-Ramirez and Reyes-Lozano were coordinating a multi-kilogram methamphetamine deal with co-defendant Jason Lloyd Barnum using co-defendant Jean Pierre as an intermediary. Investigators learned that Pierre was a prolific marijuana trafficker who had supplied several of Toledo-Ramirez’s customers in the past. The following day, co-defendants Vite-Garcia, Carlos Andres-Vite, and Ramon Mora-Montalvo delivered approximately four kilograms of methamphetamine to Barnum. The drugs had been stored at Vite-Garcia’s stash house in Lawrenceville, Georgia. Barnum was arrested with those drugs after he traveled from Florida to the Atlanta area in a vehicle that Pierre owned. 

On March 30, 2020, DEA agents intercepted more telephonic communications in which co-defendant Lourdes Ayala-Cruz called Reyes-Lozano to coordinate the purchase of a kilogram of methamphetamine for co-defendant Jose Paralta-Sanchez. Ayala-Cruz and Paralta-Sanchez drove from North Carolina to the Atlanta area to complete the deal. The transaction occurred on April 1, 2020, in the parking lot of a hardware store in Atlanta, and the drugs were delivered to Paralta-Sanchez by Mora-Montalvo. The Gaston County, North Carolina, Police Department arrested Ayala-Cruz with the drugs as she drove back to her home in North Carolina.

On April 6, 2020, investigators arrested Vite-Garcia, Andres-Vite, and Mora-Montalvo en route from Decatur, Georgia to the stash house in Lawrenceville with approximately 10 kilograms of methamphetamine. The DEA searched the Lawrenceville residence that day pursuant to a warrant. During the search, federal agents seized more methamphetamine, approximately two kilograms of heroin, a digital scale, two firearms, and over $22,000 in U.S. currency. 

For his role in the conspiracy, Reyes-Lozano, 34, of Jalisco, Mexico, received a sentence imposed by U.S. District Judge Steven D. Grimberg of 17 years, six months in prison, followed by 10 years of supervised release. Reyes-Lozano was convicted on October 19, 2021, after he pleaded guilty.

Bautista-Toledo, 42, of Michoacán, Mexico, received a sentence of 23 years in prison, followed by 12 years of supervised release. Bautista-Toledo was convicted on August 10, 2022, after pleading guilty just days before his trial was set to begin. Reyes-Lozano’s and Bautista-Toledo’s federal sentences will run consecutive to the state prison sentences the men are already serving.

The defendants’ 12 conspirators previously entered guilty pleas for their roles in the drug trafficking conspiracy and received the following sentences imposed by Judge Grimberg:

• Hector Hugo Miranda-Fernandez, 36, of Jalisco, Mexico, was sentenced to eleven years and one month in prison, followed by five years of supervised release.

• Jessie Miranda-Fernandez, 23, of Atlanta, Georgia, was sentenced to four years and nine months in prison, followed by five years of supervised release.

• Luis Carlos Vite-Garcia, 39, of Reynoso, Mexico, was sentenced to 15 years and eight months in prison, followed by 10 years of supervised release.

• Ramon Mora-Montalvo, 29, of Reynoso, Mexico, was sentenced to three years and five months in prison, followed by five years of supervised release.

• Carlos Andres-Vite, 23, of Reynoso, Mexico, was sentenced to three years and 10 months in prison, followed by five years of supervised release.

• Jhojana Pujol, 26, of Boston, Massachusetts, was sentenced to time served in prison, followed by five years of supervised release.

• Delshawn Morrow, 45, of Thomasville, Georgia, was sentenced to 14 years in prison to run consecutive to any sentence he is currently serving, followed by four years of supervised release.

• Bertha Mae-Daniels, 47, of Thomasville, Georgia, was sentenced to 12 months and one day in prison, followed by five years of supervised release.

• Jason Lloyd Barnum, 42, of Irvington, New Jersey, was sentenced to 10 years and one month in prison, followed by five years of supervised release.

• Jose Paralta-Sanchez, 53, of Michoacán, Mexico, was sentenced to five years and 10 months in prison, followed by five years of supervised release.

• Lourdes Suyapa Ayala-Cruz, 44, of Choloma Cortez, Honduras, was sentenced to three years and one month in prison, followed by five years of supervised release.

• Jean Pierre, 46, of Irvington, New Jersey, was sentenced to three years and one month in prison, followed by five years of supervised release.

This case was investigated by the Drug Enforcement Administration, with assistance from the Georgia State Patrol, Gaston County, North Carolina, Police Department and Encinal, Texas, Police Department.

Assistant U.S. Attorneys Rebeca M. Ojeda and C. Brock Brockington, and former Assistant U.S. Attorneys Miguel R. Acosta and Scott McAfee, prosecuted the case.

This effort was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA – More than three dozen individuals have been sentenced for their involvement in a large-scale fraud and money laundering operation that targeted individuals, corporations, and financial institutions throughout the United States. The defendants used business email compromise schemes, romance fraud scams, and retirement account scams, among other frauds, to steal more than $30 million from numerous victims. 

“The Department of Justice has tirelessly worked for more than four years to obtain justice for dozens of victims impacted by this brazen criminal organization,” said U.S. Attorney Ryan K. Buchanan.  “The defendants’ sentences should serve as a stark warning to others that fraud and money laundering crimes are top priorities for this office and our federal, state, and local law enforcement partners.”

“Several members of this conspiracy fraudulently obtained funds from ERISA-covered employee benefit plans. The funds, which originated from unwitting individuals’ retirement accounts, were deposited into personal and business bank accounts that were created in furtherance of this money-laundering conspiracy. The greed of the conspirators caused workers and prospective retirees to lose significant portions of their hard-earned retirement funds. We will continue to work with our law enforcement partners and the U.S. Department of Labor’s Employee Benefits Security Administration to protect the integrity of employee benefit plans,” said Mathew Broadhurst, Special Agent-in-Charge, Southeast Region, U.S. Department of Labor, Office of Inspector General.

“These fraud scams, although not violent, are not victimless and can be devastating to businesses and individuals who fall prey to them,” said Keri Fairly, Special Agent in Charge of FBI Atlanta. “The sentencing of all these individuals shows the FBI’s dedication to working with our partners to hold anyone accountable who would steal from hard working and honest individuals, rather than put in the work themselves.”

“These scammers defrauded individuals and companies with the sole purpose of enriching themselves,” said Acting Special Agent in Charge Travis Pickard, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI and its law enforcement partners will continue to work tirelessly to protect the integrity of the nation’s financial infrastructure and ensure that financial crimes do not go unpunished.”

“This sentencing illustrates the Secret Service’s dedication to protecting our nation’s financial systems,” said Steven R. Baisel, Special Agent in Charge of the U.S. Secret Service’s Atlanta Field Office. “We are thankful for our law enforcement partners’ commitment and support as we worked together to bring this case to justice.”

According to U.S. Attorney Buchanan, the charges, and other information presented in court: The defendants engaged in multiple fraud and money laundering conspiracies that stole millions of dollars from victims located throughout the United States and abroad. The defendants were charged across several related pending cases.

U.S. District Judge William M. Ray, II, sentenced the following individuals for their respective roles in this criminal scheme:

• Joshua Roberts, also known as “Onyx,” 32, of Houston, Texas, was sentenced to eight years and one month in custody, to be followed by three years of supervised release, and ordered to pay $9,675,739.73 in restitution to victims. He was sentenced on August 10, 2022, after pleading guilty to conspiracy to commit money laundering on March 29, 2022.

• Darius Sowah Okang, also known as “Michael J. Casey,” “Richard Resser,” “Thomas Vaden,” “Michael Lawson,” “Matthew Reddington,” and “Michael Little,” 32, of Stone Mountain, Georgia, was sentenced to seven years and 10 months in custody, to be followed by three years of supervised release, and ordered to pay $6,204,119 in restitution to victims. He was sentenced on March 17, 2022, after pleading guilty to conspiracy to commit money laundering and aggravated identity theft on September 2, 2021.

• George Kodjo Edem Adatsi, 39, of Atlanta, Georgia, was sentenced to five years and 10 months in custody, to be followed by three years of supervised release, and ordered to pay $3,373,797.43 in restitution to victims. He was sentenced on July 21, 2021, after pleading guilty to conspiracy to commit money laundering on April 7, 2021.

• Benjamin Ibukunoluwa Oye, 29, of Sandy Springs, Georgia, was sentenced to five years in custody, to be followed by three years of supervised release, and ordered to pay $1,163,127.01 in restitution to victims. He was sentenced on March 21, 2023, after pleading guilty to conspiracy to commit bank fraud, aggravated identity theft, conspiracy to commit money laundering, and money laundering on March 4, 2020.

• Prince Sheriff Okai, 29, of Mableton, Georgia, was sentenced to four years and nine months in custody, to be followed by three years of supervised release, and ordered to pay $4,950,586.54 in restitution to victims. He was sentenced on January 12, 2021, after pleading guilty to conspiracy to commit money laundering on October 6, 2020.

• Hamza Abdallah, also known as “Reggie Lewis,” 33, of McDonough, Georgia, was sentenced to four years and nine months in custody, to be followed by three years of supervised release, and ordered to pay $5,051,473.87 in restitution to victims. He was sentenced on February 24, 2021, after pleading guilty to conspiracy to commit money laundering on November 18, 2020.

• Dominique Raquel Golden, also known as “Desire Tamakloe,” “Mellissa Moore,” “Nicole Nolay,” “Raquel Roberts,” “Maria Henderson,” and “Raquel Golden,” 32, of Houston, Texas, was sentenced to four years and six months in custody, to be followed by three years of supervised release, and ordered to pay $7,830,607.05 in restitution to victims. She was sentenced on March 28, 2022, after pleading guilty to conspiracy to commit money laundering on September 30, 2021.

• Kelvin Prince Boateng, 27, of Atlanta, Georgia, was sentenced to three years and 10 months in custody, to be followed by three years of supervised release, and ordered to pay $870,333 in restitution to victims. He was sentenced on June 17, 2021, after pleading guilty to conspiracy to commit money laundering on March 2, 2021.

• Jonathan Kojo Agbemafle, also known as “Skinny,” 29, of Kansas City, Missouri, was sentenced to three years and 10 months in custody, to be followed by three years of supervised release, and ordered to pay $2,637,625.01 in restitution to victims. He was sentenced on August 8, 2022, after pleading guilty to conspiracy to commit money laundering on April 4, 2022.

• Blessing Oluwatimilehin Ojo, also known as “Timmy,” 37, of Nigeria, was sentenced to three years and 10 months in custody, to be followed by three years of supervised release, and ordered to pay $1,711,304 in restitution to victims. He was sentenced on October 26, 2022, after pleading guilty to conspiracy to commit money laundering on July 19, 2022.

• Desire Elorm Tamakloe, also known as “Chubby,” 28, of Smyrna, Georgia, was sentenced to three years and 10 months in custody, to be followed by three years of supervised release, and ordered to pay $1,215,357.81 in restitution to victims. He was sentenced on April 18, 2023, after pleading guilty to conspiracy to commit money laundering on October 13, 2022.

• Stephen Abbu Jenkins, also known as “Face,” “Steven Abbu Jenkins,” “Steven Jenkins,” and “Steve Jenkins,” 56, of Atlanta, Georgia, was sentenced to three years and seven months in custody, to be followed by three years of supervised release, and ordered to pay $726,290 in restitution to victims. He was sentenced on February 22, 2023, after pleading guilty to conspiracy to commit money laundering on August 8, 2022.

• Obinna Nwosu, 29, of Douglasville, Georgia, was sentenced to three years and one month in custody, to be followed by three years of supervised release, and ordered to pay $1,045,065.75 in restitution to victims. He was sentenced on December 16, 2020, after pleading guilty to conspiracy to commit money laundering on September 17, 2020.

• Ojebe Obewu Ojebe, 30, of Atlanta, Georgia, was sentenced to three years and one month in custody, to be followed by three years of supervised release, and ordered to pay $893,879.55 in restitution to victims. He was sentenced on September 27, 2022, after pleading guilty to conspiracy to commit money laundering on June 2, 2022.

• Francesco Benjamin, also known as “B-More,” 33, of Atlanta, Georgia, was sentenced to three years and one month in custody, to be followed by three years of supervised release, and ordered to pay $987,070 in restitution to victims. He was sentenced on March 1, 2023, after pleading guilty to conspiracy to commit money laundering on October 19, 2022.

• Chukwukadibia Ikechukwu Nnadozie, also known as “Chuka” and “Michael McCord,” 30, of Fayetteville, Georgia, was sentenced to three years and one month in custody, to be followed by three years of supervised release, and ordered to pay $231,507.19 in restitution to victims. He was sentenced on May 9, 2023, after pleading guilty to conspiracy to commit money laundering on November 28, 2022.

• Abubakar Sadik Ibrahim, 29, of Mableton, Georgia, was sentenced to three years in custody, to be followed by three years of supervised release, and ordered to pay $1,193,750.27 in restitution to victims. He was sentenced on February 1, 2022, after pleading guilty to conspiracy to commit money laundering on September 27, 2021.

• John Ifeoluwa Onimole, 31, of Powder Springs, Georgia, was sentenced to three years in custody, to be followed by three years of supervised release, and ordered to pay $1,117,966.06 in restitution to victims. He was sentenced on April 25, 2023, after pleading guilty to money laundering on December 7, 2022.

• Chadrick Jamal Rhodes, 31, of Atlanta, Georgia, was sentenced to two years and 11 months in custody, to be followed by three years of supervised release, and ordered to pay $120,000 in restitution to victims. He was sentenced on January 31, 2022, after pleading guilty to conspiracy to commit bank fraud and aggravated identity theft on October 12, 2021.

• Chadwick Osbourne Stewart, 43, of Atlanta, Georgia, was sentenced to two years and eight months in custody, to be followed by three years of supervised release, and ordered to pay $60,000 in restitution to victims. He was sentenced on January 26, 2022, after pleading guilty to conspiracy to commit bank fraud and aggravated identity theft on October 22, 2021.

• Macario Lee Nelson, a/k/a “Mac,” 27, of Atlanta, Georgia, was sentenced to two years and eight months in custody, to be followed by three years of supervised release, and ordered to pay $120,000 in restitution to victims. He was sentenced on February 17, 2022, after pleading guilty to conspiracy to commit bank fraud and aggravated identity theft on September 29, 2021.

• Afeez Olaide Adeniran, a/k/a “Ola,” 34, of Atlanta, Georgia, was sentenced to two years and six months in custody, to be followed by three years of supervised release, and ordered to pay $352,830.25 in restitution to victims. He was sentenced on October 6, 2022, after pleading guilty to conspiracy to commit money laundering on August 18, 2022.

• Kahlia Andrea Siddiqui, 31, of Chamblee, Georgia, was sentenced to two years and six months in custody, to be followed by three years of supervised release, and ordered to pay $325,811 in restitution to victims. She was sentenced on February 22, 2023, after pleading guilty to conspiracy to commit money laundering on August 9, 2022.

• Solomon Agyapong, also known as “Gumpe,” 34, of Marietta, Georgia, was sentenced to two years and six months in custody, to be followed by three years of supervised release, and ordered to pay $496,123.92 in restitution to victims. He was sentenced on April 18, 2023, after pleading guilty to conspiracy to commit money laundering on October 11, 2022.

• Christopher Akinwande Awonuga, 31, of Fayetteville, Georgia, was sentenced to two years and three months in custody, to be followed by three years of supervised release, and ordered to pay $113,276.27 in restitution to victims. He was sentenced on January 8, 2020, after pleading guilty to conspiracy to commit bank fraud on August 22, 2019.

• Emanuela Joe Joseph, 37, of Lawrenceville, Georgia, was sentenced to two years and three months in custody, to be followed by three years of supervised release, and ordered to pay $442,557.08 in restitution to victims. She was sentenced on February 21, 2023, after pleading guilty to conspiracy to commit money laundering on October 26, 2022.

• Seth Appiah Kubi, 63, of Dacula, Georgia, was sentenced to two years in custody, to be followed by one year of supervised release. He was sentenced on July 7, 2020, after pleading guilty to aggravated identity theft on March 4, 2020.

• Oluwafunmilade Onamuti, also known as “Mathew Kelvin,” 29, of Duluth, Georgia, was sentenced to one year and 10 months in custody, to be followed by three years of supervised release, and ordered to pay $167,195 in restitution to victims. He was sentenced on July 21, 2021, after pleading guilty to conspiracy to commit money laundering on April 7, 2021.

• Paul Chinonso Anyanwu, 31, of Hampton, Georgia, was sentenced to one year and six months in custody, to be followed by three years of supervised release, and ordered to pay $57,000 in restitution to victims. He was sentenced on December 19, 2019, after pleading guilty to conspiracy to commit money laundering on September 18, 2019.

• Casey Broderick Williams, 29, of Covington, Georgia, was sentenced to one year and one day in custody, to be followed by three years of supervised release, and ordered to pay $60,000 in restitution to victims. He was sentenced on June 2, 2022, after pleading guilty to conspiracy to commit bank fraud and aggravated identity theft on July 30, 2019.

• Alexus Ciera Johnson, 29, of Mableton, Georgia, was sentenced to one year and one day in custody, to be followed by three years of supervised release, and ordered to pay $106,879 in restitution to victims. She was sentenced on May 22, 2023, after pleading guilty to conspiracy to commit money laundering on October 11, 2022.

• Egale Veonzell Woods, Jr., 44, of East Point, Georgia, was sentenced to one year in custody, to be followed by three years of supervised release, and ordered to pay $165,007.19 in restitution to victims. He was sentenced on April 21, 2021, after pleading guilty to conspiracy to commit money laundering on March 4, 2020.

• Gregory Thomas Hudson, 42, of Powder Springs, Georgia,  was sentenced to 10 months in custody, to be followed by 10 years of supervised release, and ordered to pay $125,291.45 in restitution to victims. He was sentenced on June 27, 2022, after pleading guilty to conspiracy to commit bank fraud on March 14, 2022.

• Uchechi Chidimma Odus, also known as “Uche,” 26, of Atlanta, Georgia, was sentenced to 10 months in custody, to be followed by three years of supervised release, and ordered to pay $83,345.47 in restitution to victims. She was sentenced on May 17, 2023, after pleading guilty to conspiracy to commit money laundering on December 21, 2022.

• Matthan Bolaji Ibidapo, also known as “B.J.,” 30, of Colorado Springs, Colorado, was sentenced to eight months in custody, to be followed by three years of supervised release with a portion to be served in home confinement and ordered to pay $82,490.50 in restitution to victims. He was sentenced on February 21, 2023, after pleading guilty to conspiracy to commit money laundering on November 1, 2022.

• Tyler Keon Roussell, 28, of Atlanta, Georgia, was sentenced to six months in custody, to be followed by six years of supervised release with a portion served in home confinement, and ordered to pay $368,400.49 in restitution to victims. He was sentenced on February 21, 2022, after pleading guilty to conspiracy to commit bank fraud on May 16, 2019.

• Monique Wheeler, 32, of Atlanta, Georgia, was sentenced to three months in custody, to be followed by three years of supervised release with a portion to be served in home confinement, and ordered to pay $71,010 in restitution to victims. She was sentenced on December 2, 2022, after pleading guilty to money laundering on July 13, 2022.

• Chineda Obilom Nwakudu, 28, of McDonough, Georgia, was sentenced to three years of probation with a portion to be served in home confinement and ordered to pay $123,645.85 in restitution to victims. He was sentenced on February 22, 2023, after pleading guilty to conspiracy to commit money laundering on August 23, 2019.

• Ahamefule Aso Odus, 30, of Atlanta, Georgia, was convicted by a jury on January 30, 2023, of conspiracy to commit money laundering and multiple substantive money laundering offenses. His sentencing is pending.

• Motswana Mulongo, also known as “David Mulongo” and “Henry Tipton,” 38, of Decatur, Georgia, was convicted of conspiracy to commit money laundering on March 10, 2023. His sentencing is scheduled for June 22, 2023.

• Oumar Bouyo Mbodj of Kennesaw, Georgia, is deceased, and charges filed against him were dismissed.

This investigation was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) program—the keystone drug, money laundering, and transnational organized crime enforcement program of the Department of Justice. 

This case was investigated by the Department of Labor, Office of Inspector General, Federal Bureau of Investigation, U.S. Secret Service, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. The investigating agencies received considerable support from the Department of Labor, Employee Benefits Security Administration, and numerous federal, state, and local law enforcement authorities.
 

Assistant U.S. Attorneys Kelly K. Connors and Russell Phillips prosecuted the case.

For further information, please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA – James Ellner, M.D., and his Woodstock, Georgia pain management practice, Georgia Pain Management, P.C., and ambulatory surgical center, Samson Pain Center, P.C, agreed to pay $625,000 to resolve allegations that they violated the False Claims Act (FCA) by submitting improper claims to the Medicare and TRICARE programs for evaluation and management services and medically unnecessary urine drug screening tests.

“The federal government expects that physicians and their practices will properly bill Medicare and TRICARE for services they provide,” said U.S. Attorney Ryan K. Buchanan.  “The Department of Justice will work diligently to hold healthcare providers accountable when they break the rules and overbill federal healthcare programs.”

“Health care fraud abuse like this case erodes the trust patients have in the health care system,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Government subsidized programs like Medicare help protect the healthcare needs of deserving Americans and the FBI is determined to work with our partners to prevent people from illegally profiting off of them."

“When providers submit improper claims, they threaten the integrity of taxpayer-funded health care programs and take those valuable resources away from their intended recipients,” said Tamala Miles, Special Agent in Charge at the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG is committed to protecting federal health care programs from fraudulent and wasteful practices at the hands of providers.”

The FCA is a federal law that imposes civil liability on any persons or entities who submit, or cause to be submitted, false claims for payment on the federal government or its contractors. It imposes treble damages (that is, three times the loss caused by the false claims) and a civil penalty between $12,537 to $25,076 per false claim. The FCA is the primary authority used by the Civil Division of the United States Attorney’s Office to redress fraud, waste, and abuse within federal programs, including, but not limited to, Medicare and TRICARE.

The United States alleges that between May 1, 2015, and December 31, 2019, James Ellner and Georgia Pain Management, P.C. (Georgia Pain) submitted false claims to the Medicare and TRICARE programs for evaluation and management (E&M) services that were not reimbursable under federal health care programs.  Medicare generally prohibits healthcare providers from separately billing for E&M services provided on the same day as another medical procedure, unless the E&M services are significant, separately identifiable, and above and beyond the usual preoperative and postoperative care associated with the medical procedure.  If an E&M service satisfies these criteria, the provider can use a billing code known as “Modifier 25” to bill for the significant and separately identifiable E&M services.  In this case, the United States alleges that Georgia Pain used Modifier 25 to improperly unbundle routine E&M services that were not separately billable from other minor surgical procedures performed on the same day; and as a result, Georgia Pain claimed reimbursement from Medicare and TRICARE that it was not due.

The United States also alleges that Ellner and Georgia Pain entered into an arrangement that violated the Anti-Kickback Statute, whereby a reference laboratory paid the salary of an individual who functioned as a free employee of Georgia Pain in exchange for Ellner’s referral of urine drug tests – many of which were medically unnecessary.

The civil settlement resolves a lawsuit filed in the U.S. District Court for the Northern District of Georgia by a former employee for Georgia Pain, under the qui tam, or whistleblower provisions, of the FCA. United States ex rel. Amy Tyson v. Georgia Pain Management, P.C., Samson Pain Center, P.C., and James Ellner, M.D., Civil Action 1:18-cv-5520.  Under the FCA, private citizens may bring suit for false claims on behalf of the United States and share in any recovery obtained by the government.  The whistleblower will receive $118,000 from the settlement. 

The civil settlement was reached by Assistant U.S. Attorney Mellori Lumpkin-Dawson.  The claims resolved by the settlement are allegations only, and there has been no determination of liability. 

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmail@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA - Anthony Maseda and Erik Arreola-Torres have been sentenced for their roles in a scheme to convert semi-automatic firearms into machineguns and sell the fully automatic firearms out of a Clayton County, Georgia, residence.  Arreola-Torres fired at federal special agents and local law enforcement officers using a fully automatic machinegun when the investigators arrived at the home to execute a search warrant. 

“Maseda and Arreola-Torres jeopardized the lives of multiple law enforcement officers and community residents during an investigation by law enforcement officers of the defendants’ machinegun trafficking scheme,” said U.S. Attorney Ryan K. Buchanan. “This office and its law enforcement partners will identify, target, and prosecute those individuals who threaten the safety of our communities by creating and selling automatic firearms.  We commend the work of our dedicated agency partners in this case and are grateful no one was injured during this violent incident.”

“Because of the combined efforts of ATF and its law enforcement partners, criminal elements have been surgically removed from the community of Clayton County and placed where they belong: into the criminal justice system to be processed and prosecuted for illegal gun activity,” said Alisha Jones, Assistant Special Agent in Charge of ATF’s Atlanta Field Division.

“This investigation re-affirms the importance of our agency’s collaboration with our federal partners. The arrests resulting from this joint investigation with the ATF surely saved lives in Clayton County and likely in the metropolitan region. The Clayton County Police Department will continue to partner with our Federal and State law enforcement agencies to reduce violent crimes in our community,” said Clayton County Police Chief Kevin Roberts.

According to U.S. Attorney Buchanan, the charges and other information presented in court: From January through March of 2022, Anthony Maseda and Erik Arreola-Torres conducted a firearm and machinegun trafficking operation out of a home in Jonesboro, Georgia.  Maseda, a previously convicted felon, and leader of the operation, illegally imported auto sear devices, also known as “switches”, from China. Possessing an auto sear is a felony offense under federal law, even when the device is not installed in a firearm.

Using auto sears, Maseda converted numerous firearms into fully automatic machineguns and then advertised the sale of machineguns, auto sears, and semi-automatic firearms on his public Instagram page.  Federal special agents obtained a warrant to search the Jonesboro residence after Maseda and Arreola-Torres sold a machinegun, a semi-automatic firearm, and multiple switches to an undercover informant at the home.

On the morning of March 3, 2022, special agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Clayton County Police Department, executed the search warrant at the Jonesboro house.  As law enforcement officers stood outside the home, Arreola-Torres picked up a machinegun and fired towards agents and officers from inside the residence, unloading dozens of rounds in the investigators’ direction. Fortunately, no one was hit or injured.

After securing the scene and taking Maseda and Arreola-Torres into custody, agents located within the residence six fully automatic machineguns, four additional auto sears, five additional firearms, numerous firearm parts and magazines, ammunition, bullet proof body armor, and distribution quantities of marijuana and digital scales.  One of the firearms had an obliterated serial number.

Erik Arreola-Torres, 20, of Jonesboro, Georgia, was sentenced on May 7, 2023, by U.S. District Judge Steven D. Grimberg to ten years and one month in prison to be followed by three years of supervised release.  He pleaded guilty to possession of a machinegun and conspiracy to engage in the business of dealing in firearms without a license on October 17, 2022. 

Anthony Maseda, 21, of Jonesboro, Georgia, was also sentenced by Judge Grimberg to nine years in prison to be followed by three years of supervised release. He pleaded guilty to possession of a machinegun on October 13, 2022.  

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Clayton County Police Department.

Assistant U.S. Attorney Annalise K. Peters prosecuted the case.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA - James G. Maloney, who served as the Chief Scientist for the Georgia Tech Research Institute (GTRI), has pleaded guilty to conspiring to defraud Georgia Tech and the Central Intelligence Agency (CIA). Maloney’s conspirators, James J. Acree and James D. Fraley, III, pleaded guilty to the same charge in 2016.

“These defendants violated the trust placed in them by Georgia Tech and the CIA in allowing their judgment to be clouded by greed,” said U.S. Attorney Ryan K. Buchanan.  “The seven-year delay in resolving Maloney’s case resulted from Maloney’s ploy to evade criminal liability by threatening to reveal classified information during the course of his trial in a failed attempt to force the government to dismiss the case. But as Maloney discovered, the government will not be bullied or threatened by a criminal defendant.”

“Maloney’s guilty plea should send a clear message to anyone seeking to abuse their positions for personal gain, the FBI will find you and hold you accountable”, said Keri Farley, Special Agent in Charge of FBI Atlanta. “Thanks to our extraordinary partnership with Georgia Tech, even with Maloney’s defense tactics he was unable to avoid the consequences of his crimes. He will now be sentenced with his coconspirators, closing out this lengthy case.”

According to U.S. Attorney Buchanan, the charges, and other information presented in court: From early 2007 through late 2013, Maloney, Acree, and Fraley engaged in a scheme to defraud Georgia Tech and the CIA. They are experts in electromagnetic analysis and measurements and were assigned to GTRI’s Advanced Concepts Laboratory (ACL), where they worked on projects funded by the United States Department of Defense, various intelligence agencies, and private industry.

PCard Fraud

As part of his duties and responsibilities at GTRI, Fraley had access to a Georgia Tech credit card known as a “PCard.” Fraley was supposed to use his PCard only to purchase materials and supplies for official Georgia Tech business. Neither Fraley nor anyone else was allowed to charge personal expenses on a PCard.

Maloney, Acree, and Fraley falsely led GTRI to believe that all of their PCard charges were for official business. In fact, Maloney, Acree, and Fraley charged approximately $200,000 in personal expenses on Fraley’s PCard, including, two four-wheelers and a trailer, two Sony 52-inch flat-screen televisions, Apple computers, iPads, OtterBox protective cases, iPods, Kindle E-readers, Leica and Nikon digital cameras, video cameras, a mini micro pinhole video camcorder pen, a night vision monocular, two pairs of binoculars, Bose headphones, a 3D printer, sports watches with heart-rate monitors, sunglasses, materials used to perform private consulting contracts, computer monitors and solar panels for a private hunting club, a personal video network for home use, and an uninterruptible power supply for a tennis ball machine. Maloney and Fraley also used Fraley’s PCard to pay for remodeling and maintenance expenses related to six rental properties they owned together in the name of a Georgia corporation called J’s Services, Inc.

Some of the fraudulent PCard charges and some of the remodeling and maintenance expenses for Maloney and Fraley’s rental properties were charged to a classified GTRI contract that was funded by the CIA.

Fraudulent Consulting Activity

In February 2007, Maloney and Acree were reprimanded by GTRI for engaging in outside consulting activity that violated Georgia Tech’s conflict-of-interest policy. Maloney and Acree sent a letter to their supervisor at GTRI, acknowledging that they had used facilities and equipment owned by Georgia Tech for their personal gain and benefit and promising that they would never do it again. But Maloney and Acree continued to engage in outside consulting activity that harmed Georgia Tech, and they were soon joined by Fraley.

Tec-Masters Inc.

From December 2007 through March 2013, while they were employed full-time by Georgia Tech, Maloney, Acree, and Fraley received approximately $500,000 from Picatinny Arsenal, SRA International, and the U.S. Air Force. They obtained those consulting contracts by using Acree’s former employer, Tec-Masters, Inc., as a billing pass-through. Tec-Masters, a defense contractor located in Huntsville, Alabama, performed no labor on any of the projects but merely facilitated the transfer of money from the customers to Maloney, Acree, and Fraley. Maloney, Acree, and Fraley falsely led those customers to believe that the work would be done by GTRI. They fostered this false impression by using their official GTRI telephone numbers and GTRI email addresses in their communications with customers. In addition, they met with customers at GTRI’s headquarters on the Georgia Tech campus and gave customers tours of GTRI’s labs and other facilities. Maloney called this “hiding in plain sight.”

Spectra Research, Inc.

From December 2010 through July 2013, Maloney and Fraley also moonlighted as consultants for Spectra Research, Inc., a defense contractor located in Dayton, Ohio. Spectra paid J’s Services $196,000 for this work. Maloney and Fraley directed Georgia Tech employees under their supervision at GTRI to help perform this consulting work for Spectra. Maloney and Fraley also directed those Georgia Tech employees to bill time for Spectra work to a classified CIA contract, even though that contract had nothing to do with Spectra.

In competing and billing for, and performing, their outside consulting work, Maloney, Acree, and Fraley violated Georgia Tech’s conflict-of-interest policy and code of business conduct; diverted customers and revenue away from Georgia Tech for their personal gain and benefit; and used Georgia Tech facilities and equipment for their personal gain and benefit.

Cover-up

During a routine audit in early 2013, Georgia Tech discovered problematic charges on Fraley’s PCard and scheduled a meeting with him. Maloney suggested to Acree and Fraley that they meet to “get our story straight.” Fraley, fearing that Maloney would seek to shift all the blame to him, recorded the cover-up meetings and provided those recordings to the FBI.

In their cover-up meetings, Maloney asked Acree and Fraley to help him “weave a story around” a fictitious set of facts designed to mislead Georgia Tech auditors. Maloney also suggested that they try to force Georgia Tech to shut down the audit by telling the auditors that the items charged to Fraley’s PCard were purchased for use on a classified CIA contract, and that the auditors did not need to know further details. That false narrative foreshadowed Maloney’s planned defense in the criminal case.

James G. Maloney, 57, of Marietta, Georgia, pleaded guilty on May 22, 2023, to conspiracy to commit mail and wire fraud. Sentencing for all three defendants will be scheduled at a later date, before Senior U.S. District Judge Richard W. Story.

This case is being investigated by the Federal Bureau of Investigation.

Assistant U.S. Attorneys Russell Phillips and Stephen H. McClain, and Trial Attorney Emma D. Ellenrieder of the Department of Justice National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA – A federal grand jury has indicted individuals in two separate cases for fraud related to the COVID-19 pandemic. Kenneth Wilkerson was indicted for his fraudulent acquisition of several Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL) for small businesses as well as his illegal possession of multiple firearms. Jeremy Graves was indicted for filing multiple fraudulent applications for unemployment insurance benefits using victims’ stolen personal identifying information.

“While communities suffered from the effects of the pandemic, the federal government worked to help small businesses and individuals avoid catastrophic economic disaster through the CARES Act,” said U.S. Attorney Ryan K. Buchanan.   “We will continue to investigate and prosecute those who illegally obtained these loans and work diligently to recover these funds intended to support struggling business owners and families.”

Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Division stated, “No matter how much Wilkerson tried to conceal his money laundering activities behind Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) funds, this was a drug trafficking operation, generating hundreds of thousands of dollars in illicit proceeds.”

“The defendant allegedly chose to illegally possess firearms,” said Alisha Jones, Assistant Special Agent in Charge of ATF’s Atlanta Field Division.  “We will continue to pursue those who seek to circumvent the law.”

“An important part of the mission of the Office of Inspector General is to investigate allegations of fraud related to unemployment insurance programs. We will continue to work with our law enforcement partners to aggressively investigate these types of allegations,” said Mathew Broadhurst, Special Agent-in-Charge, Southeast Region, U.S. Department of Labor Office of Inspector General.

According to U.S. Attorney Buchanan, the indictments, and other information presented in court: Kenneth Wilkerson allegedly submitted at least nine loan applications to financial institutions, authorized lenders, and the Small Business Administration that contained fraudulent information regarding gross revenues and fake employees at his various companies. He also allegedly submitted fraudulent tax forms and bank statements to support his loan applications. Wilkerson allegedly received more than $383,000 from Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL) that he failed to spend on authorized business purposes.

Jeremy Graves allegedly used stolen identification documents to apply for and obtain unemployment insurance (UI) benefits – a program that was expanded during the COVID-19 pandemic with CARES Act funds, in multiple states, including Georgia, California, Maryland, and Nevada. In his applications, Graves listed various addresses, including his own, as the applicant’s mailing address. Debit cards loaded with UI benefits were then mailed to those addresses. Graves allegedly called the bank associated with the debit cards to activate the cards, request new cards, and make other inquiries. The individuals whose identities were stolen and used to apply for the UI benefits did not apply, or give anyone permission to apply, for UI benefits on their behalf. Graves allegedly received over $230,000 in UI benefits to which he was not entitled.

Kenneth Wilkerson, 39, of Atlanta, Georgia, was charged in a 16-count superseding indictment with two counts of possession of a firearm by a convicted felon, two counts of bank fraud, eleven counts of wire fraud, and one count of money laundering. Wilkerson allegedly submitted fraudulent applications seeking more than $800,000 in PPP and EIDL funds for various, seemingly defunct businesses.

Jeremy Graves, 38, of Atlanta, Georgia, was charged in a 26-count indictment with 11 counts of wire fraud, eight counts of aggravated identity theft, and seven counts of theft of government funds. Graves allegedly applied for and obtained UI benefits in multiple states using stolen identities.

Members of the public are reminded that the indictment only contains charges.  The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.

The Kenneth Wilkerson case is being investigated by the Internal Revenue Service Criminal Investigation, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.

The Jeremy Graves case is being investigated by the Department of Labor – Office of Inspector General.

Assistant U.S. Attorneys Rebeca M. Ojeda and Mary Webb are prosecuting Kenneth Wilkerson. Special Assistant U.S. Attorney Diane C. Schulman is prosecuting Jeremy Graves.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

GAINESVILLE, Ga. - Jamerris Head has been sentenced to 12 years for selling fentanyl after pleading guilty to distribution of a controlled substance on July 13, 2022.

“Fentanyl has claimed too many lives, especially from our youth,” said U.S. Attorney Ryan K. Buchanan.  “We are grateful to our law enforcement partners for working hard to prevent this deadly drug from claiming more lives in accidental overdoses.”

“Fentanyl poisonings have taken a terrible toll on our communities.” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division.  “This criminal must now face the consequences of his actions.”

“Fentanyl is a dangerous and highly toxic drug that has wreaked havoc in far too many communities.  Disrupting the manufacturers and distributers of this poison remains a high priority for the GBI’s drug enforcement offices,” said Mike Register, Director, Georgia Bureau of Investigation.

According to U.S. Attorney Buchanan, the charges and other information presented in court: Between April and August of 2021, Jamerris Head sold multiple ounces of fentanyl on several occasions during controlled purchases by law enforcement. At the time of his arrest, agents seized approximately one kilogram of fentanyl, in both pill and powder form, and two firearms.

Jamerris Head, 39, of Buford, Georgia, was sentenced to 12 years in prison to be followed by five years of supervised release.

This case was investigated by the Drug Enforcement Administration and the Georgia Bureau of Investigation’s Appalachian Regional Drug Enforcement Office.

Assistant U.S. Attorney Jennifer Keen prosecuted the case.

The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

A North Carolina land appraiser pleaded guilty today to conspiring to defraud the United States as part of a syndicated conservation easement tax shelter scheme – involving inflated charitable contribution deductions based on a fraudulent appraisal value of a conservation easement on land – that claimed more than $1.3 billion in fraudulent tax deductions.

According to court documents and statements made in court, from 2008 to 2019, Walter “Terry” Douglas Roberts II of Shelby, North Carolina, conspired with others to defraud the United States by fraudulently inflating the value of the conservation easements upon which the tax deductions were based.

Roberts became a licensed appraiser in 2007 and began providing appraisals of conservation easements that same year. From 2008 through 2019, as part of the scheme, Roberts fraudulently inflated the values of at least 18 conservation easements by, among other things, not following normal appraisal methods, making false statements, and either personally manipulating or relying on knowingly manipulated data, in order to reach a targeted appraisal value – communicated to him by coconspirators – that would result in the desired tax deduction amount.

Roberts inflated some of his appraisals by at least 70%. The 18 conservation easements Roberts fraudulently appraised claimed approximately $466,961,000 in tax deductions, resulting in a tax loss to the IRS exceeding $129,000,000.

Roberts is scheduled to be sentenced on Nov. 14 and faces a maximum penalty of five years in prison, as well as a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia, and IRS Criminal Investigation Chief James C. Lee made the announcement.

IRS-CI and U.S. Postal Inspection Service are investigating the case.

Trial Attorneys Richard M. Rolwing, Grace Albinson, Parker Tobin, Jessica Kraft, and Nicholas J. Schilling Jr., of the Justice Department’s Tax Division and Assistant U.S. Attorney Christopher Huber, Deputy Chief of the Complex Frauds Section for the Northern District of Georgia are prosecuting the case. Assistant U.S. Attorney Brittney Campbell for the District of Idaho, formerly of the Tax Division, also previously worked on this case.

ATLANTA - Kenny Wells has been sentenced to ten years in prison for possessing a firearm after having been previously convicted of multiple felony offenses. Wells made headlines when he recklessly discharged a firearm at Hartsfield–Jackson Atlanta International Airport on the busy weekend before Thanksgiving in 2021.  Wells created enormous panic throughout the airport and forced a lockdown of the airport and surrounding area for over two hours after he discharged a firearm detected inside a bag he had carried into an airport security screening area.

“Wells is a multi-convicted felon who should not have been in possession of a firearm,” said U.S. Attorney Ryan K. Buchanan. “His behavior, particularly occurring at the world’s busiest airport, was especially dangerous. Fortunately, no one was injured when Wells discharged his firearm. He has now been held accountable for the consequences of his conduct.”

“Kenny Wells is a very violent individual who displays a total lack of concern for the lives of others.  This sentence represents the seriousness of his crime,” said ATF Special Agent in Charge Alicia Jones. “This sentence also ensures that Wells will not be able to hurt or terrorize anyone else for a very long time.”

“The Atlanta Police Department (APD) is committed to the safety of travelers and employees at Hartsfield–Jackson Atlanta International Airport. The egregious actions of Kenny Wells, a convicted felon, are disturbing.  He endangered the lives of multiple innocent travelers and airport personnel,” said Atlanta Police Chief Darin Schierbaum. “The conviction of Kenny Wells proves the effectiveness of our law enforcement partnerships, the dedication of the members of the various agencies that protect the world’s busiest airport, and our commitment to bringing criminals and repeat offenders to justice.”

According to U.S. Attorney Buchanan, the charges and other information presented in court: On November 20, 2021, Wells traveled to Hartsfield–Jackson Atlanta International Airport for a flight to New Orleans, Louisiana. This was the Saturday before Thanksgiving, so the airport was filled with passengers and traffic in the area was particularly high.

At approximately 1:30 p.m., Wells joined a security line to be screened by Transportation Security Administration (TSA) officers.  A TSA officer noticed something unusual inside a bag that Wells carried as the item went through an X-ray portal. The officer then moved the bag to a separate area for a closer inspection as Wells stood watching nearby. As the officer lifted a top layer of clothing inside the bag, Wells lunged forward and reached for a firearm concealed in the bag. Wells discharged the firearm as he grabbed the weapon and fled the area. People immediately panicked, with those nearby falling to the floor to protect themselves. Law enforcement officers responded by issuing an alert of a possible active shooter at the airport. Passengers in the domestic terminal area stampeded out of the airport, while passengers beyond the check-in kiosks were rushed to the concourse tunnels for protection.

The airport and surrounding area were placed in lockdown for more than two hours. This public safety precaution prevented passengers from boarding flights and pilots from allowing passengers to deplane from aircraft parked on the runways.

During the confusion, Wells escaped from the airport by blending in with the fleeing crowds. Surveillance cameras captured him at a nearby parking garage where he was seen discarding an object in a large metal trash can. Law enforcement officers later retrieved a firearm from the same trash can.  Because Wells left his boarding pass at the TSA checkpoint, law enforcement was able to identify him as the person who discharged the firearm, discarded the firearm in the parking garage trashcan, and caused widespread panic in the airport.

Kenny Wells, 44, of Atlanta, Georgia, has been sentenced to ten years in prison to be followed by three years of supervised release.  On January 4, 2023, Wells was convicted of the charge of possessing a firearm while being a convicted felon, in violation of Title 18, United States Code, Section 922(g)(1), after entering a guilty plea.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Atlanta Police Department.

Assistant U.S. Attorney Paul R. Jones prosecuted the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

GAINESVILLE, Ga. - Almarud Duarte, David Garcia, Eduardo Penaloza-Pacheco, and Kevin Tello have been sentenced for their respective roles in conspiring to sell kilogram amounts of methamphetamine. Law enforcement officers seized approximately 200 kilograms of methamphetamine during the investigation.

“Illicit drugs devastatingly impact our communities, resulting in significant suffering by those addicted to the substances and the families who love them,” said U.S. Attorney Ryan K. Buchanan.  “We thank our law enforcement partners for their dedication to combatting the scourge of drug trafficking and helping to keep our streets safe.”

“Finding, arresting and prosecuting the criminals trafficking illegal drugs greatly improves the safety of the community by preventing this poison from finding its way onto our streets,” said Acting Special Agent in Charge Travis Pickard, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Disrupting and dismantling drug trafficking organizations is one of HSI’s highest priorities and we are proud of the work that we and our partners are doing.”

“I’m pleased to see these offenders will spend time behind bars for their crimes,” said Hall County Sheriff Gerald Couch. “As you can see from this case, and so many others now under investigation, it takes teamwork to get these dangerous narcotics off of our streets. The Hall County Sheriff’s Office remains committed to the fight against illegal drugs pouring into our communities.”

According to U.S. Attorney Buchanan, the charges and other information presented in court: From May 2021 to August 2021, the defendants conspired to, and did, distribute kilogram amounts of methamphetamine. Kevin Tello and David Garcia supplied the drugs to Almarud Duarte, who then sold the methamphetamine. Additionally, on June 28, 2021, Eduardo Penaloza-Pacheco sold a kilogram of methamphetamine supplied to him by Tello. Law enforcement officers then seized approximately 200 kilograms of methamphetamine during a search of Garcia’s residence.

Duarte, Garcia, and Tello pled guilty to conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine. Penaloza-Pacheco pled guilty to distribution of methamphetamine. U.S. District Judge Richard W. Story sentenced the defendants as follows:

• Almarud Duarte, 27, of Oakwood, Georgia, pleaded guilty on January 23, 2023, and was sentenced to nine years in prison to be followed by five years of supervised release. 

• David Garcia, 42, of Duluth, Georgia, pleaded guilty on June 1, 2022, and was sentenced to 14 years in prison to be followed by five years of supervised release.

• Eduardo Penaloza-Pacheco, 38, of Gainesville, Georgia, pleaded guilty on May 16, 2022, and was sentenced to five years in prison to be followed by five years of supervised release.

• Kevin Tello, 27, of Lawrenceville, Georgia, pleaded guilty on May 1, 2022, and was sentenced to eight years in prison to be followed by five years of supervised release.

This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Federal Bureau of Investigation Safe Streets Task Force, the Hall County Multi-Agency Narcotics Squad, the Drug Enforcement Administration, the Gwinnett County Metro Task Force, and the Georgia State Patrol.

Assistant U.S. Attorney Jennifer Keen prosecuted the case.

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA - Esteban Niere has been sentenced for conspiring to distribute cocaine and methamphetamine.  Niere was a member of a drug trafficking organization operating in southwest Atlanta that was successfully disrupted following a federal, state, and local law enforcement investigation.

“This group of drug traffickers targeted vulnerable communities in our district for distributing illegal narcotics,” said U.S. Attorney Ryan K. Buchanan.  “Through the diligent efforts of our federal, state, and local law enforcement partners, we dismantled the organization’s distribution chain and prosecuted the suppliers.  This case demonstrates our commitment to removing dangerous drugs from our streets as well as the dealers who peddle them.”

“The DEA is committed to deploying resources to combat and interrupt the dangerous drug trafficking organizations that have set up business in the Atlanta area,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division. “We will continue to work aggressively to hold accountable those who are trafficking dangerous drugs.”

According to U.S. Attorney Buchanan, the charges and other information presented in court: In 2019, DEA special agents identified a prolific drug trafficker, Kevin Clark, who coordinated multiple narcotics transactions in and around his residence in southwest Atlanta. Through an investigation that followed, law enforcement was able to disrupt and eventually dismantle a drug trafficking organization comprising Clark’s sources-of-supply, including Esteban Niere, Alejandro Elias-Miranda, and Eduardo Gutierrez, and mid-level traffickers, including Christopher Jones, Christopher Allen, and Tierre Freeman.  Law enforcement also seized multiple vehicles, firearms, cash, and jewelry, which were used in the commission, or purchased with the proceeds, of the offenses. 

Each of the following defendants in the case pleaded guilty to the charge of drug trafficking conspiracy and received the following sentences imposed by U.S. District Judge Michael L. Brown:

• Kevin Clark, 46, of Atlanta, Georgia, entered a guilty plea to the drug trafficking conspiracy and received a sentence of seven years, three months in prison, to be followed by five years of supervised release.

• Esteban Niere, a/k/a “Perfecto Neri-Diaz,” 50, of San Luis Potosi, Mexico, entered a guilty plea to the drug trafficking conspiracy and received a sentence of ten years in prison, to be followed by five years of supervised release.

• Eduardo Gutierrez, a/k/a “Santos Campos-Rios,” 43, of Morelia, Mexico, entered a guilty plea to the drug trafficking conspiracy and received a sentence of sentence of six years, eight months in prison, to be followed by five years of supervised release.

• Christopher Jones, 42, of Norcross, Georgia, entered a guilty plea to the drug trafficking conspiracy and received a sentence of 15 years in prison, to be followed by 10 years of supervised release.

• Tierre Freeman, a/k/a “Tierre Ford,” 46, of Stockbridge, Georgia, entered a guilty plea to the drug trafficking conspiracy and received a sentence of 10 years in prison, to be followed by four years of supervised release.

• Christopher Allen, 48, of Austell, Georgia, entered a guilty plea to the drug trafficking conspiracy and received a sentence of two years in prison, to be followed by four years of supervised release.

• Lamon Brown, 50, of Jonesboro, Georgia, entered a guilty plea to the drug trafficking conspiracy and received a sentence of two years, seven months in prison, to be followed by three years of supervised release.

• Alejandro Elias-Miranda, 37, of Toluca, Mexico, entered a guilty plea to the drug trafficking conspiracy and received a sentence of six years, eight months in prison, to be followed by eight years of supervised release. 

This case was investigated by the Drug Enforcement Administration, the U.S. Marshals Service, and the Georgia Bureau of Investigation, with valuable assistance provided by the Georgia State Patrol, Atlanta Police Department, Gwinnett County Police Department, Henry County Police Department, Douglasville Police Department, Rockdale County Sheriff’s Office, Cartersville Police Department, Forsyth County Sheriff’s Office, Covington Police Department, Troup County Sheriff’s Office, and the Lee County Sheriff’s Office.

Assistant U.S. Attorney C. Brock Brockington prosecuted the case.

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA - Parents are making plans to send their children to summer camps as the school year comes to an end.  To ensure that children with disabilities can attend summer camps in the same way as children without disabilities, the U.S. Attorney’s Office announced today that it has sent the attached flyer to summer camps located within the Northern District of Georgia to remind these groups of their legal obligations under the Americans with Disabilities Act (ADA).

“Summer camps provide fun and important developmental opportunities for children and offer parents and caregivers a safe place for their children to socialize with one another during the summer,” said U.S. Attorney Ryan K. Buchanan.  “Children with disabilities deserve an equal opportunity to safely participate in camp activities and programs.  This is not an option; it is the law.”

Under the ADA, summer camps, whether private or run by municipalities and counties, must afford reasonable modifications to ensure that children with disabilities can participate fully in camp programs and activities.  Camps must evaluate each child on an individual basis and train their staff in the requirements of the ADA.  Camps must also pay for the cost of any reasonable modifications necessary for a child with a disability to participate in camp activities. 
         

For more information, please visit www.ada.gov or call our Civil Rights Hotline at (404) 581-4626.  

For inquiries, please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga. 

ATLANTA – Masi Lenard Fears has been arraigned on federal charges of Distribution of a Controlled Substance Resulting in Serious Bodily Injury or Death, stemming from his sale of a lethal combination of fentanyl and xylazine (commonly referred to as “tranq”).

“The use of illicit fentanyl is already deadly and now drug dealers seek to increase their unlawful profits by mixing fentanyl with xylazine – a powerful sedative used by veterinarians,” said U.S. Attorney Ryan K. Buchanan. “The emergence of ‘tranq’ or ‘tranq dope’ in our community is beyond alarming and so our office is committed to partnering with our federal, state, and local law enforcement partners and community stakeholders to help educate the public about this significant threat.”

“Adding xylazine to an already dangerous drug like illicit fentanyl illustrates the ruthlessness of drug dealers’ pursuit of higher profits,” said Robert J. Murphy, the Special Agent in Charge of the Atlanta Field Division. “But the DEA remains relentless in bringing drug dealers to justice.”

“The reckless disregard for life by drug dealers can wreak havoc in any community,” said Conyers Deputy Chief of Police Kim Lucas. “It will not be tolerated in our city, and we are grateful for the partnership with the DEA and the work by the U.S. Attorney’s Office to hold such persons accountable.”

According to U.S. Attorney Buchanan, the charges, and other information presented in court: In March 2021, Masi Fears allegedly sold two men a $20 amount of a powdery substance at a gas station in Conyers, Georgia. The men believed they were buying cocaine or heroin, but the powder Fears sold them was actually a deadly combination of fentanyl and xylazine (commonly referred to as “tranq”). The men used some of Fears’ fentanyl/xylazine powder, which quickly killed one of the men and caused serious injury to the other.

The Conyers Police Department (CPD) investigated the incident and identified Fears as the dealer of the narcotics. Fears was in possession of a loaded handgun when CPD officers later arrested him.

Masi Lenard Fears, 36, of Conyers, Georgia, was arraigned before U.S. Magistrate Judge John K. Larkins III.  Fears was indicted by a federal grand jury on April 11, 2023. Members of the public are reminded that the indictment only contains charges.  The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.

According to a recent DEA Public Safety Alert, “DEA has seized xylazine and fentanyl mixtures in 48 of 50 States. The DEA Laboratory System is reporting that in 2022 approximately 23% of fentanyl powder and 7% of fentanyl pills seized by the DEA contained xylazine.” The full Public Safety Alert is available at https://www.dea.gov/alert/dea-reports-widespread-threat-fentanyl-mixed-xylazine.

This case is being investigated by the U.S. Drug Enforcement Administration (DEA) and the Conyers Police Department.

Assistant U.S. Attorney Thomas Forsyth is prosecuting the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA - Rajesh Motibhai Patel, a primary care physician at the Veterans Affairs Medical Center in Decatur, Georgia, has been indicted on multiple counts of violating his patients’ constitutional right to bodily integrity while acting under color of law and for engaging in unwanted sexual contact. 

“Our Veterans have made incredible sacrifices for our country and deserve the best medical treatment and highest quality of care,” said U.S. Attorney Ryan K. Buchanan.  “Patel allegedly sexually abused his female patients and violated his oath to do no harm to patients under his care.”

“Veterans and their families expect and deserve the highest quality of health care delivered in a safe and accountable setting,” said VA Inspector General Michael J. Missal. “The VA Office of Inspector General is committed to working with our law enforcement partners to ensure the safety of those who entrust their health care to the providers and staff at VA’s 1,200 medical facilities.”

According to U.S. Attorney Buchanan, the charges, and other information presented in court: Between 2019 and 2020, Rajesh Motibhai Patel, a physician at the Veterans Affairs Medical Center, allegedly assaulted four of his female patients during routine exams, groped their breasts, and improperly touched their vaginal area.

Investigators believe that Dr. Rajesh Motibhai Patel, 68, of Lilburn, Georgia, may have victimized additional patients. If you have information related to Dr. Patel that could further the investigation, or if you suspect that a particular person may have been one of his victims, please call the VA-OIG tipline at (770) 758-6646.

Members of the public are reminded that the indictment only contains charges.  The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.

This case is being investigated by the Department of Veterans Affairs, Office of Inspector General.

Assistant U.S. Attorneys Erin N. Spritzer and Jennifer Keen are prosecuting the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA - Stefan Zappey has been sentenced to federal prison for sexually abusing four of his former elementary school students near Stuttgart, Germany.

“Zappey abused a critical position of trust as an elementary school teacher and sexually abused multiple students,” said U.S. Attorney Ryan K. Buchanan.  “His crimes were horrific, and the community is safer now that he no longer has access to children.”

“Zappey presented himself as a dedicated teacher, but in reality, he is the most dangerous type of predator, an educator who uses his position of trust to gain access to children and victimize them for his own sick gratification,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI remains committed to protecting children and is thankful for the law enforcement partnerships that make it possible to stop people like Zappey from victimizing anyone else.”

“The successful prosecution of Stefan Zappey demonstrates the Justice Department’s commitment to prosecuting U.S. citizens who prey on young and vulnerable children regardless of where and when the crimes occurred,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Zappey’s offenses are especially egregious because he was entrusted with teaching the children of our brave service members overseas. The courage of the victims and the perseverance of investigators and prosecutors ensured that Zappey’s offenses were exposed and will prevent him from abusing even more children.”

“Victimizing and preying on DoD dependents is unacceptable,” said Ryan Hall, Special Agent-in-Charge of the Department of the Army Criminal Investigation Division’s Europe Field Office. “Army CID will continue to work closely with our law enforcement partners to investigate these crimes and bring the perpetrators to justice.”

According to U.S. Attorney Buchanan, the charges and other information presented in court: Stefan Zappey sexually abused four of his former elementary school students between 2006 and 2010.  At the time, Zappey was employed by the Department of Defense Education Activity (DODEA) federal school system as a first- through third-grade teacher at Patch Elementary school. The school is located on a U.S. military installation near Stuttgart, Germany.

Specifically, in 2019, Army criminal investigators were notified that one of Zappey’s former students reported that Zappey touched her inappropriately under her clothing when she was a student at Patch Elementary in 2009 and 2010.  An investigation that followed revealed that four of Zappey’s former students reported that Zappey placed his hand inside their underwear and directly touched their genitals on multiple occasions. The victims were between six and eight years old and were elementary school students at the time of the sexual abuse.  At trial, other students and faculty members of Patch Elementary reported that Zappey frequently hugged students, had them sit on his lap, and touched their backs and stomachs under their clothes.

Stefan Zappey, 57, of Stuttgart, Germany, has been sentenced to life in prison, and to pay a special assessment of $800.00.  Zappey was found guilty by a jury on January 18, 2023.

This case was investigated by the Federal Bureau of Investigation and U.S. Army Criminal Investigative Division.

Assistant U.S. Attorney Leanne M. Marek and Trial Attorney Eduardo Palomo of the Criminal Division’s Child Exploitation and Obscenity Section prosecuted the case.

This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse.  Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.