Northern District of Georgia

ATLANTA – Gary Terrell Davis, an associate of the 135 Piru gang responsible for a series of violent acts throughout the Northern District of Georgia, is the last defendant to be sentenced for his role in a federal RICO conspiracy. The main targets in the case, including lead defendant Maurice Antonio Kent, were previously convicted and sentenced for their roles in the execution-style murder of a 17-year-old boy and other offenses.

“The pain and fear these defendants caused through their senseless violence has forever altered the lives of the victims, the victims’ families, and the witnesses brave enough to assist investigators.” said U.S. Attorney Ryan K. Buchanan. “We are grateful to our law enforcement partners for their perseverance in investigating the various acts of violence and threats of violence committed by this gang over the years and for bringing a measure of closure to those who have been impacted.  While the perpetrators of these crimes are now in prison, tragically the gang culture that promoted these violent acts remains a scourge in our community. At-risk teens remain vulnerable to the lure of gang culture and require our collective diligence to avoid this dangerous path.”  

“The members of the 135th Street Pirus gang were willing to violently assault and kill people for the smallest perceived sign of disrespect,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI and the Safe Streets Gang Task Force are committed to working with our partners to ensure that individuals are held accountable for their crimes and to eliminate gang violence from our communities.”

“This case is a great example of how collaboration with our local and federal partners is necessary to fight organized crime,” stated Brookhaven Chief of Police Brandon Gurley.  “We are grateful for the relentless work of the U.S. Attorney’s Office to hold this final defendant accountable for the violent crimes he committed in our city and throughout Georgia.”

“Again, I’d like to credit the Project Safe Neighborhoods (PSN), a program conducted by the U.S. Attorney’s Office for the Northern District of Georgia that has been in place for many years,” said Cartersville Police Chief Frank McCann.  “The PSN program puts federal, state, and local law enforcement officers together regularly to remove violent repeat offenders from our streets.”

According to U.S. Attorney Buchanan, the charges and other information presented in court: The 135 Pirus gang originated in Compton, California, and has a national presence, including in the Northern District of Georgia.  Maurice Antonio Kent, a.k.a. “Savage Duze,” 32, the lead defendant charged in the RICO Conspiracy, was a gang leader in northwest Georgia with leadership authority over members in the vicinity of Cartersville and Rome, Georgia. 

In the early morning hours of May 13, 2017, an argument occurred outside a Brookhaven, Georgia, nightclub between a California-based 135 Pirus gang member and a rival gang member.  At that time, Kent fired multiple rounds into a crowd of people outside the club, critically wounding the other gang member as well as a club security guard.  During his flight from the scene, Kent tossed the firearm from a vehicle just before he was apprehended by police. Soon after being arrested and while in custody, Kent learned that a 17-year-old fellow gang member, who may have witnessed the shooting, was interviewed by law enforcement.  Kent suspected the teen of “snitching.”  Two days later, 135 Pirus gang members devised a plan to lure the teenager to Bartow County, where they shot and killed him with Kent’s gun, leaving the boy’s body on a rural road.  

At Kent’s federal trial earlier this year, a jury heard evidence that eight months prior to the nightclub shooting, Kent committed a drive-by shooting of a man standing in his front yard in Cartersville, Georgia.  After that shooting, Kent threw the firearm into Lake Allatoona. The FBI later recovered the gun from the bottom of the lake and matched cartridge casings and a bullet from the drive-by shooting to Kent’s firearm. 

On May 18, 2022, the jury found Maurice Antonio Kent a.k.a., “Savage Duze,” 32, of Cartersville, Georgia, guilty of RICO Conspiracy, violent crime in aid of racketeering, discharging a firearm during the commission of those violent crimes, and possession of a firearm as a convicted felon.   On August 24, 2022, the Court sentenced Kent to 40 years in prison to be followed by three years of supervised release.   

Gary Terrell Davis, a.k.a. “Bhody,” 36, of Cartersville, Georgia, was sentenced to seven years in prison to be followed by three years of supervised release.

In addition to Kent and Davis, the following 135 Pirus gang members and associates were previously convicted and sentenced in this case:

• Christopher Nwanjoku, a.k.a. “Problem,” 30, a 135 Pirus leader from Lawrenceville, Georgia, received a sentence of 25 years in prison, to be followed by three years of supervised release.  Nwanjoku pled guilty to RICO Conspiracy.

• Jamel Dupree Hughes, a.k.a. “Savage,” 28, a 135 Pirus member from Atlanta, Georgia, received a sentence of 26 years and two months in prison, to be followed by three years of supervised release. Hughes pled guilty to murder in aid of racketeering, use of a firearm in furtherance of a crime of violence resulting in death, attempted murder in aid of racketeering, and discharge of a firearm in furtherance of a crime of violence.

• Cedric Sams, Jr., a.k.a. “Awall,” 30, a 135 Pirus member from Cartersville, Georgia, received a sentence of 20 years in prison to be followed by three years of supervised release. Sams pled guilty to murder in aid of racketeering and use of a firearm in furtherance of a crime of violence resulting in death.

• Michael Kent, a.k.a. “Wikked,” 32, a 135 Pirus associate from Atlanta, Georgia, who is Maurice Antonio Kent’s twin brother, was sentenced to 20 years in prison to be followed by three years of supervised release.  Michael Kent pled guilty to RICO Conspiracy. 

• Jennifer Foutz, a.k.a. “Rose,” 30, a 135 Pirus member from Acworth, Georgia, was sentenced to 12 years in prison, to be followed by three years of supervised release. Foutz pled guilty to aiding and abetting murder in aid of racketeering and aiding and abetting the use of a firearm in furtherance of a crime of violence resulting in death. 

• DaSean Dorey, 29, a 135 Pirus member from Decatur, Georgia, was sentenced to ten years in prison, to be followed by three years of supervised release.  Dorsey pled guilty to aiding and abetting murder in aid of racketeering and aiding and abetting the use of a firearm in furtherance of a crime of violence resulting in death. 

This case was investigated by the FBI Safe Streets Gang Task Force, with valuable assistance provided by the Brookhaven Police Department, the Bartow County Sheriff’s Office, the Cartersville Police Department, and the Georgia Department of Community Supervision.   

Assistant U.S. Attorneys Jessica Morris, who serves as a Project Safe Neighborhoods Coordinator, and Michael Herskowitz, 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 - Hubert Nathans has been sentenced to federal prison for selling fake Roxicodone pills containing fentanyl to multiple people in Roswell, Georgia, in 2017 and 2018, including pills that resulted in the death of one buyer and serious bodily injury to another. Nathans’ drug supplier, Edward Culton, was sentenced to federal prison earlier this year.

“Nathans and Culton remorselessly sought to profit from drug addiction at any cost,” said U.S. Attorney Ryan K. Buchanan.  “Their greed resulted in the tragic death of one person and the near-death of another.  As the opioid epidemic continues to rage nationwide, these significant sentences should make clear that opioid suppliers and dealers will be held accountable for the devastation they wreak in our communities.”

“Last year, more than 100,000 people died of drug poisoning, many of which were caused by fentanyl – that’s more than double the occupancy of Truist Park” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “These two defendants contributed to this staggering statistic and will therefore spend a lengthy time behind bars.”

“The success of this investigation is a result of the collaborative efforts of ATF and our local partners,” said ATF Assistant Special Agent in Charge Beau Kolodka   “ATF will continue to dedicate federal resources in conjunction with the crucial contributions of local agencies towards the eradication illegal drug and firearm activity.

“Each and every pill distributed by Nathans and Culton in our community represented the potential for another life lost.  We remain committed to working hand-in-hand with our law enforcement partners to stem the tide of overdose deaths, and to aggressively pursuing the entire criminal ecosystem that contributes to them,” said Roswell Police Chief James Conroy.         

According to U.S. Attorney Buchanan, the charges, and other information presented in court: In the fall of 2017, the Roswell Police Department began an investigation after reports that Nathans was distributing opioids that had led to overdoses.  Law enforcement eventually confirmed that Nathans was distributing fake Roxicodone pills containing fentanyl and that Edward Culton, who was living in a high-rise apartment in the Buckhead section of Atlanta, was his supplier. 

On February 15, 2018, agents arrested Culton and Nathans. Agents seized almost 1000 pills containing fentanyl during a search of Culton’s apartment.  The investigation further revealed that Nathans sold fentanyl pills supplied by Culton to 24-year-old T.C. on October 2, 2017, and that those pills caused T.C.’s overdose death.

After learning of T.C.’s death, Nathans egregiously returned to dealing fentanyl and, three months later, sold pills to 30-year-old E.M., who also would have died had she not received emergency treatment at a local hospital. 

Hubert Nathans, 33, of Roswell, Georgia, was sentenced by U.S. District Judge Timothy C. Batten, Sr., to 12 years in prison followed by 15 years of supervised release.  He was convicted of these charges on August 13, 2018, after he pleaded guilty to conspiring to distribute and possessing with intent to distribute fentanyl that caused overdoses resulting in death and serious bodily injury.

Edward Culton, 29, of Atlanta, Georgia, was sentenced to 18 years, three months in prison to be followed by five years of supervised release.  He was convicted of these charges on September 8, 2022, after he pleaded guilty to conspiring to possess fentanyl with intent to distribute and aiding and abetting the distribution of fentanyl.

This case was investigated by the Drug Enforcement Administration, the Roswell Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.

Assistant U.S. Attorneys Tyler Mann and Nicholas Hartigan 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.

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 – Todd and Julie Chrisley have been sentenced to 12 and seven years, respectively, in federal prison after a jury convicted them of bank and tax fraud offenses following a nearly three-week jury trial.

“Over the course of a decade, the defendants defrauded banks out of tens of millions of dollars while evading payment of their federal income taxes” said U.S. Attorney Ryan K. Buchanan. “Their lengthy sentences reflect the magnitude of their criminal scheme and should serve as a warning to others tempted to exploit our nation’s community banking system for unlawful personal gain.”

“As this sentencing proves, when you lie, cheat, and steal, justice is blind to your fame, fortune, and position,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI is proud to work with our law enforcement partners at the IRS and the U.S. Attorney's office to pursue and prosecute individuals that are driven by greed to evade the law.”

“The Chrisleys defrauded financial institutions and the Federal Government through tax evasion and other fraudulent means in an effort to minimize their tax liability, but project an image of wealth,” said James E. Dorsey, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “This sentencing serves notice that no matter a person’s celebrity status, there are severe consequences for defrauding the American tax system.”

According to U.S. Attorney Buchanan, the charges and other information presented in court: Todd and Julie Chrisley conspired to defraud community banks in the Atlanta area to obtain more than $36 million in personal loans. The Chrisleys, with the help of their former business partner, submitted false bank statements, audit reports, and personal financial statements to Georgia community banks to obtain the loans. The Chrisleys spent the money on luxury cars, designer clothes, real estate, and travel – and used new fraudulent loans to pay back old ones.  After spending all the money, Todd Chrisley filed for bankruptcy and walked away from more than $20 million of these fraudulently obtained loans.

Later, while earning millions from their TV show, Todd and Julie Chrisley, along with their accountant, Peter Tarantino, conspired to defraud the Internal Revenue Service. Throughout the conspiracy, the Chrisleys operated a loan-out company. To evade collection of half a million dollars in delinquent taxes owed by Todd Chrisley, the Chrisleys opened and kept the corporate bank accounts only in Julie Chrisley’s name. But after the IRS requested information about bank accounts in Julie Chrisley’s name, the Chrisleys transferred ownership of the corporate bank account to a relative to further conceal their income from the IRS. 

In addition, the Chrisleys failed to file tax returns or pay any taxes for the 2013, 2014, 2015, or 2016 tax years. As a part of the tax evasion scheme, Tarantino was convicted of filing two false corporate tax returns for the loan-out company, which falsely claimed that the company earned no money and made no distributions in 2015 and 2016. 

The Chrisleys also attempted to obstruct justice before being charged as well as during the trial. After learning of the grand jury investigation, Julie Chrisley submitted a fraudulent document in response to a grand jury subpoena to make it appear that the Chrisleys had not lied to the bank when they transferred ownership of the loan-out company’s bank account to their relative.

On June 7, 2022, a jury convicted the Chrisleys on all counts of a superseding indictment, including conspiracy to commit bank fraud, bank fraud, wire fraud, and conspiracy to commit tax evasion. The jury convicted Julie Chrisley of an additional charge of obstruction of justice. Tarantino was also convicted of multiple tax-related violations.

U.S. District Judge Eleanor L. Ross sentenced the defendants as follows:

• Todd Chrisley, 54, of Brentwood, Tennessee, has been sentenced to 12 years in prison to be followed by three years of supervised release. 

• Julie Chrisley, 49, of Brentwood, Tennessee, has been sentenced to seven years in prison to be followed by three years of supervised release. 

• Peter Tarantino, 60, of Alpharetta, Georgia, has been sentenced to three years in prison to be followed by three years of supervised release. 

As part of sentencing, the Court ordered both Todd and Julie Chrisley to pay restitution and will determine the exact amount at a later date.

This case was investigated by the FBI and IRS Criminal Investigations. 

Assistant U.S. Attorneys Thomas J. Krepp, Annalise K. Peters, Alex R. Sistla, Sekret T. Sneed, Vivieon K. Jones, and Amy Palumbo 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. Department of Justice announced charges against 10 defendants in multiple states in connection with multiple business email compromise (BEC), money laundering, and wire fraud schemes that targeted Medicare, state Medicaid programs, private health insurers, and numerous other victims and resulted in more than $11.1 million in total losses.

“These defendants defrauded numerous individuals, companies, and federal programs, resulting in millions of dollars in financial losses to vital federal programs meant to provide assistance to those in need,” said U.S. Attorney Ryan K. Buchanan. “We pledge to continue to work alongside our federal and state partners to investigate and prosecute those who engage in fraud and money laundering activities resulting in financial and psychological harm to members of our communities.”

“The Criminal Division and our partners are committed to holding accountable those who seek to line their own pockets through sophisticated business email compromise and money laundering schemes targeting public and private health insurers as well as individual victims,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “As these cases demonstrate, we will work tirelessly to combat fraud affecting Medicare and Medicaid, which are vital in providing health care to millions of Americans, including some of our most vulnerable citizens.”

“These allegations depict a brazen effort to siphon monies, in part, from essential health care programs to instead fund personal gain,” said Deputy Inspector General for Investigations Christian J. Schrank of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “A top concern of HHS-OIG is the integrity of programs such as Medicare and Medicaid, so it is an utmost priority to pursue individuals who financially exploit them. This coordinated action is a prime example of the commitment that HHS-OIG and our law enforcement partners have to defending the federal health care system against fraud.”

“Millions of American citizens rely on Medicaid, Medicare, and other health care systems for their health care needs. These subjects utilized complex financial schemes, such as BECs and money laundering, to defraud and undermine health care systems across the United States,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “Elder fraud and romance fraud schemes utilized by the subjects often target our most vulnerable citizens and the FBI is committed to pursuing justice for those who were victimized by these schemes.”

According to U.S. Attorney Buchanan, the charges and other information presented in court: The charges stem primarily from BEC schemes in which individuals posing as business partners are alleged to have fraudulently diverted money from victims’ bank accounts into accounts they or co-conspirators controlled (sometimes through the use of recruited “money mules”) by using spoofed email addresses, bank account takeovers, and similar fraudulent methods designed to deceive victims into believing they were making legitimate payments.  The prosecutions allege schemes that fraudulently diverted payments intended for hospitals to provide medical services to patients.

For example, fraudulent emails from accounts resembling those associated with actual hospitals were allegedly sent to public and private health insurance programs requesting that future reimbursements be sent to new bank accounts that did not belong to the hospitals.

Unwittingly, five state Medicaid programs, two Medicare Administrative Contractors, and two private health insurers allegedly were deceived into making payments to the defendants and their co-conspirators instead of depositing the reimbursement payments into bank accounts belonging to the hospitals.

The defendants and their co-conspirators allegedly laundered the proceeds fraudulently obtained from these health care benefit plans and from other victims by, among other things, withdrawing large amounts of cash, layering them through other accounts they or their co-conspirators opened in the names of false and stolen identities and shell companies, transferring them overseas, and purchasing luxury goods and exotic automobiles.

This week, charges were unsealed against six defendants in the Northern District of Georgia and against one defendant in the District of South Carolina. In addition, one defendant was previously charged in the Northern District of Georgia and one was previously charged in the Eastern District of Virginia. A third defendant previously charged in the Northern District of Texas has entered a guilty plea and been sentenced. The alleged schemes caused more than $4.7 million in losses to Medicare, Medicaid, and private health insurers, and $6.4 million in losses to other federal government agencies, private companies, and individuals, such as elderly romance fraud victims who were deceived into sending hundreds of thousands of dollars to the defendants and their co-conspirators.

The seven defendants against whom charges were unsealed this week are:

• Biliamin Fagbewesa, 31, of Columbia, South Carolina, was charged by indictment in the District of South Carolina on November 8 with three counts of money laundering and one count of unlawful procurement of naturalization. According to court documents, Fagbewesa allegedly used a stolen identity to open bank accounts in the name of a shell company to receive more than $1.4 million of proceeds fraudulently diverted from a state Medicaid program, a hospital, and others, approximately $583,000 of which Fagbewesa laundered and spent on, among other things, Fagbewesa’s rental payments.

• Patrick Ndong-Bike, 32, of Atlanta, Georgia, was charged by indictment in the Northern District of Georgia on November 15 with four counts of money laundering. According to court documents, Ndong-Bike allegedly used false identities to open bank accounts in the names of those identities and shell companies to receive approximately $2.4 million of proceeds of BEC fraud and other similar schemes, approximately $679,000 of which Ndong-Bike laundered and spent, including proceeds that were fraudulently diverted from Medicare and several private companies.

• Desmond Nkwenya, 35, of Atlanta, Georgia, was charged by indictment in the Northern District of Georgia on November 15 with two counts of money laundering and one count of bank fraud. According to court documents, Nkwenya allegedly used false identities to open bank accounts in the names of those identities and shell companies to receive approximately $308,000 derived from BEC fraud and other similar schemes, all of which Nkwenya laundered. Nkwenya also allegedly received approximately $119,000 as a result of a fraudulent Paycheck Protection Program loan application.

• Cory Smith, 29, of Atlanta, Georgia was charged by indictment in the Northern District of Georgia on November 15 with three counts of money laundering. According to court documents, Smith allegedly opened a bank account in the name of a false identity and used that account receive and launder more than $57,000 fraudulently diverted from a private company in a BEC scheme.

• Chisom Okonkwo, 26, of Atlanta, Georgia, was charged by indictment in the Northern District of Georgia on November 15 with three counts of wire fraud, two counts of aggravated identity theft, and six counts of money laundering. According to court documents, Okonkwo allegedly used stolen and false identities to open accounts in the names of shell companies that received approximately $830,000 in proceeds from BEC fraud and other similar schemes, approximately $535,000 of which Okonkwo allegedly laundered through a variety of transactions, including withdrawing large amounts in cash. Okonkwo also allegedly paid for a luxury car through a fraudulent loan she obtained in the name of a stolen identity.

• Olugbenga Abu, 45, of Atlanta, Georgia, was charged by indictment in the Northern District of Georgia on November 15 with one count of bank fraud, one count of wire fraud, and four counts of money laundering. According to court documents, Abu allegedly used a false identity to open a bank account that received and laundered more than $95,000 of BEC fraud proceeds.  Abu also allegedly obtained a fraudulent loan of more than $341,000 and fraudulently sought an additional $65,000 of loan proceeds from the Small Business Administration (SBA). 

• Trion Thomas, 50, of Stone Mountain, Georgia, was charged by information in the Northern District of Georgia on September 21 with conspiracy to commit money laundering. According to court documents, Thomas allegedly received and laundered $93,000 of Medicare payments that had been fraudulently diverted because of a BEC scheme that targeted Medicare.

The three defendants previously charged are:

• Malachi Mullings, 29, of Sandy Springs, Georgia, was charged in the Northern District of Georgia on February 22 with conspiracy to commit money laundering and seven substantive money laundering offenses. According to court documents, Mullings used numerous bank accounts opened in the name of a shell company, The Mullings Group LLC, to receive and launder millions of dollars derived from BEC schemes targeting a health care benefit program, private companies, and individual romance scam victims. In one instance, Mullings laundered $310,000 fraudulently diverted from a state Medicaid program that had been intended as reimbursement for a hospital. In another instance, Mullings received $260,000 from a romance scam perpetrated on an elderly victim, which he subsequently used to purchase a Ferrari.

• Adewale Adesanya, 39, of Jonesboro, Georgia, pleaded guilty in the Northern District of Texas on June 2 to conspiracy to commit money laundering and use of a false passport. According to court documents, Adesanya used a false passport in the name of “Timi Graig” to create a shell company for the purpose of opening bank accounts to receive and launder more than $1.5 million obtained from BEC schemes targeting two state Medicaid programs, the IRS, the SBA, a private company, and two elderly romance scam victims. On September 15, Adesanya was sentenced to four years in prison.

• Sauveur Blanchard Jr., 49, of Richmond, Virginia, was charged by indictment in the Eastern District of Virginia on September 8, 2021, with conspiracy to commit money laundering and four substantive money laundering offenses. According to court documents, Blanchard allegedly opened bank accounts in the names of shell companies to receive and launder more than $55,000 in Medicaid payments intended for a hospital but fraudulently diverted to Blanchard’s account. Trial in this matter is currently scheduled for January 9, 2023.    

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

The HHS-OIG; FBI Omaha Field Office and Seattle Field Office; IRS Criminal Investigation; U.S. Department of Homeland Security Homeland Security Investigations; U.S. Department of State Diplomatic Security Service; U.S. Secret Service; Department of the Army Criminal Investigation Division; U.S. Department of the Treasury Office of Inspector General; Federal Deposit Insurance Corporation Office of Inspector General; Arkansas Medicaid Fraud Control Unit; Wisconsin Department of Justice Division of Criminal Investigation; Minnesota Commerce Fraud Bureau; and Polk County Sheriff’s Office in Iowa are investigating the cases.

Assistant U.S. Attorney Kelly K. Connors for the Northern District of Georgia, Trial Attorneys Gary Winters, Chris Wenger, and Babu Kaza of the Criminal Division’s Fraud Section’s National Rapid Response Strike Force are prosecuting the cases, along with Assistant U.S. Attorney Kaitlin Cooke for the Eastern District of Virginia, and Assistant U.S. Attorney Amy Bower for the District of South Carolina. Assistant U.S. Attorney Rachel Scherle for the Southern District of Iowa provided significant assistance in the investigation of these cases. The case against Adewale Adesanya in the Northern District of Texas was prosecuted by the Criminal Division’s Fraud Section and Assistant U.S. Attorney Marty Basu and former Assistant U.S. Attorney Erica Hilliard for the Northern District of Texas.

The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 24 federal districts, has charged more than 4,200 defendants who collectively have billed the Medicare program for more than $19 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at https://www.justice.gov/criminal-fraud/health-care-fraud-unit.

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. Department of Justice announced charges today against 10 defendants in multiple states in connection with multiple business email compromise (BEC), money laundering, and wire fraud schemes that targeted Medicare, state Medicaid programs, private health insurers, and numerous other victims and resulted in more than $11.1 million in total losses.

“The Criminal Division and our partners are committed to holding accountable those who seek to line their own pockets through sophisticated business email compromise and money laundering schemes targeting public and private health insurers as well as individual victims,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “As these cases demonstrate, we will work tirelessly to combat fraud affecting Medicare and Medicaid, which are vital in providing health care to millions of Americans, including some of our most vulnerable citizens.”

The charges stem primarily from BEC schemes in which individuals posing as business partners are alleged to have fraudulently diverted money from victims’ bank accounts into accounts they or co-conspirators controlled (sometimes through the use of recruited “money mules”) by using spoofed email addresses, bank account takeovers, and similar fraudulent methods designed to deceive victims into believing they were making legitimate payments.

“These defendants defrauded numerous individuals, companies, and federal programs, resulting in millions of dollars in financial losses to vital federal programs meant to provide assistance to those in need,” said U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia. “We pledge to continue to work alongside our federal and state partners to investigate and prosecute those who engage in fraud and money laundering activities resulting in financial and psychological harm to members of our communities.”

“In the District of South Carolina, we’ve seen a marked increase in email scams, identity theft, and related money laundering schemes,” said U.S. Attorney Adair Boroughs for the District of South Carolina. “These indictments demonstrate our unwavering commitment to fighting internet crime and holding internet fraudsters accountable, particularly when their schemes target taxpayer-funded programs intended to benefit the most vulnerable among us.”

The prosecutions announced today include alleged schemes that fraudulently diverted payments intended for hospitals to provide medical services to patients. For example, fraudulent emails from accounts resembling those associated with actual hospitals were allegedly sent to public and private health insurance programs requesting that future reimbursements be sent to new bank accounts that did not belong to the hospitals. Unwittingly, five state Medicaid programs, two Medicare Administrative Contractors, and two private health insurers allegedly were deceived into making payments to the defendants and their co-conspirators instead of depositing the reimbursement payments into bank accounts belonging to the hospitals. The defendants and their co-conspirators allegedly laundered the proceeds fraudulently obtained from these health care benefit plans and from other victims by, among other things, withdrawing large amounts of cash, layering them through other accounts they or their co-conspirators opened in the names of false and stolen identities and shell companies, transferring them overseas, and purchasing luxury goods and exotic automobiles.

“These allegations depict a brazen effort to siphon monies, in part, from essential health care programs to instead fund personal gain,” said Deputy Inspector General for Investigations Christian J. Schrank of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “A top concern of HHS-OIG is the integrity of programs such as Medicare and Medicaid, so it is an utmost priority to pursue individuals who financially exploit them. This coordinated action is a prime example of the commitment that HHS-OIG and our law enforcement partners have to defending the federal health care system against fraud.”

“Millions of American citizens rely on Medicaid, Medicare, and other health care systems for their health care needs. These subjects utilized complex financial schemes, such as BECs and money laundering, to defraud and undermine health care systems across the United States,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “Elder fraud and romance fraud schemes utilized by the subjects often target our most vulnerable citizens and the FBI is committed to pursuing justice for those who were victimized by these schemes.”

This week, charges were unsealed against six defendants in the Northern District of Georgia and against one defendant in the District of South Carolina. In addition, one defendant was previously charged in the Northern District of Georgia and one was previously charged in the Eastern District of Virginia. A third defendant previously charged in the Northern District of Texas has entered a guilty plea and been sentenced. The alleged schemes caused more than $4.7 million in losses to Medicare, Medicaid, and private health insurers, and $6.4 million in losses to other federal government agencies, private companies, and individuals, such as elderly romance fraud victims who were deceived into sending hundreds of thousands of dollars to the defendants and their co-conspirators.

The seven defendants against whom charges were unsealed this week are:

• Biliamin Fagbewesa, 31, of Columbia, South Carolina, was charged by indictment in the District of South Carolina on Nov. 8 with three counts of money laundering and one count of unlawful procurement of naturalization. According to court documents, Fagbewesa allegedly used a stolen identity to open bank accounts in the name of a shell company to receive more than $1.4 million of proceeds fraudulently diverted from a state Medicaid program, a hospital, and others, approximately $583,000 of which Fagbewesa laundered and spent on, among other things, Fagbewesa’s rental payments. If convicted of the top count, he faces a maximum penalty of 20 years in prison.

• Patrick Ndong-Bike, 32, of Atlanta, Georgia, was charged by indictment in the Northern District of Georgia on Nov. 15 with four counts of money laundering. According to court documents, Ndong-Bike allegedly used false identities to open bank accounts in the names of those identities and shell companies to receive approximately $2.4 million of proceeds of BEC fraud and other similar schemes, approximately $679,000 of which Ndong-Bike laundered and spent, including proceeds that were fraudulently diverted from Medicare and several private companies. If convicted of the top count, he faces a maximum penalty of 20 years in prison.

• Desmond Nkwenya, 35, of Atlanta, Georgia, was charged by indictment in the Northern District of Georgia on Nov. 15 with two counts of money laundering and one count of bank fraud. According to court documents, Nkwenya allegedly used false identities to open bank accounts in the names of those identities and shell companies to receive approximately $308,000 derived from BEC fraud and other similar schemes, all of which Nkwenya laundered. Nkwenya also allegedly received approximately $119,000 as a result of a fraudulent Paycheck Protection Program loan application. If convicted of the top count, he faces a maximum penalty of 30 years in prison.

• Cory Smith, 29, of Atlanta, Georgia was charged by indictment in the Northern District of Georgia on Nov. 15 with three counts of money laundering. According to court documents, Smith allegedly opened a bank account in the name of a false identity and used that account receive and launder more than $57,000 fraudulently diverted from a private company in a BEC scheme. If convicted of one of the counts, he faces a maximum penalty of 20 years in prison.

• Chisom Okonkwo, 26, of Atlanta, Georgia, was charged by indictment in the Northern District of Georgia on Nov. 15 with three counts of wire fraud, two counts of aggravated identity theft, and six counts of money laundering. According to court documents, Okonkwo allegedly used stolen and false identities to open accounts in the names of shell companies that received approximately $830,000 in proceeds from BEC fraud and other similar schemes, approximately $535,000 of which Okonkwo allegedly laundered through a variety of transactions, including withdrawing large amounts in cash. Okonkwo also allegedly paid for a luxury car through a fraudulent loan she obtained in the name of a stolen identity. If convicted of the top count, she faces a maximum penalty of 20 years in prison.

• Olugbenga Abu, 45, of Atlanta, Georgia, was charged by indictment in the Northern District of Georgia on Nov. 15 with one count of bank fraud, one count of wire fraud, and four counts of money laundering. According to court documents, Abu allegedly used a false identity to open a bank account that received and laundered more than $95,000 of BEC fraud proceeds.  Abu also allegedly obtained a fraudulent loan of more than $341,000 and fraudulently sought an additional $65,000 of loan proceeds from the Small Business Administration (SBA).  If convicted of the top count, he faces a maximum penalty of 30 years in prison.

• Trion Thomas, 50, of Stone Mountain, Georgia, was charged by information in the Northern District of Georgia on Sept. 21 with conspiracy to commit money laundering. According to court documents, Thomas allegedly received and laundered $93,000 of Medicare payments that had been fraudulently diverted because of a BEC scheme that targeted Medicare. If convicted, he faces a maximum penalty of 20 years in prison.

The three defendants previously charged are:

• Malachi Mullings, 29, of Sandy Springs, Georgia, was charged in the Northern District of Georgia on Feb. 22 with conspiracy to commit money laundering and seven substantive money laundering offenses. According to court documents, Mullings used numerous bank accounts opened in the name of a shell company, The Mullings Group LLC, to receive and launder millions of dollars derived from BEC schemes targeting a health care benefit program, private companies, and individual romance scam victims. In one instance, Mullings laundered $310,000 fraudulently diverted from a state Medicaid program that had been intended as reimbursement for a hospital. In another instance, Mullings received $260,000 from a romance scam perpetrated on an elderly victim, which he subsequently used to purchase a Ferrari. If convicted of the top count, he faces a maximum penalty of 20 years in prison.

• Adewale Adesanya, 39, of Jonesboro, Georgia, pleaded guilty in the Northern District of Texas on June 2 to conspiracy to commit money laundering and use of a false passport. According to court documents, Adesanya used a false passport in the name of “Timi Graig” to create a shell company for the purpose of opening bank accounts to receive and launder more than $1.5 million obtained from BEC schemes targeting two state Medicaid programs, the IRS, the SBA, a private company, and two elderly romance scam victims. On Sept. 15, Adesanya was sentenced to four years in prison.

• Sauveur Blanchard Jr., 49, of Richmond, Virginia, was charged by indictment in the Eastern District of Virginia on Sept. 8, 2021, with conspiracy to commit money laundering and four substantive money laundering offenses. According to court documents, Blanchard allegedly opened bank accounts in the names of shell companies to receive and launder more than $55,000 in Medicaid payments intended for a hospital but fraudulently diverted to Blanchard’s account. Trial in this matter is currently scheduled for Jan. 9, 2023.  If convicted of any of the counts, he faces a maximum penalty of 20 years in prison.

In each case, a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The HHS-OIG; FBI Omaha Field Office and Seattle Field Office; IRS Criminal Investigation; U.S. Department of Homeland Security Homeland Security Investigations; U.S. Department of State Diplomatic Security Service; U.S. Secret Service; Department of the Army Criminal Investigation Division; U.S. Department of the Treasury Office of Inspector General; Federal Deposit Insurance Corporation Office of Inspector General; Arkansas Medicaid Fraud Control Unit; Wisconsin Department of Justice Division of Criminal Investigation; Minnesota Commerce Fraud Bureau; and Polk County Sheriff’s Office in Iowa are investigating the cases.

Trial Attorneys Gary Winters, Chris Wenger, and Babu Kaza of the Criminal Division’s Fraud Section’s National Rapid Response Strike Force are prosecuting the cases, along with Assistant U.S. Attorney Kelly Connors for the Northern District of Georgia, Assistant U.S. Attorney Kaitlin Cooke for the Eastern District of Virginia, and Assistant U.S. Attorney Amy Bower for the District of South Carolina. Assistant U.S. Attorney Rachel Scherle for the Southern District of Iowa provided significant assistance in the investigation of these cases. The case against Adewale Adesanya in the Northern District of Texas was prosecuted by the Criminal Division’s Fraud Section and Assistant U.S. Attorney Marty Basu and former Assistant U.S. Attorney Erica Hilliard for the Northern District of Texas.

The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 24 federal districts, has charged more than 4,200 defendants who collectively have billed the Medicare program for more than $19 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at https://www.justice.gov/criminal-fraud/health-care-fraud-unit.

An indictment and an information are merely allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

A criminal complaint filed in the District of New Jersey was unsealed today charging a dual Russian and Canadian national for his alleged participation in the LockBit global ransomware campaign.

Mikhail Vasiliev, 33, of Bradford, Ontario, Canada, is in custody in Canada and is awaiting extradition to the United States.

“This arrest is the result of over two-and-a-half-years of investigation into the LockBit ransomware group, which has harmed victims in the United States and around the world,” said Deputy Attorney General Lisa O. Monaco. “It is also a result of more than a decade of experience that FBI agents, Justice Department prosecutors, and our international partners have built dismantling cyber threats. Let this be yet another warning to ransomware actors: working with partners around the world, the Department of Justice will continue to disrupt cyber threats and hold perpetrators to account. With our partners, we will use every available tool to disrupt, deter, and punish cyber criminals.”

“Yesterday's successful arrest demonstrates our ability to maintain and apply relentless pressure against our adversaries,” said FBI Deputy Director Paul Abbate. “The FBI's persistent investigative efforts, in close collaboration with our federal and international partners, illustrates our commitment to using all of our resources to ensure we protect the American public from these global cyber threat actors.”

According to court documents, LockBit is a ransomware variant that first appeared in or around January 2020. It has become one of the most active and destructive ransomware variants in the world. Since first appearing, LockBit has been deployed against at least as many as 1,000 victims in the United States and around the world. LockBit members have made at least $100 million in ransom demands and have extracted tens of millions of dollars in actual ransom payments from their victims. The FBI has been investigating the LockBit conspiracy since in or around March 2020.     

According to court documents, Vasiliev allegedly participated in the LockBit campaign. He is charged with conspiracy to intentionally damage protected computers and to transmit ransom demands. If convicted, he faces a maximum of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Philip R. Sellinger for the District of New Jersey, Assistant Director Bryan Vorndran of the FBI’s Cyber Division, and Special Agent in Charge James Dennehy of the FBI Newark Field Office made the announcement.

Trial Attorneys Jessica C. Peck and Jorge Gonzalez of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Andrew M. Trombly and David E. Malagold of the Cybercrime Unit for the District of New Jersey are prosecuting the case, with assistance from the U.S. Attorney’s Office for the Northern District of Georgia and the U.S. Attorney’s Office for the Western District of Pennsylvania.

The case is being investigated by the FBI Newark Field Office, Newark Cyber Crimes Task Force, with assistance from the FBI Atlanta Field Office, the FBI Pittsburgh Field Office, the FBI Miami Field Office, the FBI’s Legal Attaché-Ottawa, the Jersey City Police Department, the New Jersey State Police, and the New Jersey Office of Homeland Security and Preparedness. The Justice Department’s Office of International Affairs has also provided valuable assistance.

A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

A former employee of the U.S. Embassy in the Republic of Moldova pleaded guilty yesterday in a domestic violence case involving his wife, a U.S. diplomat working at the Embassy.

According to court documents, Ilirjan Shema, 46, accompanied his family to Chisinau, Moldova, where his spouse, an employee of the U.S. Department of State, was assigned to work as a Foreign Service Officer at the U.S. Embassy. While in Moldova, Shema obtained a family member position to work at the Embassy. On April 10, 2021, while inside their official residence provided by the embassy, Shema attacked his wife, striking her, throwing her to the ground, and strangling her. The attack resulted in physical injuries. Shema was subsequently arrested on Aug. 5, 2021, when he traveled from Albania to Atlanta, Georgia. 

Shema pleaded guilty to a charge of interstate domestic violence. He is scheduled to be sentenced on Feb. 23, 2023 and faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia, and Principal Deputy Assistant Secretary and Director Carlos Matus of the U.S. Department of State’s Diplomatic Security Service (DSS) made the announcement.

The DSS Office of Special Investigations is investigating the case with the assistance of the Regional Security Office, U.S. Embassy in Chisinau, Republic of Moldova.

Trial Attorney Brian Morgan of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Stephanie Gabay-Smith for the Northern District of Georgia are prosecuting the case.

ATLANTA – A federal jury has found Thomas Addaquay guilty of 29 counts of fraud-related offenses in a stolen identity tax refund fraud scheme, including conspiracy to commit wire fraud, wire fraud, money laundering conspiracy, and money laundering.

“Addaquay and his co-defendants used the personal information of taxpayers to enrich themselves,” said U.S. Attorney Ryan K. Buchanan.  “Many of Addaquay’s victims testified in court that they were unaware that their identities had been stolen until they filed tax returns.  Theft of tax dollars affects everyone, and this office will bring to justice anyone who seeks to disrupt and take advantage of our tax system at the expense of innocent taxpayers.”

According to U.S. Attorney Buchanan, the charges and other information presented in court: From at least 2011 to at least 2016, Thomas Addaquay fraudulently obtained the names, social security numbers, and dates of birth of taxpayers to prepare and file false federal income tax returns. The filing of these fraudulent tax returns resulted in the issuance of thousands of tax refund checks. 

Addaquay, to cash these tax refund checks issued in the names of the victims whose identities he stole, represented to a third-party payment processor that he had received the tax refund checks from customers who used the services of his check cashing business, United Consolidated Accounting and Business Services, Inc.  Relying on Addaquay’s misrepresentations, the third-party payment processor processed the tax refund checks and wired more than $12 million into business bank accounts controlled by Addaquay.

Sentencing for Thomas Addaquay, 48, of Atlanta, Georgia, is scheduled for January 31, 2023, before U.S. District Judge Leigh Martin May.  Addaquay’s co-defendants previously pleaded guilty and will also be sentenced by Judge May:

• Sacoya Lyons pleaded guilty to one count of conspiracy to commit wire fraud. Sentencing is set for January 5, 2023; and

• Nana Addaquay, Thomas Addaquay’s brother, pleaded guilty to one count of money laundering conspiracy. Sentencing is set for January 17, 2023.

Internal Revenue Service Criminal Investigation is investigating the case.

Assistant U.S. Attorneys Sekret T. Sneed and Angela Adams are prosecuting the case.  Former Assistant U.S. Attorney Jeff Brown was the initial prosecutor on 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 - Richard Tyler Hunsinger has pleaded guilty to assault on a federal officer and destruction of government property stemming from his use of a homemade explosive device during a protest which threatened the lives of two federal officers during the summer of 2020.

“The citizens of this district have the right to peacefully protest,” said U.S. Attorney Ryan K. Buchanan. “But those who exploit peaceful protests by committing acts of violence, like throwing Molotov cocktails into buildings where law enforcement agents are working, and destroying government property, must be held accountable.”

“Anyone who assaults a law enforcement officer or destroys government property is dangerous and an extreme threat to public safety,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI will not tolerate protesters who turn violent and destructive and will aggressively pursue individuals that undermine the rule of law.  Thankfully, no one was seriously injured during Hunsinger’s act of terror.” 

“Finding, arresting and prosecuting violent criminals, like Hunsinger, who target law enforcement officers is one of the most important operations there is,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “We are thankful for the hard work done by all of the agencies involved in this case and hope that this sentence serves as a warning to anyone else thinking of committing such heinous acts.”

“The Atlanta Police Department respects every citizen’s right to protest, and we will do everything in our power to protect those rights. However, when a citizen decides to destroy government property, threaten other human beings with bodily harm and use explosive devices during a protest, their actions become criminal and therefore they must be held accountable. We hope this sends a strong message to others, that if you commit these types of acts during a protest, we will find you, and you will be arrested and prosecuted.” 

According to U.S. Attorney Buchanan, the charges and other information presented in court: On July 23, 2020, Hunsinger began organizing a protest titled “Rally Against Fascism.” The event was scheduled to occur at the Atlanta-Field Office of the Department of Homeland Security, Immigration and Customs Enforcement (the “DHS building”).

On July 25, 2020, at approximately 11:30 p.m., a crowd gathered at the DHS building for the rally and protested outside a fenced area in front of the building.  Hunsinger and others, wearing dark clothing and face coverings, breached the fences and began vandalizing the building. 

While the DHS building was occupied by at least two federal employees, Hunsinger smashed at least four windows of the front entry of the structure and then lit and threw a Molotov cocktail into the building through a smashed glass door.  At the same time, other individuals utilized rocks, cinder blocks, modified fireworks, more Molotov cocktails, and additional materials, to cause extensive damage to the building totaling more than $46,000.00.

Richard Tyler Hunsinger, 29, of Fairfax, Virginia, pleaded guilty to assault on a federal officer in violation of Title 18, United States Code, Sections 111(a)(1) and (b), and destruction of government property, in violation of Title 18, United States Code, Section 1361.  Sentencing is scheduled for January 24, 2023, at 10:30 a.m., before U.S. District Judge Amy Totenberg.

This case is being investigated by the Federal Bureau of Investigation and the Department of Homeland Security with assistance from the Atlanta Police Department.

Assistant U.S. Attorney Matthew Carrico is prosecuting this 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. - Amin Ali has been sentenced for disposing of hazardous waste without a permit after dumping hundreds of drums in a chicken house in North Georgia.

 “Ali abused the North Georgia environment by illegally dumping hundreds of drums of waste,” said U.S. Attorney Ryan K. Buchanan. “The environmental laws are designed to keep Georgia’s natural beauty available and safe for future generations and this office will work to enforce those laws.”

“This sentence serves as a reminder that if you choose to undermine environmental regulations by illegally dumping hazardous waste, you will be held accountable for your crimes,” said Special Agent in Charge Chuck Carfagno, of EPA CID Southeast Area Branch. “EPA and its state partners worked together to address the environmental problems and bring the defendant to justice.”

“This case demonstrates how local, state, and federal agencies work together to uphold and enforce laws designed to protect human health and the environment.  The Georgia Environmental Protection Division appreciates and would like to acknowledge the hard work and dedication of the women and men who collectively held the responsible party accountable for his actions and developed plans to remediate this release.  Such blatant violations of our environmental laws pose serious risk to the surrounding community and to the natural resources of the State of Georgia and must be redressed,” said Sara Lips, Director of Communications and Community Engagement, Georgia DNR Environmental Protection Division.

According to U.S. Attorney Buchanan, the charges and other information presented in court: The Resource Conservation and Recovery Act (RCRA) addresses the problem of hazardous waste transportation, treatment, storage, and disposal.  The RCRA is designed to protect human health and the environment by requiring the proper and safe management of hazardous waste – from the creation through the disposal of the waste material.  The RCRA prohibits the treatment, storage, and disposal of hazardous waste without a permit issued under the statute.  The RCRA also prohibits the transportation of hazardous waste to a facility that lacks a permit to accept hazardous waste.

The defendant, Amin Ali, owned and controlled Goldstar Investment Group LLC, 7 Days Property Management Inc., and Rock Springs Farming LLC.  Through these entities, he owned property in Dalton, Georgia (a warehouse formerly owned by a chemical company) and in Rock Springs, Georgia (a farming property containing several old chicken houses).

In August 2021, Ali possessed more than 100 drums and other containers of chemicals, including many containing hazardous waste, moved from the Goldstar property to the Rock Springs property.  The drums were discarded in one of the old chicken houses, with some of the drums left in an open trench to be buried.  Some of the contents of the drums spilled and leaked into the surrounding soil.

Subsequent testing of the drums and soil revealed the presence of benzene, lead, and chromium.  In addition, the contents of the drums were reactive and ignitable. 

After being alerted through a call to emergency services, Catoosa County, Georgia, Sheriff, Catoosa County Code Enforcement, Catoosa County Fire, Georgia Environmental Protection Division Emergency Response, Georgia Environmental Protection Division Hazardous Waste Management Section, and EPA Emergency Response responded to the scene.  Ultimately, the cost of the clean-up exceeded $500,000.

Amin Ali, 56, of Dalton, Georgia, has been sentenced to two months in prison to be followed by one year of supervised release and ordered to pay a $25,000 fine and restitution in the amount of $32,596.93.  Ali was convicted on June 22, 2022, after he pleaded guilty to the charges.

Working with our U.S. Department of Justice partners, the U.S. Attorney’s Office for the Northern District of Georgia seeks to secure environmental justice for all communities, to ensure that everyone enjoys the same degree of protection from environmental and health hazards and equal access to a healthy environment in which to live, learn, play and work.  U.S. Attorney Buchanan encourages residents to contact the U.S. Attorney’s Office via email at USAGAN.Environment@usdoj.gov when also contacting local, state, or federal agency hotlines or websites to report environmental, health and safety concerns. Notifying our Office helps us protect the community from harmful violations of federal health & safety laws.  For more information, see https://www.justice.gov/usao-ndga/environmental-justice.

This case was investigated by the U.S. Environmental Protection Agency, Criminal Investigation Division and the Georgia Environmental Protection Division Law Enforcement Unit.

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 - Daniel Kaye has been arraigned on charges of access device fraud and money laundering conspiracy. Kaye’s charges arise from his alleged operation of The Real Deal, a Dark Web market that sold, among other things, hacking tools and stolen login credentials, and his laundering of funds he received from that market.

“While living overseas, this defendant allegedly operated an illegal website that made hacking tools and login credentials available for purchase, including those for U.S. government agencies,” said U.S. Attorney Ryan K. Buchanan. “This case is a timely reminder, during National Cybersecurity Awareness Month, that federal law enforcement will make those accused of breaking U.S. laws face their day in court, regardless of where they reside in the world.”

“This case is an example of our persistent determination to work with our international partners to hold criminals accountable no matter how sophisticated their cyber fraud or their geographic location,” said Keri Farley, Special Agent in Charge of FBI Atlanta.  “Let this indictment be a message that the FBI and our partners place a high priority on the investigation and prosecution of hackers who intrude into our infrastructure and threaten the personal security of our citizens.”

According to U.S. Attorney Buchanan, the charges, and other information presented in court: Kaye allegedly operated The Real Deal, a Dark Web market for illicit items, including stolen account login credentials for U.S. government computers; stolen account login credentials for social media accounts and bank accounts; stolen credit card information; stolen personally identifiable information; illegal drugs; botnets; and computer hacking tools. The market was organized into categories, such as “Exploit Code,” “Counterfeits,” “Drugs,” “Fraud & More, “Government Data,” and “Weapons.” The market allowed vendors to create accounts and list their products. These vendors maintained profile pages offering a rating system where buyers could rank vendors.

The indictment alleges that Kaye listed for sale on The Real Deal login credentials for U.S. government computers belonging to the U.S. Postal Service, the National Oceanic and Atmospheric Administration, the Centers for Disease Control and Prevention, the National Aeronautics and Space Administration, and the U.S. Navy. The indictment further alleges that Kaye, along with an individual (or individuals) known as “thedarkoverlord,” trafficked in stolen social security numbers; and that Kaye possessed 15 or more stolen login credentials for Twitter and LinkedIn. Finally, the indictment alleges that Kaye laundered cryptocurrency he obtained from The Real Deal through Bitmixer.io, a website that offered Bitcoin “mixing” services and, through its “mixing” algorithm, sought to keep its users anonymous, private, and immune to Bitcoin blockchain tracing analysis.

On April 13, 2021, a federal grand jury returned an indictment charging Kaye with five counts of access device fraud for unauthorized solicitation, in violation of 18 U.S.C. § 1029(a)(6), one count of using and trafficking in unauthorized access devices, in violation of 18 U.S.C. § 1029(a)(2), two counts of possession of unauthorized and counterfeit access devices, in violation of 18 U.S.C. § 1029(a)(3), and one count of money laundering conspiracy, in violation of 18 U.S.C. § 1956(h). Kaye was overseas at the time the indictment was filed and, in September 2022, consented to his extradition from Cyprus to the United States.

Daniel Kaye, also known as “Popopret,” “Bestbuy,” “TheRealDeal,” “Logger,” “David Cohen,” “Marc Chapon,” “UserL0ser,” “Spdrman,” “Dlinch Kravitz,” “Fora Ward,” and “Ibrahim Sahil,” 34, of London, England, was arraigned before U.S. Magistrate Judge Linda T. Walker.  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 Federal Bureau of Investigation. Also the Department of Justice’s Office of International Affairs, Cyprus Ministry of Justice and Public Order, Cyprus Police, German Bundeskriminalamt, and United Kingdom National Crime Agency, assisted in this investigation.

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

October is recognized as National Cybersecurity Awareness Month. Unfortunately, criminals continue to victimize people online by exploiting their personal security, financial safety, and identity. To help victim service providers and allied professionals better serve victims of cybercrime and keep them safer online, the Office for Victims of Crime Training & Technical Assistance Center offers many resources to update the field about cybersecurity and the tools available to serve victims. Please visit their website to learn more: https://www.ovcttac.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 – Nagaindra Srivastav has pleaded guilty to conspiracy and kickback charges for his role in selling fraudulent doctors’ orders to his co-conspirators, who used the orders to obtain at least $25 million in fraudulent payments from Medicare.

“Srivastav and his co-conspirators targeted our most vulnerable citizens to line their pockets with taxpayer money,” said U.S. Attorney Ryan K. Buchanan. “Our office is committed to finding and prosecuting those who exploit telemedicine and use it as a platform for their criminal schemes.”

“Healthcare fraud touches every corner of the United States. Srivastav’s actions cost taxpayers at least $25 million dollars,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “His criminal conduct was driven by personal greed. This guilty plea will serve as a reminder to others that the FBI and its law enforcement partners will investigate and prosecute individuals illegally exploiting healthcare technology for their own riches.”

“Health care fraud is not a victimless crime and those who defraud federal health care programs carelessly waste valuable taxpayer dollars and contribute to the rising cost of health care,” said Special Agent in Charge Tamala E. Miles, at the Department of Health and Human Services, Office of Inspector General (HHS-OIG).  “Working closely with our law enforcement partners, HHS-OIG remains committed to investigating and holding accountable perpetrators of health care fraud.”

According to U.S. Attorney Buchanan, the charges and other information presented in court:  Srivastav was the owner of B2B Apps Solutions (“B2B”), a Florida-based company. Through B2B, Srivastav and his co-conspirators created and operated an internet-based platform that individuals and businesses in the health care industry used for the purchase and sale of physician orders for Durable Medical Equipment (“DME”), such as ankle, back, knee, or leg braces.

Through B2B, Srivastav paid and received remuneration for the referral of federal health care business. To accomplish this, Srivastav created a website, RepsHub, in which DME companies and others uploaded potential DME-patient information, called “leads,” which were generally obtained through telemarketing campaigns targeting beneficiaries for whom DME products could be billed. In addition, and in conjunction with his selling of physician orders, Srivastav also offered and sold leads, which he obtained through call centers controlled by himself and his co-conspirators.

Srivastav purchased the physicians’ orders that he sold to his customers from purported telemedicine companies based in the Philippines and Pakistan. These orders lacked medical necessity, and Srivastav was notified on numerous occasions that the purported authorizing physician had not actually spoken with the patient, signed the order, or prescribed the braces. Although Srivastav never personally submitted claims to Medicare or any other health care program, he is responsible for at least $25 million in federal health care program reimbursement.

Sentencing for Nagaindra Srivastav, 58, of Tampa, Florida, is scheduled for January 19, 2023, at 10:30 a.m., before U.S. District Judge Steve C. Jones.

This case is being investigated by the Department of Health and Human Services Office of Inspector General and the Federal Bureau of Investigation.

Assistant U.S. Attorney David A. O'Neal 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 – U.S. Attorney Ryan K. Buchanan announced that Assistant U.S. Attorney (AUSA) Brent Gray will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2022, general election.  AUSA Gray has been appointed to serve as the District Election Officer (DEO) for the Northern District of Georgia, and in that capacity is responsible for overseeing the district’s handling of election day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington.

“Every citizen must be able to vote without interference or discrimination and to have that vote counted in a fair and free election,” said U.S. Attorney Ryan K. Buchanan.  “Similarly, election officials and staff must be able to serve without being subject to unlawful threats of violence.  The Department of Justice will always work tirelessly to protect the integrity of the election process.”

The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud.  The Department will address these violations wherever they occur.  The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.

U.S. Attorney Buchanan added, “Ensuring free and fair elections depends in large part on the assistance of the American electorate.  It is important that those who have specific information about voting rights concerns or election fraud make that information available to the Department of Justice.”

Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input.  It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice.  The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).  

"The franchise is the cornerstone of American democracy,” said U.S. Attorney Buchanan.  “We all must ensure that those who are entitled to the franchise can exercise it if they choose, and that those who seek to corrupt it are brought to justice.”

In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, AUSA/DEO Gray will be on duty in this District while the polls are open.  He can be reached by the public at the following telephone numbers: (404) 581-6001.

In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day.  The local FBI field office can be reached by the public at 770-216-3000.

Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/.

Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities.  State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.

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 - Ronald Bell was arraigned before Magistrate Judge Regina Cannon on charges arising from a conspiracy to extort the Georgia Institute of Technology by falsely claiming an individual associated with its basketball program committed sexual assault.  Bell and co-defendant Jennifer Pendley were indicted on these charges by a federal grand jury on August 24, 2022.

“The defendants are alleged to have falsely accused Georgia Tech’s coach of sexual assault,” said U.S. Attorney Ryan K. Buchanan.  “They then demanded a large payment in exchange for a retraction of the claim.  The Federal Bureau of Investigation and our other federal law enforcement partners are especially proficient in exposing false allegations designed to extort money.  Individuals who attempt to perpetrate such criminal schemes at the expense of law-abiding citizens will be caught and prosecuted.”

“Once again, greed does not pay,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “These defendants sought to damage the reputations of the institution and coach for their own financial gain. The FBI will not stop in bringing people who try and commit this type of fraud to justice. “

According to U.S. Attorney Buchanan, the indictment, and other information presented in court: Ronald Bell and his girlfriend, Jennifer Pendley, allegedly conspired with each other, and a Georgia Tech security guard, to falsely accuse an individual associated with Georgia Tech’s men’s basketball team of sexual assault.  Bell is alleged to have recruited the security guard to claim falsely that he witnessed an assault of Pendley.  Pendley filed a lawsuit claiming sexual battery, sexual assault, and intentional infliction of emotional distress. 

Bell allegedly told the security guard that the false accusation of sexual assault could be worth $20 million and promised the guard a share of the money.  Bell is also alleged to have communicated with representatives of Georgia Tech and demanded money in exchange for not reporting the claimed sexual assault.  Ultimately, the security guard admitted to law enforcement that his statements were false and that Bell asked him to participate in the scheme to support the false sexual assault claim.

The indictment alleges Ronald Bell, 56, and Jennifer Pendley, 50, both from Oro Valley, Arizona, committed conspiracy to transmit a threat interstate, conspiracy to extort property from another, and attempted extortion. 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.

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

Assistant U.S. Attorney Christopher J. Huber 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. – Rodney Dwayne Brendle has been convicted by a jury on two methamphetamine trafficking charges.  Just after his initial trial date was set in 2021, Brendle removed his geolocation ankle monitor and became a fugitive from justice.  He was later arrested in Oregon. 

“Brendle and his co-defendants traveled several hours from North Carolina to Lilburn, Georgia, to purchase a large amount of methamphetamine,” said U.S. Attorney Ryan K. Buchanan.  “His conviction following a jury trial serves as a reminder to those residing inside and outside of our district that prosecutions of narcotics traffickers remain a priority for this office and for our federal, state, and local law enforcement partners.”

“The cocktail of deadly chemicals used to manufacture methamphetamine is a recipe for disaster,” said Robert J. Murphy Special Agent in Charge of the DEA Atlanta Field Division. “‘Meth’ not only is volatile and toxic, but it destroys families, communities, and lives. Because of the collective effort between DEA and its law enforcement counterparts, the prosecution of this case and the subsequent guilty verdict were made possible.”

According to U.S. Attorney Buchanan, the charges and other information presented at trial:  On June 14, 2019, Drug Enforcement Administration (DEA) agents and other law enforcement officers conducted surveillance of an apartment complex associated with Alexis Figueroa, a narcotics trafficker in Doraville, Georgia. The investigators saw Figueroa complete multiple narcotics transactions that day. 

The investigators continued to surveil Figueroa as he drove from the apartment complex to a store in Lilburn. The investigators watched as Figueroa arrived in the store’s parking lot and picked up Rodney Dwayne Brendle’s co-defendant, James Cantley.  Cantley entered Figueroa’s vehicle and obtained approximately two kilograms of methamphetamine from Figueroa for $10,000.  Brendle and a second co-defendant, Adam Henderson, watched from the front of the store as the transaction occurred.  The evidence presented at trial revealed that Brendle, Cantley, and Henderson drove from North Carolina to Georgia to purchase the drugs. Georgia State Patrol officers, working in conjunction with DEA, arrested Brendle, Cantley, and Henderson after the three men departed the parking lot of the store in Brendle’s vehicle. 

Brendle was indicted by a federal grand jury on August 27, 2019, on one count of conspiracy to possess with intent to distribute a controlled substance and one count of possession of a controlled substance with intent to distribute.  He was already on probation at that time as result of a state court felony guilty plea for possession of methamphetamine in North Carolina. 

In addition, while on pretrial supervision awaiting the start of his trial, Brendle removed a geolocation ankle monitor and became a fugitive from justice.  He was later arrested in Oregon and returned to the Northern District of Georgia to stand trial. Following a five-day trial, but after deliberating under only two hours, a jury returned guilty verdicts on both counts of the indictment on October 12, 2022.  Brendle’s sentencing hearing is scheduled before U.S. District Judge Amy Totenberg in January 2023.

The charges against the co-defendants have also been resolved as follows:  

• James Kristoffer Cantley, 40, of Newton, North Carolina, pleaded guilty to conspiracy to possess with intent to distribute a controlled substance, and was sentenced to 10 years, one month in prison to be followed by five years of supervised release;

• Adam Shane Henderson, 47, of Hickory, North Carolina, pleaded guilty to conspiracy to possess with intent to distribute a controlled substance, and is awaiting sentencing; and 

• Alexis Figueroa-Lozano, 23, of Doraville, Georgia, pleaded guilty to trafficking in illegal drugs, and was sentenced to 15 years of confinement in Georgia state court. 

This case was investigated by the Drug Enforcement Administration with assistance from the Georgia State Patrol.

Assistant U.S. Attorneys Miguel R. Acosta and Sandy Strippoli 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 – Tiffany Brown has been indicted for allegedly defrauding the Federal Emergency Management Agency (“FEMA”) in connection with a nearly $156 million contract she was awarded that required Brown to provide 30 million self-heating meals to the residents of Puerto Rico in the aftermath of Hurricane Maria in 2017.

“It is unconscionable that Brown would exploit the disaster that Hurricane Maria wrought on Puerto Rico,” said U.S. Attorney Ryan K. Buchanan. “The residents of Puerto Rico—fellow Americans—were depending on and expecting the very best from its federal government, and from one another, during this unprecedented disaster. Our office will not hesitate to prosecute those who attempt to defraud the government during times of great need.”

“The DHS Office of Inspector General extends appreciation to the U.S. Department of Justice and our law enforcement partners for their continued collaboration.  This indictment sends a clear message that the theft of federal disaster funds will not be tolerated,” said Dr. Joseph V. Cuffari, Inspector General, U.S. Department of Homeland Security.

“Fraudsters looking to profit off of individuals who are already suffering from the impact of a natural disaster is an appalling and inexcusable crime,” said Keri Farley, Special Agent in Charge of FBI Atlanta.  “The FBI and our partners will aggressively pursue any person who seeks to line their pockets by defrauding the government during times of tragedy.”

According to U.S. Attorney Buchanan, the charges and other information presented in court: On September 20, 2017, Hurricane Maria made landfall as a Category 4 hurricane in Puerto Rico. As a result, officials issued a major disaster declaration, and—shortly thereafter on September 25 and 26, 2017—FEMA issued a solicitation seeking vendors to provide 40,000,000 self-heating meals per week to the island. FEMA made clear that it required meals that were actually self-heating, and that meals requiring a microwave or heating by some external source—such as boiling water—were unacceptable.

On September 28, 2017, Brown submitted a proposal to FEMA falsely representing that her Georgia-based company, Tribute Contracting LLC (“Tribute”), could provide the necessary self-heating meals. In doing so, Brown allegedly misrepresented that Tribute and she:

• Could deliver 10 million meals per day utilizing 210 trucks;

• Prepositioned its inventory and would have more than 300,000 meals in its possession before an emergency response;

• Were equipped with the “vehicles, staff, and know-how to meet. . delivery needs 24 hours a day, 7 days a week”; and

• Partnered with a major logistics agency to meet FEMA’s delivery requirements.

Brown allegedly not only lacked any of these capabilities but had plagiarized significant portions of her proposal. On October 1, 2017, Brown followed-up with FEMA about her proposal and allegedly represented falsely that she had firm confirmation from her “core suppliers for 30 million self-heating meals in 30 days” and that she could begin delivering one million self-heating meals a day beginning on October 7, 2017. In reality, Brown had neither secured any suppliers to provide the self-heating meals nor arranged with any shippers or logistics agencies to deliver these meals.

On October 3, 2017, FEMA awarded Tribute and Brown a $155,982,000 contract that required Brown to deliver 30,000,000 self-heating meals between October 7, 2017 and October 23, 2017, beginning with a delivery of one million meals on October 7. Brown had still not secured a supplier for any self-heating meals when she was awarded the FEMA contract. Nevertheless, between October 7 and 9, Brown allegedly continued to falsely misrepresent the status of her suppliers and timing of deliveries. On October 11, 2017, Brown submitted to FEMA a voucher and supporting documentation (i.e., bills of lading) requesting a payment of $255,000 based on false representations that she had delivered 50,000 self-heating meals.

Although Brown had procured 50,000 meals from a small Georgia vendor, these meals were not self-heating, and Brown in fact never delivered any self-heating meals as required under the FEMA contract. Indeed, after submitting the fraudulent voucher, Brown allegedly was still trying to secure a vendor who could supply the millions of self-heating meals that the FEMA contract required.

On October 19, 2017, Brown continued to claim to FEMA that she would supply the required meals. That same day, FEMA terminated its contract with Brown and Tribute. Even after the contract was terminated, Brown allegedly made false representations to FEMA in an effort to secure additional payments from FEMA for costs that Brown had purportedly incurred while trying to fulfill the contract.

Tiffany Brown, 43, of Atlanta, Georgia, was arraigned before U.S. Magistrate Judge Regina D. Cannon, charged with 11 counts of major disaster fraud, 14 counts of wire fraud, one count of theft of government money, and three counts of money laundering. 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.  Brown was indicted by a federal grand jury on September 27, 2022.

This case is being investigated by the Department of Homeland Security, Office of Inspector General, and Federal Bureau of Investigation, with substantial assistance from the Federal Emergency Management Agency’s Office of Chief Counsel.

Assistant U.S. Attorneys Alex R. Sistla and Jessica Morris 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 jury has convicted former City of Atlanta Commissioner of Watershed Management Jo Ann Macrina for accepting bribes from an Atlanta contractor in exchange for steering city business worth millions of dollars to the contractor’s company.

“Jo Ann Macrina betrayed the citizens of Atlanta by accepting cash, luxury items, and the promise of a future job in return for steering lucrative City of Atlanta contracts to a local businessman,” said U.S. Attorney Ryan K. Buchanan.  “Public officials who enrich themselves at the expense of the citizens they are pledged to serve exact a heavy toll on taxpayers, the economy, and the public trust. We remain committed to prosecuting officials who violate their oath to the public.”

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

According to U.S. Attorney Buchanan, the charges and other information presented in court:  Jo Ann Macrina served as the Commissioner of Atlanta’s Department of Watershed Management from 2011 through May 2016. During Macrina’s tenure, the City of Atlanta awarded contracts worth millions of dollars to PRAD Group Inc. (PRAD Group), an architectural, design, and construction management and services firm based in Atlanta. To ensure that PRAD Group received city business worth millions of dollars, Macrina replaced two evaluators who previously represented the Department of Watershed Management with herself and another individual and engaged in other efforts to alter scores that had previously been assigned to potential contractors.

Macrina also discussed potential employment with and accepted things of value from Lohrasb “Jeff” Jafari, who was the executive vice president of PRAD Group. In exchange, Macrina provided Jafari with access to confidential information and preferential treatment with respect to City of Atlanta projects.

Macrina accepted $10,000 in cash, jewelry, a room at a luxury hotel in Dubai, and landscaping work at her home from Jafari either directly or through another employee of PRAD Group. Shortly after Macrina’s employment with the City of Atlanta ended she began working for Jafari and PRAD Group. Between June 2016 and September 2016, Jafari and/or PRAD Group paid Macrina $30,000 in four separate payments.

Jo Ann Macrina, 65, of Daytona Beach Shores, Florida, was convicted of conspiracy and federal program bribery. She is scheduled to be sentenced at a later date.

The FBI Atlanta Field Office and IRS Criminal Investigation investigated the case.

Assistant U.S. Attorney Nathan P. Kitchens and Trial Attorney Jolee Porter of the Justice Department’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.

A federal jury convicted the former City of Atlanta Commissioner of Watershed Management today for accepting bribes from an Atlanta contractor in exchange for steering city business worth millions of dollars to the contractor’s company.

According to court documents and evidence presented at trial, Jo Ann Macrina, 65, of Daytona Beach Shores, Florida, served as the Commissioner of Atlanta’s Department of Watershed Management from 2011 through May 2016. During Macrina’s tenure, the City of Atlanta awarded contracts worth millions of dollars to PRAD Group Inc., an architectural, design, and construction management and services firm based in Atlanta. In order to ensure that PRAD Group received city business worth millions of dollars, Macrina replaced two evaluators who previously represented the Department of Watershed Management with herself and another individual, and engaged in other efforts to alter scores that had previously been assigned to potential contractors.

The evidence presented at trial established that Macrina also discussed potential employment with and accepted things of value from Lohrasb “Jeff” Jafari, who was the executive vice president of PRAD Group, in exchange for providing Jafari with access to confidential information and preferential treatment with respect to City of Atlanta projects. Macrina accepted $10,000 in cash, jewelry, a room at a luxury hotel in Dubai, and landscaping work at her home from Jafari either directly or through another employee of PRAD Group. Shortly after Macrina’s employment with the City of Atlanta ended, she began working for Jafari and PRAD Group. Between June 2016 and September 2016, Jafari and/or PRAD Group paid Macrina $30,000 in four separate payments.

Macrina was convicted of conspiracy and federal program bribery. Her sentencing will be scheduled at a later date. She faces up to 15 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia; Special Agent in Charge Keri Farley of the FBI Atlanta Field Office; and Assistant Special Agent in Charge Lisa Fontanette of the IRS Criminal Investigation made the announcement.

The FBI Atlanta Field Office and IRS Criminal Investigation investigated the case.

Trial Attorney Jolee Porter of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Nathan P. Kitchens for the Northern District of Georgia are prosecuting the case.

ATLANTA - The Justice Department announced that it has filed a lawsuit against Bartow County, Georgia, alleging that the County violated Title VII of the Civil Rights Act of 1964 when it subjected former employee Carlen Loyal to a racially hostile work environment, retaliated against former employee Bobby Turner, and fired both men, who are Black. Title VII is a federal statute that prohibits employers from discriminating on the basis of sex, race, color, national origin and religion. Title VII also forbids employers from retaliating against employees for complaining about discrimination in the workplace or otherwise asserting their rights under Title VII.

“No one should be forced to labor in an environment where employers condone racial slurs and employees are expected to tolerate them,” said U.S. Attorney Ryan K. Buchanan. “It is also unacceptable for an employer to foster a work environment where employees with the courage to report such abhorrent behavior experience retaliation from supervisors and face termination of their jobs.  Our office will vigorously and continuously leverage our resources to address this type of illegal discrimination in the workplace.”

“No employee should have to endure racial harassment or retaliation in the workplace, especially racial slurs,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Punishing employees for reporting harassment and discrimination to their supervisors is illegal and undermines the basic statutory protections designed to identify and root out racial harassment in workplaces across the country.”

According to U.S. Attorney Buchanan, the charges, and other information presented in court: Loyal was employed at the County’s Road Department for almost 10 years. Loyal’s brother-in-law, Turner, was also employed by the Road Department for several years. In 2019, Loyal complained to his supervisor that a white co-worker sent him a text message referring to him as an “n-word.”

After Loyal’s complaint, the human resources (HR) director called Loyal into his office, where he subjected Loyal to additional, severe racial harassment in front of the employee who sent the racist text message. The HR director also demanded to know whether Loyal had informed anyone else of the text message, and Loyal responded that he had informed Turner. Just over two weeks later, the County accused Loyal and Turner of misconduct and terminated their employment. The complaint alleges that Loyal and Turner, each of whom had been promoted several times, had no prior history of discipline with the County before Loyal complained about race discrimination.

Loyal and Turner filed charges of discrimination with the Equal Employment Opportunity Commission (EEOC). The EEOC’s Atlanta District Office investigated the charges and found reasonable cause that the County violated Title VII. After unsuccessful conciliation efforts, the EEOC referred the charges to the Justice Department.

The United States, through this lawsuit, seeks to require the County to develop and implement policies that would prevent discrimination and retaliation. The United States also seeks monetary relief for Loyal and Turner to compensate them for damages that they sustained as a result of the alleged discrimination and retaliation.

The full and fair enforcement of Title VII is a top priority of the Justice Department’s Employment Litigation Section of the Civil Rights Division. Additional information about the Civil Rights Division and the jurisdiction of the Employment Litigation Section is available on its websites at www.justice.gov/crt/ and https://www.justice.gov/crt/employment-litigation-section.

This case is being handled by Assistant U.S. Attorney Trishanda Treadwell and Senior Trial Attorney Jeremy Monteiro of the DOJ Civil Rights Division’s Employment Litigation Section.       

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 - DermaTran Health Solutions, LLC; Pharmacy Insurance Administrators, LLC; Legends Pharmacy; TriadRx; and the former owners of Lake Side Pharmacy and related entities, agreed to pay $6,876,564 to resolve allegations that they violated the False Claims Act by waiving copays, charging the government higher prices than permitted, and trading federal healthcare business with other pharmacies.

“Waiving copays and charging the government higher prices leads to overutilization and costs federal programs millions of dollars in unnecessary spending,” said U.S. Attorney Ryan Buchanan. “Our office will continue to enforce the False Claims Act to recover government payments that result from such misconduct.”

“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. “The FBI will not stand by when there are allegations of companies operating corporate wide schemes to illegally line their pockets.”

“Fraud through compounding pharmacies bilked billions out of TRICARE and undermined the integrity of our healthcare system designed to care for our service members and their families,” stated Cynthia Bruce, Special Agent in Charge of the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service (DCIS).  “I appreciate the partnership among involved law enforcement agencies and the U.S. Attorney’s Office to bring this matter to justice.”

“The OPM OIG has no tolerance for businesses that knowingly take advantage of FEHBP, violating the rules to make a profit,” said Amy K. Parker, Special Agent in Charge, OPM OIG. “I am extremely proud of the hard work of our investigators, analysts, and other law enforcement partners because overcharging the government is not a victimless crime – it contributes to higher premium prices and harms the financial integrity of the FEHBP.”

“The U.S. Postal Service, Office of Inspector General, will continue to tirelessly investigate those who commit frauds against federal benefit programs and the U.S. Postal Service. This settlement is a clear message that the USPS OIG is dedicated to rooting out corruption and bringing to justice those responsible for these crimes, said Special Agent in Charge Matthew Modafferi of the U.S. Postal Service, Office of Inspector General Northeast Area Field Office. The USPS OIG would like to thank our law enforcement partners and the Department of Justice for their efforts in this investigation”.

“Health care providers that try to boost their profits by submitting fraudulent claims to Federal health care programs threaten the integrity of those programs and drive up prices for everyone,” said Tamala E. Miles, Special Agent in Charge with the U.S. Department of Health and Human Services Office of Inspector General. “We work tirelessly alongside our law enforcement partners to protect the integrity of Federal health care programs and to ensure the appropriate use of taxpayer dollars.”

The government alleged that in 2012, pharmacy DermaTran Health Solutions, LLC (“DermaTran”), opened in Rome, Georgia, for the purpose of making and selling custom “compound” pain creams. DermaTran’s owners during the relevant time include DIII Consulting, LLC; SRM Holdings, LLC; Gussenhoven Holdings, LLC; Sam Moss; and Robert Gussenhoven. At the same time, another company named Pharmacy Insurance Administrators, LLC (“PIA”), was created to handle the billing for DermaTran. During the relevant time, PIA was a subsidiary of Insurance Administrative Solutions, LLC; which was a subsidiary of Gulfcoast Administrators, LLC; which was majority-owned by Life & Health Holdings, Inc.; which was a subsidiary of State Mutual Insurance Company.

Compound pain creams were very lucrative. Government-backed health insurance programs such as TRICARE (for the military) and the Federal Employees Health Benefits Program (for federal workers) would reimburse hundreds of dollars for these prescriptions. But the government programs imposed certain restrictions to limit spending. For example, patients were required to contribute to the cost of the prescription in the form of copays. The government programs also limited payments to the “usual and customary price”—the price charged to a cash-paying, uninsured patient.

The Government alleged that DermaTran and PIA found ways to avoid these restrictions. DermaTran and PIA created a copay-waiver program where patients would have their copays waived based on a brief, unverified statement of economic need. DermaTran and PIA also misled the government programs about the price being charged to uninsured, cash-paying patients by falsely stating that that price was high when, in fact, it was only $30. As a result, there were days that veterans were charged $600+ for pain creams, while uninsured patients were charged only $30.

Eventually, various auditors uncovered these problems and began to terminate DermaTran from their networks. The Government alleged that DermaTran, looking for a way to continue to earn money, began selling its out-of-network prescriptions to other pharmacies. The other pharmacies could fill the prescriptions because they were still in network. After filling the lucrative prescriptions, the other pharmacies remitted a portion of the proceeds to DermaTran and PIA. The government alleged that this arrangement constituted an illegal kickback. The other pharmacies that participated in this prescriptions-for-money scheme included Legends Pharmacy (in Texas), Lake Side Pharmacy (in Alabama), and TriadRx (in Alabama).

The Government’s False Claims Act claims based on the above allegations are being settled. PIA will contribute $6.5 million to the settlement. DermaTran is no longer operating and was sold in an arm’s-length transaction to a third-party buyer last year for the price of $40,000. That amount will be turned over to the government as part of the settlement. MLDP of Texas, LP (a/k/a “Legends Pharmacy”) will pay $59,293. TRIAD Rx, Inc. will pay $166,547. Lake Side Pharmacy is no longer in business, but former owners of Lake Side Pharmacy will pay $110,724. The former owners include Titan Medical Marketing, LLC; Donald Wayne Bogue; George Takashi Elkins; James Bernard Bogue, Jr.; Robert Joseph Puckett, Jr.; Robert Joseph Puckett, Sr.; Stephen Weston Wilson; and Charles Franklin Taylor, Jr.

This civil settlement resolves a lawsuit filed in the U.S. District Court for the Northern District of Georgia by a former accountant for DermaTran, under the qui tam, or whistleblower provisions, of the False Claims Act. United States ex rel. Doe v. DermaTran Health Solutions, LLC, et al., Civil Action No. 1:17-CV-1765.  Under the False Claims Act, 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 $1,434,775 from the settlements. PIA will also pay her attorney’s fees.

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

This case was investigated by the U.S. Attorney’s Office for the Northern District of Georgia, the FBI, the Defense Criminal Investigative Service, the US Office of Personnel Management – Office of the Inspector General, the U.S. Postal Service – Office of Inspector General, and the Health and Human Services – Office of Inspector General.

The civil settlement was reached by Assistant U.S. Attorney Anthony DeCinque.

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 - Gilberto Lopez-Giraldo, Raul Lopez-Giraldo, Guillermo Escobar, and Alexander Duque-Casanova have been sentenced for engaging in a more than $1.4 million drug money laundering conspiracy involving major cities from across the United States to Cali, Colombia.

“Illegal drug proceeds provide the critical lifeblood for drug traffickers,” said U.S. Attorney Ryan K. Buchanan. “Our office is committed to disrupting the ability of international drug cartels to profit from their illegal activities by seeking to evade law enforcement detection through money laundering operations conducted within the United States.”

“These criminals thought their scheme would go undetected and they could profit from their criminal activities, but they were wrong,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI, along with our Federal and international partners, is committed to dismantling these organizations no matter where they attempt to operate, and targeting their illicit proceeds is just one of our many tools.”

“This is a victory in the ongoing war against drugs trafficking,” said IRS-Criminal Investigation Special Agent in Charge James E. Dorsey.  “Concealed income will eventually come to light.  Coordination with other agencies and leveraging each of our strengths is the key in the fight against drugs trafficking and money laundering.  Thanks to the financial expertise and diligence of our agents, these criminals are now off the street and being held accountable for their actions.”

According to U.S. Attorney Buchanan, the charges and other information presented in court: Gilberto and Raul Lopez-Giraldo, Escobar, and Duque-Casanova were members of a money laundering crew based in Cali, Colombia, who conspired to coordinate the collection of money from drug traffickers in cities across the United States, including Atlanta, Chicago, and New York. The group laundered the money through a network of bank accounts in the United States and elsewhere.

The money from these accounts was used to purchase electronics and other goods in the United States then resold on the black market in Colombia. The purpose of this scheme was to secretly convert the drug money collected in the United States into Colombian pesos for drug trafficking organizations.

During the investigation, the defendants and their co-conspirators orchestrated the collection of illicit drug proceeds totaling approximately $1,496,817.

For example, during an undercover operation on November 21, 2012, investigators received $149,980 in U.S. currency from two conspirators who arrived in a truck in the parking lot of a store in Duluth, Georgia. The money was wrapped in bundles and hidden in a box inside a garbage bag. Agents conducting surveillance of the meeting followed the truck from the parking lot to a residence in Norcross, Georgia, that was later determined to be a methamphetamine conversion lab. Republic of Colombia authorities lawfully intercepted telephone conversations between the defendants and other conspirators related to the $149,980 in drug proceeds.

The defendants were later indicted on five counts of money laundering in the Northern District of Georgia, and, with cooperation of Colombian officials, arrested and extradited to the United States. On March 7, 2022, the defendants pleaded guilty to one count of conspiracy to commit money laundering and received the following sentences:

• Gilberto Lopez-Giraldo, 51, of Cali, Colombia, has been sentenced to five years, ten months in prison.
• Raul Lopez-Giraldo, 40, of Cali, Colombia, has been sentenced to five years in prison.
• Guillermo Escobar, a/k/a Memo, 54, of Cali, Colombia, has been sentenced to six years, six months in prison.
• Alexander Duque-Casanova, 48, of Cali, Colombia, has been sentenced to three years, ten months in prison.

The Court adjusted the sentence of each defendant downward by 12 months from these terms of incarceration to account for the length of time the defendants spent in custody in Colombia while awaiting extradition to the United States. One co-defendant, Harby Mayor-Mejia, remains at large outside the United States.

This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and Internal Revenue Service Criminal Investigation agents in Atlanta, Chicago, and Colombia.

Assistant U.S. Attorneys Nicholas N. Joy, Laurel Boatright Milam, and Tyler A. Mann 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.

ATLANTA – Anthony Mills, a former Atlanta gynecologist, and Raphael Ogunsusi, a licensed pharmacist who owned two pharmacies, have pleaded guilty for their roles in operating an Atlanta-area “pill mill” network that supplied addicts and drug dealers with large amounts of dangerous prescription drugs through illegal prescribing and dispensing.

“Mills and Ogunsusi are now admitted drug dealers who violated the public’s trust by engaging in black-market sales of staggering amounts of dangerous opioid pills,” said U.S. Attorney Ryan K. Buchanan.  “With opioid overdoses continuing to rise in Georgia, our office will continue to devote resources to prosecuting licensed professionals who fuel rather than help to stem the opioid epidemic.”

“The dispensing of addictive prescription pain medication under the guise of a doctor’s care isn’t about the good of the community or an individual’s specific health needs – it’s about greed,” said Robert J. Murphy, the Special Agent in Charge of the DEA’s Atlanta Field Division. “Individuals like these defendants who operated a ‘pill mill’ are nothing more than drug dealers who are licensed to wear white coats and carry stethoscopes. They will now face the consequences for their criminal actions.”

“These pleas should serve as a warning to any medical professional considering exploiting their patients for profit: you will be caught, you will be prosecuted, and you will pay a steep price,” said Lisa Fontanette, Assistant Special Agent in Charge IRS Criminal Investigation, Atlanta Field Office. “IRS-CI remains committed to working with our law enforcement partners to bring those seeking to enrich themselves at the expense of their patients, to justice.”

According to U.S. Attorney Buchanan, the charges and other information presented in court: Anthony Mills was a medical doctor licensed to practice medicine in the State of Georgia since 1997, and whose specialty was listed with the medical board as “Gynecology.”  Since at least October 2018, Mills operated a “pill mill” out of his personal residence, where he issued prescriptions for controlled substances (such as large quantities of oxycodone) to drug addicts and drug dealing “sponsors” in exchange for cash payments. Mills did not obtain necessary prior medical records of his “patients,” conduct physical exams, or do anything to establish a valid patient-physician relationship. Instead, he issued prescriptions in the names of individuals he never met or evaluated.  Some of the prescriptions that Mills issued were in the names of individuals whose identities had been stolen and others who were incarcerated or deceased at the time Mills wrote the prescriptions.

A large percentage of the illegitimate prescriptions written by Mills to drug-dealing sponsors were filled by licensed pharmacist Raphael Ogunsusi through his pharmacies, Evansmill Pharmacy and Retox Pharmacy.  Ogunsusi knew that Mills operated a pill mill out of his home, and that Mills prescribed in excess of medically appropriate dosages and combinations of controlled substances. But Ogunsusi nonetheless dispensed controlled substances pursuant to prescriptions issued by Mills and others, which Ogunsusi knew were issued without a legitimate medical purpose and outside the usual course of professional practice. 

Ogunsusi accepted large cash payments in exchange for filling these illegal prescriptions, including as much as $900 to fill just one prescription for oxycodone and $500 to fill one prescription for Percocet.  Ogunsusi knew these prices were well above the market value for legitimate prescriptions.  To disguise the significantly inflated prices that he was charging to dispense illegal controlled substance prescriptions, Ogunsusi falsified, and directed others to falsify, the pricing information on his pharmacy computers to give the appearance that he had charged market prices for the controlled substance prescriptions.  Ogunsusi also required sponsors to purchase a battery of additional non-controlled substances, which he referred to as the “Shebang,” as a condition for filling illegal controlled substance prescriptions.  The purpose of these non-controlled substances was to maximize profits for his illegal dispensing. Ogunsusi also directed his pharmacy employees, including another licensed pharmacist, to dispense the illegal prescriptions.

Ogunsusi also pled guilty to money laundering based upon his purchase of an airplane using the proceeds of his illegal drug dispensing and distribution.

In addition to Mills and Ogunusi, pharmacist Moses Kirigwi, as well as sponsors Brittany Tinker and Keandre Bates, pleaded guilty to conspiring with Mills and Ogunsusi.  Criminal charges remain pending against eight additional defendants.

Anthony Mills, 56, of Atlanta, Georgia, will be sentenced on February 7, 2023.  Keandre Bates and Moses Kirigwi will be sentenced on February 6, 2023.  Sentencing dates for Ogunsusi and Brittany Tinker have not yet been scheduled.

This case is being investigated by the Drug Enforcement Administration and Internal Revenue Service Criminal Investigation.

Assistant U.S. Attorneys David A. O’Neal and Laurel Boatright Milam are 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 – Kevin M. Gregory has pleaded guilty to conspiring with ex-wife and former Georgia Vocational Rehabilitation Agency counselor Karen C. Lyke to forge educational records and to create fake students with non-existent disabilities and illnesses, as part of their sophisticated, multi-year scheme to steal more than $1.3 million.  

“Gregory and Lyke exploited a government program designed to empower some of the most vulnerable Americans to achieve their educational and vocational goals,” said U.S. Attorney Ryan K. Buchanan.  “Driven by greed, Gregory and Lyke forged medical, educational, and financial records to invent sham students with non-existent disabilities, resulting in an elaborate conspiracy that swindled taxpayers out of more than $1.3 million.” 

“Gregory and Lyke stole money targeted for some of society’s most vulnerable. Their greedy actions also impact every taxpayer,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI, alongside our law enforcement partners, will continue to work tirelessly to hold accountable those who steal taxpayer funds.”

“Theft of government money a serious crime that deprives our most vulnerable citizens of vital assistance,” said State Inspector General Scott McAfee. “OIG will continue to uphold the integrity of state programs and ensure taxpayer dollars are used for their intended purpose.”

“The Georgia Vocational Rehabilitation Agency is committed to protecting the interests of Georgia’s taxpayers and our constituents. Therefore, we notified the Georgia Office of Inspector General as soon as we suspected fraud in this matter. We are also continuing to implement and refine protocols to prevent and catch such incidents of fraud even earlier to ensure both our clients and public funds are secure,” says GVRA Executive Director Chris Wells.

According to U.S. Attorney Buchanan, the charges, and other information presented in court: the State Vocational Rehabilitation Services Program is a federally funded program administered by the U.S. Department of Education that offers grant money to assist states to provide services to individuals with disabilities. To be eligible for the program, individuals must have a physical or mental impairment that results in a substantial impediment to employment and require services to achieve employment and to maximize career goals. Across the country, state vocational rehabilitation agencies offer various services to individuals with disabilities, including tuition assistance for vocational training and college education.

The Georgia Vocational Rehabilitation Agency (“GVRA”) operates Georgia’s vocational rehabilitation program. Between 2017 and 2020, the GVRA annually received at least $100,000,000 in federal funds. The GVRA’s Vocational Rehabilitation Program helped people with disabilities (known as “clients”) find and maintain employment, including by providing funding and tuition assistance for college education. 

During this time, the GVRA assigned counselors to assist its clients, including helping clients to obtain tuition assistance. To obtain tuition assistance, a client was required to provide the GVRA with documentation to support obtaining GVRA funds, including: (a) medical records demonstrating a disability related to employment, (b) a driver’s license, (c) proof of registration for classes, and (d) financial aid information. After receiving the information, the client’s GVRA counselor reviewed the documentation and, if the counselor approved the request for tuition assistance, mailed a check to the client for the requested educational expenses. From June 2015 to March 2019, Karen C. Lyke served as a GVRA counselor in its Norcross, Georgia office.  During the time of the conspiracy, Lyke and Gregory were married.

From approximately May 2016 to November 2020, Gregory and Lyke conspired to steal money from the GVRA by claiming educational expenses for approximately 13 fake students. Gregory and Lyke used the names of actual friends and relatives (including Gregory’s own name) as the names of the fake disabled students seeking tuition assistance from the GVRA.

Gregory and Lyke used the names of friends and relatives to fake medical records to create the appearance that the approximately 13 fake students qualified for tuition assistance from the GVRA. Gregory and Lyke claimed that these fake students suffered from disabilities or illnesses like AIDS, cancer, psychosocial impairments, or muscular dystrophy.

As proof of identification, Gregory and Lyke provided the GVRA with manufactured images of fake driver’s licenses that listed the names of their friends and relatives. In one instance, Gregory created a fake driver’s license in his cousin’s name by using a mug shot image of an unknown individual from the Internet as the driver’s license photograph.

Gregory and Lyke then used photo-editing software to alter authentic college transcripts, financial aid reports, and proofs of registration from actual GVRA clients to support claims that the fake students attended schools like the Georgia Institute of Technology, Georgia State University, or the University of Georgia. Lyke then uploaded the sham driver’s licenses, transcripts, financial aid reports, and other documentation into the GVRA’s electronic database.

Based on false documentation, Gregory and Lyke caused more than 230 checks to be mailed to approximately 13 friends and relatives for claimed educational expenses. In fact, none of the 13 fake students attended any of the purported colleges or universities.

The GVRA mailed the checks to post office boxes that Gregory and Lyke opened in their own names. After receiving the GVRA checks, Gregory and Lyke either deposited the GVRA checks into their own bank accounts, or gave the GVRA checks to their friends and relatives to be deposited. The friends and relatives funneled most of the GVRA funds back to Gregory and Lyke after depositing the GVRA checks.

After Lyke left the GVRA in March 2019, Gregory and Lyke continued to submit forged paperwork to the GVRA for non-existent educational expenses. Based on the false submissions, the GVRA issued checks to the fake students for bogus educational expenses. Gregory and Lyke used the stolen GVRA funds to pay for various personal expenses, including cars, jewelry, high-end guitars, and the down payment on a new home. In total, based on the false documentation they created, the GVRA mailed more than 230 checks to Gregory and Lyke resulting in the theft of approximately $1.3 million.

From approximately August 2016 to February 2019, Gregory and Lyke also conspired to steal several high-value computers from the GVRA. Using her position as a GVRA counselor, Lyke and Gregory stole multiple computers by submitting phony paperwork to the GVRA claiming that:

• Three genuine GVRA clients needed computers to further their educational goals when, in fact, the GVRA clients did not know that Lyke had ordered the computers under their names and never received the computers;

• Three fake students (that Gregory and Lyke invented) needed the computers to further their educational goals; and

• Gregory was a GVRA client who needed a computer to further his educational goals.

Gregory and Lyke arranged for at least six computers to be shipped to Lyke’s attention at the GVRA office in Norcross. Upon delivery, Lyke stole the computers and computer accessories from the GVRA. Gregory and Lyke then sold at least five of the computers on eBay using Gregory’s account. Gregory and Lyke kept one computer for personal use. In total, Gregory and Lyke stole at least seven computers with various accessories worth approximately $32,000.

Based on this conduct, the U.S. Attorney charged Kevin M. Gregory, 40, of Toledo, Ohio, in a criminal information with one count of conspiracy to commit federal program theft. Gregory pleaded guilty to that charge before U.S. District Judge J.P. Boulee.

On September 1, 2022, Karen C. Lyke, 37, of Toledo, Ohio, also pleaded guilty to one count of conspiracy to commit federal program theft.

The Federal Bureau of Investigation and Georgia Office of Inspector General are investigating the case. The Georgia Vocational Rehabilitation Agency also provided valuable investigative assistance.

Assistant U.S. Attorneys Jeffrey W. Davis and Jesika W. French 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 - Elvis Eghosa Ogiekpolor has been sentenced to 25 years in federal prison for money laundering and conspiracy to commit money laundering after being convicted at trial. Ogiekpolor opened and directed others to open at least 50 fraudulent business bank accounts that received over $9.5 million dollars from various online frauds, including romance frauds and business email compromise scams (“BECs”). He then laundered the fraud proceeds using other accounts, including dozens of accounts overseas.

“Ogiekpolor and his co-conspirators were part of a broader international network of online fraudsters and money launderers who wreaked havoc and devastation on unsuspecting individuals and businesses,” said U.S. Attorney Ryan K. Buchanan. “This case demonstrates our office’s unrelenting commitment to hold accountable those who prey on the vulnerabilities of victims and seek to exploit our nation’s banking system.”

“There is no way we can make the victims of Ogiekpolor and this network whole again, but we hope this sentence will at least give them solace that people are being held accountable,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI makes it a top priority to investigate these cyber-crimes and the greedy criminals behind them.”

According to U.S. Attorney Buchanan, the charges and other information presented in court: Beginning in at least October 2018 and continuing until August 2020, Ogiekpolor directed at least eight so-called “money mules” – including six who testified against him at trial – to open more than 50 fraudulent business bank accounts in Georgia in the names of a dozen sham companies. The sham companies did not occupy physical premises, earn legitimate income, or pay wages to employees. Ogiekpolor instructed the money mules to open multiple accounts at once and, if one bank closed an account for suspected fraud or other suspicious activity, to simply open additional fraudulent accounts at different banks. Ogiekpolor then provided the accounts to other co-conspirators to receive the proceeds from multiple romance frauds, BEC scams, and other frauds impacting dozens of victims in the U.S. and elsewhere, as well as multiple businesses.

Romance scams are a type of online fraud in which victims are targeted by individuals posing as potential paramours. The fraudsters create fake online dating profiles (often with photographs of attractive men or women) and use these fake personas to express strong romantic interest in the victims to entice them into sending money under false pretenses. Romance scams frequently target vulnerable individuals who possess significant financial assets, such as retired widows or widowers. In Ogiekpolor’s case, unsuspecting victims would typically wire funds directly into one of his fraudulent accounts, or mail checks or cash to Ogiekpolor’s money mules in Georgia. Once the fraud proceeds posted to his accounts, Ogiekpolor laundered the funds, including wiring hundreds of thousands of dollars to overseas accounts, and withdrawing substantial amounts in cash and cashier’s checks.

Multiple romance fraud victims, mainly women, testified at trial. The victims recounted how they met male strangers online and were soon convinced they were in a romantic relationship with the men, even though the victims were in communication with the individuals for months without meeting in person. Often these men claimed they wanted to start a life with the victims and were eager to live with them as soon as some kind of issue was resolved. For example, one romance fraud victim was convinced to wire $32,000 to one of the accounts Ogiekpolor controlled because her “boyfriend” (one of the men online) claimed a part of his oil rig needed to be replaced but that his bank account was frozen. This victim borrowed against her retirement and savings to provide the funds, which ultimately required her to refinance her home to pay back the loan. Another victim testified that she was convinced to send nearly $70,000 because the man she met on eHarmony claimed to need money to promptly make payment on several invoices due to a frozen bank account. The 13 romance fraud victims who testified at trial represented just a small number of such victims who were defrauded into sending money to Ogiekpolor’s accounts. 

BEC scams also commonly involve an employee of a company who has been fooled into responding to email messages that appear to be, but are not, legitimate (“spoof emails”). At trial, the jury heard from several businesses – representing just a small sample of the total number of companies defrauded – who had been victimized by spoof emails. In each case, the victim-business believed it was making a payment, often several hundreds of thousands of dollars, to a long-standing vendor only to subsequently learn that they had been tricked into sending the money to an account controlled by Ogiekpolor and thereby defrauded.  

In addition to Ogiekpolor, several of his co-conspirators have been convicted of conspiracy to commit money laundering in connection with this case, including:

1. Vere Whyte, 35, of Stone Mountain, Georgia, who pleaded guilty on November 15, 2021;
2. Kutina Crawford, 49, of Lithonia, Georgia, who pleaded guilty on May 2, 2022;
3. Ebony Parks, 28, of Jonesboro, Georgia, who pleaded guilty on May 11, 2022;
4. Tiffany Gaines, 42, of Conyers, Georgia, who pleaded guilty on May 16, 2022; and
5. Tamara Gaines, 48, of Conyers, Georgia, who pleaded guilty on July 11, 2022.

Elvis Eghosa Ogiekpolor, 46, of Norcross, Georgia, was sentenced by U.S. District Judge William M. Ray, II, to 25 years in prison to be followed by three years of supervised release. The Court will schedule a hearing for a later date at which time it will determine the amount of restitution that Ogiekpolor owes. He was charged by a federal grand jury in February 2022 with one count of conspiracy to commit money laundering and 15 counts of substantive money laundering. A federal jury convicted him of these charges on May 31, 2022, following an eight-day trial.

The U.S. Attorney’s Office for the Northern District of Georgia is part of the Department of Justice Transnational Elder Fraud Strike Force. The Strike Force focuses on investigating and prosecuting defendants associated with foreign-based fraud schemes that disproportionately affect American seniors.  These include romance scams, phone scams, mass-mailing fraud schemes, and tech-support fraud schemes.  For further information on these scams, see https://www.justice.gov/elderjustice/senior-scam-alert.

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

Assistant U.S. Attorneys Alex R. Sistla and Radka T. Nations 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 - Kyle Self has been sentenced for defrauding the IRS through the submission of false tax returns on behalf of clients.

“Kyle Self scammed the American taxpayers to enrich himself by illegally inflating the amount of tax refunds due to his clients,” said U.S. Attorney Ryan K. Buchanan. “This case serves as a stark warning to other corrupt tax preparers that we will find and prosecute those who exploit the tax system for their personal gain.”

“By submitting fraudulent tax returns Self took advantage of the tax system ultimately for his benefit,” said IRS-Criminal Investigation Assistant Special Agent in Charge Lisa Fontanette. “IRS-Criminal Investigation is committed to investigating tax fraud and other financial crimes and making sure those who abuse the tax system to enrich themselves are brought to justice. We also want taxpayers to choose their tax preparer wisely and look for preparers that will review the return with you. Taxpayers should be wary of any individuals promoting and using schemes to submit false filings to IRS.  Should you come across such a scheme, please report it to IRS Criminal Investigation.”

According to U.S. Attorney Buchanan, the charges and other information presented in court: Self owned and operated a tax preparation business called DeKalb Tax Services, LLC, which also operated under the names “Tax Shield” and “Instant Tax.” Self filed false tax returns on behalf of his clients between 2015 and 2018 to generate fraudulent tax return payments. Self falsified information related to Schedule Cs, IRA deductions, tuition deductions, capital losses, and head of household filing status, which resulted in a loss to the IRS of $428,175. 

For one taxpayer, for example, Self falsely included numerous false statements to inflate her return, claiming that she incurred capital losses on investments, which did not exist. Self fraudulently claimed IRA deductions for the same taxpayer, even though she had no IRA account. Self further claimed deductions for tuition and fees, even though neither the taxpayer nor her son attended school. Self claimed that the taxpayer suffered business losses related to her work as an Uber driver, a job which she had never held. Self also fraudulently reported that the taxpayer’s son was disabled. Self kept much of the money for himself after generating the fraudulently inflated returns.

Kyle Self, 48, of Atlanta, Georgia, has been sentenced to one year, six months in prison to be followed by one year of supervised release and ordered to pay restitution in the amount of $422,936. Self was convicted on these charges on January 11, 2022, after he pleaded guilty.

This case was investigated by the Internal Revenue Service Criminal Investigation.

Assistant U.S. Attorney David A. O'Neal 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 – A federal jury in Atlanta convicted a South Carolina man of fraudulently obtaining a $300,000 forgivable Paycheck Protection Program (PPP) loan guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

“During the depths of the pandemic, Travis Crosby decided to steal federal relief funds meant to help struggling businesses,” said U.S. Attorney Ryan K. Buchanan.  “Crosby has now been convicted of fraud in Atlanta’s first PPP fraud trial and will soon be sentenced for his theft.”

“Crosby’s personal greed affects every tax paying citizen in this country and took away from government funds intended to provide relief to small business and employees who desperately needed it during the pandemic,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “This conviction serves as a message that the FBI and our federal partners remain vigilant to make sure funds provided by programs like PPP are used as intended.”

“The Treasury Inspector General for Tax Administration will aggressively pursue those who attempt to defraud the Coronavirus Relief and Economic Security Act and its Paycheck Protection Program, which was created to assist legitimate business owners during the pandemic,” said J. Russell George, the Treasury Inspector General for Tax Administration.  “We appreciate the efforts of our law enforcement partners and the US Attorney’s Office to ensure this criminal activity is held to account.”

“Conspiring to defraud SBA robs the nation of vital resources intended to support the nation’s small businesses,” said SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite. “OIG remains committed to rooting out bad actors and protecting the integrity of SBA programs every day. I am continually grateful to the U.S. Attorney’s Office for its leadership and dedication to shining a light on darkness wherever it may be.”

According to U.S. Attorney Buchanan, the charges and other information presented in court:  Travis Crosby conspired to submit a PPP loan application on behalf of Crosby’s company, Faithful Transport Services LLC (Faithful Transport). The loan application falsely inflated the number of employees and average monthly payroll for Faithful Transport, inducing a larger PPP loan than Crosby could legitimately obtain. Crosby and a co-conspirator also caused the submission of a forged tax document to support the false statements in the loan application. Crosby then engaged in a series of sham transactions with various individuals to make it appear that he was paying them payroll for work at Faithful Transport when, in reality, these individuals returned the vast majority of the funds to Crosby.

Crosby is the 11th defendant to be convicted as part of the Justice Department’s prosecution of a $3 million, Atlanta-based PPP fraud ring. Previously, 10 other members of the scheme were charged by the U.S. Attorney’s Office for the Northern District of Georgia and the DOJ Fraud Section. All other defendants pleaded guilty prior to trial. To date, authorities have recovered approximately $1.2 million of the stolen money.

Travis Crosby, 32, of Wellford, South Carolina, was convicted of conspiracy to commit bank fraud, bank fraud, making a false statement to a bank, and money laundering. He is scheduled to be sentenced on January 10, 2023.

Since the inception of the CARES Act, the Fraud Section has prosecuted over 150 defendants in more than 95 criminal cases and has seized over $75 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.

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 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 via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

The FBI Atlanta Field Office; the SBA-OIG; and the TIGTA investigated the case.

Assistant U.S. Attorney Christopher J. Huber for the Northern District of Georgia, Trial Attorney Matthew Reilly of the Criminal Division’s Fraud Section are prosecuting the case.  Special Assistant U.S. Attorney Diane D. Schulman for the Northern District of Georgia and Trial Attorney Michael P. McCarthy of the Criminal Division’s Fraud Section provided significant assistance.

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. - Ralph Haywood Jones, Jr., has been sentenced after shooting two women on June 10, 2019, including his ex-girlfriend – the mother of his children – whom he shot, kidnapped, and drove to South Carolina where he abandoned her in a parking lot without seeking medical attention. Jones left the other woman, a friend of his ex-girlfriend, lying in a driveway in Winder, Georgia, and bleeding from a gunshot wound to the abdomen.

“Jones’s horrific violence resulted in significant trauma to his victims, their families, and his children,” said U.S. Attorney Ryan K. Buchanan.  “Fortunately, the quick response of our local law enforcement partners prevented the victims’ deaths.  The intersection of domestic and firearms violence poses a serious risk to public safety and remains a top priority for our office and federal, state, and local law enforcement.”

“The only thing to be thankful for after Jones’s reign of terror is that no one was killed, even though he showed a disregard for human life,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Through the Project Safe Neighborhoods initiative, the FBI will continue to work with our partners to save lives and remove violent offenders from our streets.”

“This investigation represents a great example of several layers of agencies working together to help protect our citizens and help bring justice to victims of a terrible violent crime. Officers and medical responders of local agencies in Georgia initially responded and then collaborated with officers in South Carolina and helped get treatment for the injured and arrest Jones. During the investigation, federal authorities became involved to assist in the investigation and the US Attorney’s office persistently pursued a strong prosecution. A great team effort of multiple agencies. The Winder Police department appreciates the teamwork. Because of these efforts, a violent offender is taken off the streets,” said Chief Jim Fullington, Winder Police Department.

“Cooperation between law enforcement agencies is critical to citizen safety and the events of June 10th, 2019, demonstrates that,” according to Oconee County Sheriff Mike Crenshaw.  “After receiving information from the Winder Police Department that a suspect in a crime from their jurisdiction may be located in Oconee County, SC, we located the victim in a vehicle in the parking lot of the store in Fair Play.  Based on information we had obtained, Jones was located just down the road and was arrested and charged with a being a Fugitive from Justice in our County.  The Sheriff's Office also assisted Winder Police with obtaining a search warrant for the vehicle.  The importance of cooperation between law enforcement agencies cannot be overstated and we are grateful that Jones is being held accountable for the crimes he has committed.”

According to U.S. Attorney Buchanan, the charges and other information presented in court: On June 10, 2019, Ralph Jones and his ex-girlfriend were scheduled to visit their children during a supervised visitation. His ex-girlfriend asked a friend to accompany them on the trip because she did not want to be left alone with Jones during the car ride.

As the trio prepared for the drive, Jones shot the friend of his ex-girlfriend in the abdomen and left her lying in a driveway in Winder, Georgia.  He also shot his ex-girlfriend in the back of the neck. Jones drove his ex-girlfriend to Fair Play, South Carolina, where he abandoned her, along with his car, in a store parking lot.  Officers found her bleeding and incoherent from the gunshot wound.  Jones was arrested hiding in bushes near the store.

Ralph Haywood Jones, Jr., 30, of Winder, Georgia, has been sentenced to 25 years in prison to be followed by five years of supervised release.  Jones pled guilty to kidnapping on April 18, 2022.

This case was investigated by the Federal Bureau of Investigation, the Winder Police Department, and the Oconee County, South Carolina Sheriff’s Office.

This case was brought as part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.

Assistant U.S. Attorney Jennifer Keen 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 - Shenita Daniel and Wayne A. Lowe, Jr., have been indicted for allegedly using numerous stolen identities to fraudulently claim Unemployment Insurance (“UI”) benefits under fictitious employer accounts registered with the Georgia Department of Labor. The scheme resulted in the fraudulent payment of more than $1.5 million in UI benefits, including Pandemic Unemployment Assistance and Lost Wage Assistance – programs that were created and expanded to assist individuals experiencing unemployment due to the COVID-19 pandemic.                                                                                                      

“During the height of the pandemic in 2020, criminals exploited the availability of COVID-19 unemployment benefits to illegally enrich themselves,” said U.S. Attorney Ryan K. Buchanan.  “The defendants allegedly used the identities of numerous victims to illegally obtain proceeds meant to help citizens who desperately needed these funds to support themselves and their families during a time of emotional and economic crisis. In doing so, hey diverted more than $1.5 million in government benefits.” 

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

“The defendants share one trait in common – greed,” said Special Agent in Charge James E. Dorsey, IRS Criminal Investigation, Atlanta Field Office.  “Their desire for money, power and material items, drove them to perpetrate crimes against our unemployment insurance system and prey upon many individuals within our community.  The financial expertise and diligence of IRS-CI special agents and partnership with other federal and state law enforcement officers we collectively uncovered these schemes, and now these criminals face the consequences of their actions.”

Dr. Joseph V. Cuffari, Inspector General of the Department of Homeland Security, stated, “The DHS Office of Inspector General will continue to prioritize investigations of individuals who take advantage of programs meant to help those in need and work with our law enforcement partners to bring those who commit fraud to justice.”       

“These two individuals stole money from the COVID-19 unemployment insurance program during the pandemic for their own financial gain,” said Tommy D. Coke, Inspector-in-Charge of the Atlanta Division, U.S. Postal Inspection Service. “The U.S. Postal Inspection Service remains committed to working with our law enforcement partners to investigate and prosecute individuals who exploited this program which was designed to assist hard working Americans that were suffering from financial hardships.” 

“Along with being tasked by the federal government to provide financial assistance to those unemployed through no fault of their own, it is equally important for our agency to uphold the integrity of the program by monitoring each of the stakeholders for truthful and accurate information,” said Georgia Labor Commissioner Mark Butler. “We were glad to be a partner in potentially bringing justice to an unjust situation meant to extort state and federal dollars for wrongful gain.”

According to U.S. Attorney Buchanan, the charges, and other information presented in court: Starting in June 2020, Shenita Daniel and Wayne A. Lowe, Jr. allegedly created several fictitious employer accounts with the Georgia Department of Labor. Through these accounts, they submitted false information to the Georgia Department of Labor that was used, in part, to determine whether persons associated with the employer were entitled to receive benefits. This information included the names and personal identifying information for purported employees, which were actually stolen identities of individuals who had no knowledge of the scheme and did not consent to the use of their information. Daniel and Lowe also allegedly submitted false hiring dates and false quarterly wage information for the purported employees.

Within a few days of creating these fictitious employer accounts, claims for UI benefits were allegedly submitted to the Georgia Department of Labor using the stolen identities of persons listed as purported employees of the sham companies. 

In addition to filing fraudulent claims for UI benefits in Georgia, Daniel and Lowe allegedly used some of the same stolen identities to submit fraudulent claims for UI benefits in California.

The Georgia Department of Labor approved and paid UI claims through the issuance of debit cards mailed to various addresses in the metro-Atlanta area. The Georgia Department of Labor paid more than $1.5 million in UI benefits as a result of the scheme.

Daniel and Lowe allegedly withdrew the fraudulently obtained proceeds through transactions at retail stores, restaurants, and ATM cash withdrawals. Starting in December 2020, they began making large monthly cash deposits of the fraud proceeds into a bank account for a company called Simplicity Cares LTD. Daniel was listed as the company’s Chief Executive Officer, and Lowe was listed as the company’s Chief Financial Officer.

Prior to December 2020, Daniel and Lowe never received payroll payments from this bank account. Daniel and Lowe allegedly started making payroll payments to themselves after the large cash deposits began. 

The indictment charges Shenita Daniel, 42, of Atlanta, Georgia, and Wayne A. Lowe Jr., 43, of Union City, Georgia, with conspiracy, mail fraud, wire fraud, aggravated identity theft, and conspiracy to commit money laundering. 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.

This case is being investigated by the U.S. Department of Labor – Office of Inspector General, the Internal Revenue Service Criminal Investigation, the U.S. Department of Homeland Security (“DHS”) – Office of Inspector General, and the United States Postal Inspection Service. Special assistance was provided by the Georgia Department of Labor and the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.

Assistant U.S. Attorneys Tracia M. King and Kelly K. Connors are prosecuting the case.

This investigation was sponsored by the Georgia Unemployment Insurance Fraud Task Force. The mission of the Task Force is to combat fraud schemes targeting the Unemployment Insurance Benefits program, which is federally and state funded, and administered by the Georgia Department of Labor.

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

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 – Former City of Atlanta Director of Human Services, Mitzi L. Bickers, has been sentenced to 14 years in prison for accepting approximately $3 million in bribe money to influence government contracts, money laundering, lying to the City of Atlanta to maintain her salary and cabinet-level position, and failing to disclose more than $600,000 in income on her federal tax return. 

“For years, Mitzi Bickers masterminded a sophisticated scheme to steer City of Atlanta contracts worth millions of dollars to two businessmen,” said U.S. Ryan K. Buchanan.  “By abusing her position, power, and connections, Bickers corrupted the City’s procurement practices, creating a pay-to-play environment where bribe money was rewarded over merit and quality of work.  Bickers’ substantial prison sentence serves as a blistering message to anyone tempted to sell the public’s trust for a lake home or an SUV and serves as a reminder that law enforcement officers remain committed to the investigation of corrupt public officials.”

“The actions of Mitzi Bickers not only traded the public’s trust for personal gain, but this was also a shame to her oath of office and her duty to the City of Atlanta. This sentence demonstrates no one is above the law,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Together with our law enforcement partners, the FBI will continue to investigate public officials and those who wish to wrongly influence public officials for personal gain.”

“High ranking City officials hold positions of power and trust not only in their official capacity but also in the eyes of the public. That trust is broken when such officials abuse their power and commit crimes,” said James E. Dorsey, IRS-Criminal Investigation Special Agent in Charge. “Mitzi Bickers failed to uphold the trust and duty bestowed to her by the taxpayers of the City of Atlanta, to serve the public’s interest and not her own. Bickers chose a lakefront home over the best interest of the people of Atlanta.”

According to U.S. Attorney Buchanan, the charges, and other information presented in court: While with the City of Atlanta as its Director of Human Services and after leaving the City as a claimed “business consultant,” Bickers accepted more than $2.9 million in bribe payments directly and on behalf of other public officials to steer valuable contracts to businessmen Elvin R. Mitchell, Jr. and Charles P. Richards, Jr.

From February 2010 to May 2013, Bickers served as the City of Atlanta’s Director of Human Services.  Even though she held a high-level position with the City, Bickers sold sensitive, non-public information to Mitchell and Richards that was critical to their ability to obtain certain valuable contracts.  In effecting the bribery scheme, Bickers accepted money in two distinct ways: (1) Mitchell and Richards paid Bickers “up-front” money, where Bickers arranged for Mitchell and Richards to pay her bribe money in advance of the work to secure the award of a contract; and (2) Mitchell and Richards paid Bickers “kick-backs,” where Bickers instructed Mitchell and Richards to inflate the cost of their work with the City so that Mitchell and Richards could then pay Bickers a percentage of what they earned.  Between 2010 and 2013, Mitchell’s and Richards’s companies received City of Atlanta contracts worth millions of dollars for emergency snow removal, sidewalk repair and maintenance, and bridge reconstruction.

In an effort to conceal her relationship with Mitchell and Richards, Bickers filed numerous false City of Atlanta Financial Disclosure forms.  For example, Bickers swore under penalty of perjury that in 2011, she engaged in no financial relationships with any outside businesses and did not receive more than $5,000 in income from any outside sources.  In fact, Bickers had accepted more than $600,000 in bribe money from Mitchell and Richards during that period.

In 2011, Bickers used most of this bribe money to purchase a $775,000 lakefront home in Jonesboro, Georgia. In that same year, Bickers lied on her federal income tax return by claiming that she earned only $57,896 (resulting in a tax refund of $3,924).  In fact, in 2011, Bickers had accepted over $600,000 in bribe payments and owed the IRS more than $200,000 in taxes.

In 2013, the media exposed Bickers’s financial ties to the political consulting firm Pirouette Companies (which was incorporated by Bickers’s girlfriend but operated by Bickers). Shortly thereafter, Bickers resigned her position with the City of Atlanta.  After leaving the City of Atlanta, Bickers continued to receive millions of dollars in bribes from Mitchell and Richards to obtain additional City of Atlanta contracts.  Bickers spent the proceeds of the bribery scheme on luxury merchandise and travel, four Yamaha jet skis, and a GMC Acadia Denali.

Ultimately, between 2010 and 2014, Bickers accepted more than $2.9 million in bribe money from Mitchell and Richards to secure several lucrative City of Atlanta contracts.  In this same period, the City of Atlanta paid Mitchell’s and Richards’s businesses at least $15 million for these government contracts.

On October 22, 2018, a Federal grand jury returned a 12-count Superseding Indictment charging Mitzi Bickers with conspiratorial and substantive bribery, wire fraud, money laundering, obstruction of justice, and tax fraud offenses. 

On March 23, 2022, after an approximately two-week trial, a jury convicted Bickers of nine of the 12 counts, including conspiracy to commit bribery, wire fraud, money laundering, and filing a false tax return. The jury acquitted Bickers on two counts of bribery and one count of obstruction.

U.S. District Judge Steve C. Jones sentenced Mitzi L. Bickers, 57, of Atlanta, Georgia, to 14 years in prison, three years of supervised release, and ordered her to pay $2,955,106 in restitution to the City of Atlanta.  Bickers also forfeited to the government her lake home, a GMC Acadia Denali, and four Yamaha jet skis because Bickers purchased these items with the proceeds from the bribery conspiracy. 

• Elvin R. Mitchell Jr., 68, of Atlanta, Georgia, pleaded guilty to conspiratorial bribery and money laundering and was ultimately sentenced to four years in prison.

• Charles P. Richards Jr., 70, Tucker, Georgia, pleaded guilty to conspiratorial bribery and was ultimately sentenced to one year, eight months in prison.

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

Assistant U.S. Attorneys Jeffrey W. Davis, Nathan P. Kitchens, Tiffany R. Dillingham, and Kelly Connors prosecuted the case. The case was previously prosecuted by former U.S. Attorney Kurt R. Erskine.

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 - Twenty-five defendants, including three of the seven founders of the Ghostface Gangsters Gang (“GFG”), have pleaded guilty to multiple charges, including Racketeer Influenced and Corrupt Organization Act (RICO) conspiracy, conspiracy to distribute a controlled substance, attempted murder, maiming, possession of a controlled substance with intent to distribute, use of a firearm during a crime of violence, use of a firearm during a drug trafficking crime, and possession of a firearm in furtherance of a drug trafficking crime.

“On the street and from behind bars, Ghostface Gangsters have trafficked drugs and orchestrated and perpetrated horrific acts of violence,” said U.S. Attorney Ryan. K. Buchanan. “Thanks to the tireless and coordinated efforts of our federal, state, and local law enforcement partners, 25 gang members and associates charged in this case have pleaded guilty, including three of the men who created this dangerous criminal organization.”

“ATF will continue to dedicate federal resources in conjunction with those crucial law enforcement contributions of local agencies to the pursuit of eradicating and forestalling criminal gang activity,” said ATF Assistant Special Agent in Charge, Atlanta Field Division, Beau Kolodka.

“The Cobb County Police Department is proud of the work of our investigators and civilian staff who work hand in hand with other local, state, and federal agencies in these types of cases. The perseverance and diligence required of such interagency cooperation is what is necessary to ensure such violent criminals are charged and prosecuted accordingly. We remain dedicated to protecting our citizens and bringing to justice those who would seek to do them harm.  In this particular case, Cobb County Police investigators worked long hours and gathered an inordinate amount of evidence to help secure this indictment. We are especially proud of the sincere dedication of all involved. And we vow to continue to work in such a fashion on future cases as well,” said Cobb County Police Chief Stuart VanHoozer.

According to U.S. Attorney Buchanan, the charges and other information presented in court: GFG, a whites-only gang, was originally organized in or about 2000 in a Georgia county jail. Within GFG, the seven founding members are known as “pillars.” All GFG members trace their gang “bloodline” directly back to one of the pillars. GFG members and associates engaged in drug distribution and acts of violence involving murder, kidnapping, assault, and witness intimidation. GFG operated both within and outside the Georgia prison system.

Within the past year, three GFG pillars charged in the case have been convicted and will be, or have been, sentenced by U.S. District Judge Michael L. Brown as follows:

• On August 25, 2022, Jeffrey Alan Bourassa, a/k/a “JB,” “Babyface,” and “Kid,” 40, of Cobb County, Georgia, a GFG founding pillar, pleaded guilty to conspiracy to commit racketeering.  He is scheduled to be sentenced on October 25, 2022.

• On July 22, 2021, David Gene Powell, a/k/a “Davo,” 45, of Cobb County, Georgia, a GFG pillar, pleaded guilty to conspiracy to commit racketeering. On February 23, 2022, Powell was sentenced to four years, one month of imprisonment.

• On June 9, 2021, Joseph M. Propps, Jr., a/k/a “JP,” 44, of Smyrna, Georgia, a GFG pillar, pleaded guilty to conspiring to distribute at least 500 grams of methamphetamine. On October 5, 2021, Propps was sentenced to 10 years, one month of imprisonment.

Earlier during the case:

• On September 22, 2021, Victor Manuel DeJesus, a/k/a/ “VG Vic,” 40, of Gwinnett County, Georgia, pleaded guilty to conspiracy to commit racketeering and using a firearm during a crime of violence. The latter charge arose from a 2016 incident during which DeJesus violently carjacked a woman at gunpoint and threatened to kill her. He took the car and picked up co-defendant Christopher Marlow, a/k/a “Loco,” 43, of Marietta, Georgia. Together, they fled from a Cobb County deputy sheriff. DeJesus shot at the deputy from inside the car and discarded the gun through a window. DeJesus was sentenced to 25 years of imprisonment in connection with the shooting and his role in the RICO Conspiracy. Marlow was sentenced to 20 years of imprisonment for attempted murder and aiding and abetting DeJesus’s discharge of a firearm.

• On August 24, 2021, Richard Brian Sosebee, a/k/a “Dirty,” 47, of Hall County, Georgia, pleaded guilty to conspiracy to commit racketeering and using a firearm during a drug trafficking crime. The latter charge arose from a 2016 incident during which Sosebee shot a victim in the eye during a drug deal gone bad, causing the victim permanent injury. He was sentenced to 22 years of imprisonment on December 7, 2021.

• On July 22, 2021, Jennifer Barteski, 37, of Conyers, Georgia, a GFG associate, pleaded guilty to possession of methamphetamine with intent to distribute and possession of a firearm in furtherance of that crime. She was sentenced on November 18, 2021, to seven years in prison.

• Between February 19, 2019 and April 26, 2021, Cody Ryan Todd, 32, of Carroll County, Georgia, Timothy Wilkins, a/k/a “Dino,” 36, of Woodstock, Georgia, Jonathan Stubbs, 33, of Hamilton County, Tennessee, William J. Goodman, 28, of Paulding County, Georgia, Brie Dewitt, 45, of Woodstock, Georgia, Toby James Ogletree, 47, of Spalding County, Georgia, and Kevin Scott Sosebee, a/k/a “Sosa,” 31, of Cobb County, Georgia, pleaded guilty to RICO conspiracy. Ogletree also pleaded guilty to conspiring to distribute and possess with intent to distribute controlled substances. Sosebee, who was sentenced to 24 years of imprisonment, also pleaded guilty to discharging a firearm in connection with a 2017 incident during which he shot four times at a Cobb County police officer. The officer was pursuing Sosebee from inside a police vehicle, swerved to avoid the bullets, and avoided injury.

• Between August 10, 2018 and March 5, 2020, GFG members Mark Avon Lefevre, a/k/a “Ghost,” 37, of Cobb County, Georgia, Christopher Lasher, a/k/a “Retta,” 39, of Marietta, Georgia, Christopher Steven Jones, a/k/a “Red,” 39, of Canton, Georgia, Samantha Miller, 31, of Cobb County, Georgia, Genevieve Waits, 40, of Cleveland, Ohio, Kayli Brewer, 31, of Cobb County, Georgia, Brittany Nicole Jones, 35, of Rockdale County, Georgia, and Hailey Sizemore, 32, of Douglas County, Georgia, pleaded guilty to conspiring to distribute and possess with intent to distribute controlled substances, including methamphetamine, cocaine, marijuana, and Xanax.

• On December 5, 2019, Christopher Jarman Davis, 32, of Walker County, Georgia pleaded guilty to maiming another GFG member. While co-defendant Jonathan Stubbs held the other gang member at gunpoint, Davis used an axe to slice a GFG tattoo off that other gang member’s chest as a punishment for violating gang rules.

• On October 4, 2018, Randall Arthur Lee Chumley, 40, of Jasper, Georgia pleaded guilty to possession of methamphetamine with intent to distribute and possession of a firearm in furtherance of a drug trafficking crime and was sentenced on December 10, 2020, to 160 months of imprisonment.

• On April 20, 2018, Kelly Ray Shiflett, 34, of Rome, Georgia pleaded guilty to possession of a firearm by a convicted felon.

This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Cobb County Police Department, along with assistance from the Georgia Department of Corrections and the following law enforcement agencies: Marietta Cobb Smyrna (MCS) Organized Crime Task Force and Narcotics Unit, Cobb Anti-Gang Enforcement (CAGE) Unit, Cobb County Sheriff’s Office, Marietta Police Department, Cherokee County Sheriff’s Office, Ball Ground Police Department, Douglas County Sheriff’s Office, Douglasville Police Department, Federal Bureau of Investigation, Floyd County Sheriff’s Office, Floyd County Police Department, Rome/Floyd Metro Task Force, Carrollton Police Department, Gainesville Police Department, Pickens County Sheriff’s Office, Jefferson County (Alabama) Sheriff’s Office, Georgia Department of Community Supervision, Walton County Sheriff’s Office, Newton County Sheriff’s Office, Covington Police Department, Drug Enforcement Administration, Murray County Sheriff’s Office, and the Catoosa County Sheriff’s Office.

Assistant U.S. Attorneys Theodore S. Hertzberg and Erin N. Spritzer of the Northern District of Georgia and Trial Attorney Kristen S. Taylor of the Justice Department’s Organized Crime and Gang Section are prosecuting the case, which was investigated and initiated by former Assistant U.S. Attorneys Katherine M. Hoffer and Jolee Porter.

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 - Derrick Hunt has been sentenced for producing child pornography. Hunt concealed a 13-year-old girl at his apartment for three weeks in the summer of 2012 and recorded his sexual encounters with her.

“Hunt assaulted a vulnerable young girl by plying her with drugs and alcohol in order to sexually abuse her,” said U.S. Attorney Ryan K. Buchanan. “Sexual predators use every opportunity, including leveraging social media platforms, to lure children into these kinds of exploitive situations. The experience of this victim and her family is the kind of nightmare scenario for unsuspecting parents that we encourage citizens to try to avoid through vigilant monitoring of their children’s social media activities.”

“Predators like Hunt have no place in civilized society. Their victims, in this case a 13-year-old girl, will likely never fully recover from the abuse they endured,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Our warning to predators is that the FBI will go to great lengths to protect our most vulnerable citizens from those who seek to manipulate and do them harm.”

According to U.S. Attorney Buchanan, the charges and other information presented in court: On June 18, 2012, Hunt saw a Facebook posting from a 13-year-old girl stating that she wanted to run away from her family’s home. Hunt knew that she was 13 years old, but he still agreed to pick her up. He took her to his apartment in Roswell and gave her alcohol, marijuana and opioids.

Over the next several weeks, Hunt engaged in numerous sex acts with the girl, many of them while she was impaired from alcohol or drugs. All of the sex acts occurred in Hunt’s living room area where he positioned a camera to record his sex acts with the child. On July 7, 2012, Hunt arranged for the girl’s father to pick her up at a restaurant. Hunt was unaware that the child’s father had arranged for the police to be present at the meeting location.  Hunt was arrested when he dropped off the victim at approximately 2:30 AM. 

Fulton County charged Hunt locally with child molestation offenses. But he was released on bond and fled the state. The U.S. Attorney’s Office then obtained an arrest warrant for Hunt for the federal offense of production of child pornography via a criminal complaint. He was arrested under an alias in Las Vegas, Nevada, on August 30, 2019.

Derrick Hunt, 39, of Roswell, Georgia, was sentenced to 17 years and six months in prison to be followed by supervised release for life. Hunt was convicted on these charges on May 16, 2022, after he pleaded guilty.

This case was investigated by the Federal Bureau of Investigation.

Assistant U.S. Attorney Paul R. Jones 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.

ROME, Ga. - Stacy Keith Wisener, a repeat sex offender, has been sentenced to three decades in federal prison for sexually abusing an 11-year-old girl and producing child pornography depicting the abuse. Wisener also received a concurrent term of imprisonment for possessing mail he had stolen from the U.S. Postal Service processing facility where he worked.

“After his release from Georgia’s sex offender registry, Wisener resumed his predatory activities,” said U.S. Attorney Ryan K. Buchanan. “His horrific targeting of this child is unbelievable.  The extraordinary courage of Wisener’s young victim, and outstanding cooperation between investigators and prosecutors on the federal, state, and local levels, brought this repeat child predator to justice.”

“Wisener’s decision to continue to exploit children, even after working to get off the sex offender registry, now puts him in prison for decades,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “It is difficult to measure the pain and suffering this victim has endured.  This case serves as an example of the FBI and our partners’ commitment to bring to justice despicable predators that prey on vulnerable children for their own gratification.”

“This defendant wasted a second chance after being removed from the sex offender registry by reoffending, this time with far more egregious crimes. The GBI is committed to working with our partners to protect our young ones who are most vulnerable,” said Georgia Bureau of Investigation Assistant Director John Melvin.

“Given the horrid nature of Wisener’s conduct, we are especially grateful for the hard work and dedication of the investigative and legal teams,” said Special Agent in Charge Scott Pierce, USPS Office of Inspector General, Southern Area Field Office. “This sentence, likely leading to life behind bars, is a critical step in protecting those most vulnerable to predators like Wisener. The USPS Office of Inspector General will continue to work hand-in-hand with our local, state and federal partners to hold accountable any Postal Service employee who chooses to violate the law.”

“We are thankful for the strong relationships that we have with our state and federal partners.  In complex cases like these, those partnerships help secure convictions which will ensure that no other child will ever be terrorized by this man.  I would like to sincerely thank all of the individuals who played a role in securing this conviction for these appalling crimes,” said Paulding County Sheriff Gary Gulledge.

According to U.S. Attorney Buchanan, the charges and other information presented in court: for approximately four years, Wisener sexually molested a minor girl and routinely photographed and videotaped himself assaulting her. The abuse began in 2017, just a few months after a Paulding County Superior Court judge granted Wisener’s application to be removed from Georgia’s sex offender registry.  Wisener had been added to the registry in 2003, when he pleaded guilty to molesting a different child under the age of 16.  For that crime, Wisener was sentenced to probation in lieu of any jail time.

In October 2021, the victim, who Wisener had started molesting in 2017 when she was 11 years old, reported the abuse to her parents and local law enforcement.  The Paulding County Sheriff’s Office immediately obtained a warrant to search Wisener’s home, where many of the assaults occurred.  Deputies found and seized multiple data storage devices, including hard drives, flash drives, SD cards, micro-SD cards, and compact discs. A camera, a video camera, and a computer were also seized. Many of the seized devices contained child pornography, including but not limited to photographs and videos of Wisener molesting the victim.

During the search, deputies also located thousands of pieces of unopened mail, including packages, that bore the names and addresses of people other than Wisener.  Wisener stole these items from the Postal Service processing and distribution facility on Crown Road in Atlanta.

Stacy Keith Wisener, 60, of Dallas, Georgia, was sentenced by U.S. District Judge Mark H. Cohen to 30 years in prison to be followed by lifetime supervised release. Additionally, Wisener was ordered to pay restitution in the amount of $175,000, a $5,200 special assessment, and to forfeit his house as property he had used to produce child pornography. Finally, Wisener was required to re-register as a sex offender.

Wisener was convicted of the federal child exploitation and stolen mail possession charges on April 29, 2022, after he pleaded guilty.

This case was investigated by the Federal Bureau of Investigation, Georgia Bureau of Investigation, Paulding County Sheriff’s Office, and United States Postal Service Office of Inspector General. The Paulding County District Attorney’s Office and United States Marshals Service provided valuable assistance.

Assistant U.S. Attorneys Leanne M. Marek and Theodore S. Hertzberg prosecuted the case. Assistant U.S. Attorney Cynthia B. Smith is representing the government in the related civil forfeiture action against Wisener’s house.

This case was 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 – Former Georgia Vocational Rehabilitation Agency counselor Karen C. Lyke (formerly known as Karen C. Gregory) has been charged with forging educational records and creating fake students with non-existent disabilities and illnesses in an elaborate, multi-year scheme to steal more than $1.3 million.  

“By exploiting her position with the Georgia Vocational Rehabilitation Agency, Lyke allegedly orchestrated a sophisticated, long-term scheme to fleece taxpayers of more than $1.3 million through doctored records and the creation of fake students with non-existent disabilities,” said U.S. Attorney Ryan K. Buchanan.  “Lyke’s alleged enterprise was uncovered through the collaborative efforts of the Georgia Office of Inspector General in partnership with the FBI.”

“Through her alleged scheme, Karen Lyke targeted money meant for those with disabilities trying to improve their lives,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “I’m proud of the work of the FBI and our law enforcement partners for their work in this case. We will continue to work together to stop those who steal taxpayer funds.”

“Not only is theft of government money a serious crime that will be vigorously investigated, but all too often it also deprives our most vulnerable citizens of vital assistance,” said Georgia State Inspector General Scott McAfee. “OIG will continue to uphold the integrity of state programs and ensure taxpayer dollars are used for their intended purpose.”

“The Georgia Vocational Rehabilitation Agency is committed to protecting the interests of Georgia’s taxpayers and our constituents. Therefore, we notified the Georgia Office of Inspector General as soon as we suspected fraud in this matter,” says GVRA Executive Director, Chris Wells. 

According to U.S. Attorney Buchanan, the charges, and other information presented in court: the State Vocational Rehabilitation Services Program is a federally funded program administered by the U.S. Department of Education that offers grant money to assist states to provide services to individuals with disabilities. To be eligible for the State Vocational Rehabilitation Services Program, individuals must have a physical or mental impairment that results in a substantial impediment to employment and require services to achieve employment and to maximize career goals. Across the country, state vocational rehabilitation agencies offer various services to individuals with disabilities, including tuition assistance for vocational training and college education.

The Georgia Vocational Rehabilitation Agency (“GVRA”) operates Georgia’s vocational rehabilitation program. Between 2017 and 2020, the GVRA annually received at least $100,000,000 in federal funds. The GVRA’s Vocational Rehabilitation Program helped people with disabilities (known as “clients”) to find and maintain employment, including by providing funding and tuition assistance for college education. 

During this time, the GVRA assigned counselors to assist its clients, including helping clients to obtain tuition assistance. To obtain tuition assistance, a client was required to provide the GVRA with documentation to support obtaining GVRA funds, including: (a) medical records demonstrating a disability related to employment, (b) a driver’s license, (c) proof of registration for classes, and (d) financial aid information. After receiving the information, the client’s GVRA counselor reviewed the documentation and, if the counselor approved the request for tuition assistance, a check was mailed to the client for the requested educational expenses. From June 2015 to March 2019, Lyke served as a GVRA counselor in its Norcross, Georgia office. 

From approximately May 2016 to November 2020, Lyke and a close relative (the “Family Member”) allegedly conspired to steal money from the GVRA by claiming educational expenses for approximately 13 fake students. Lyke and the Family Member used the names of actual friends and relatives as the names of the fake disabled students seeking tuition assistance from the GVRA.

Lyke and the Family Member allegedly used the names of friends and relatives to create fake medical records to make it appear that the approximately 13 fake students qualified for tuition assistance from the GVRA. Lyke and the Family Member claimed that these fake students suffered from disabilities or illnesses like AIDS, cancer, psychosocial impairments, or muscular dystrophy.

As proof of identification, Lyke and the Family Member provided the GVRA with manufactured images of fake driver’s licenses that listed the names of their friends and relatives. In one instance, the Family Member created a fake driver’s license in his cousin’s name, by using a mug shot image of an unknown individual from the Internet as the driver’s license photograph.

Lyke and the Family Member then used photo-editing software to alter authentic college transcripts, financial aid reports, and proofs of registration from actual GVRA clients to support claims that the fake students attended schools like the Georgia Institute of Technology, Georgia State University, or the University of Georgia. Lyke then allegedly uploaded the sham driver’s licenses, transcripts, financial aid reports, and other documentation into the GVRA’s electronic database.

Based on false documentation, Lyke caused more than 230 checks to be mailed to approximately 13 friends and relatives for claimed educational expenses. In fact, none of the 13 fake students attended any colleges or universities.

The GVRA mailed the checks to post office boxes that Lyke and the Family Member opened in their own names. After receiving the GVRA checks, Lyke and the Family Member allegedly either: (a) deposited the GVRA checks into their own bank accounts, or (b) gave the GVRA checks to their friends and relatives to be deposited. The friends and relatives funneled most of the GVRA funds back to Lyke and the Family Member after depositing the GVRA checks.

After Lyke left the GVRA in March 2019, Lyke and the Family Member allegedly continued to submit forged paperwork to the GVRA for non-existent educational expenses. Based on the false submissions, the GVRA continued to issue checks to the fake students for bogus educational expenses. Lyke and the Family Member used the stolen GVRA funds to pay for various personal expenses, including cars, jewelry, high-end guitars, and the down payment on a new home. In total, based on the false documentation they created, the GVRA mailed more than 230 checks to Lyke and the Family Member resulting in the theft of approximately $1.3 million.

From approximately August 2016 to February 2019, Lyke and the Family Member also allegedly conspired to steal several high-value computers from the GVRA. Lyke stole multiple computers in her capacity as a GVRA counselor by ordering:

• Several computers by falsely submitting paperwork to the GVRA claiming that three genuine GVRA clients needed computers to further their educational goals. In fact, the GVRA clients did not know that Lyke had ordered the computers under their names and never received the computers;

• Three computers by falsely submitting paperwork to the GVRA claiming that three fake students (that Lyke and the Family Member created) needed the computers to further their educational goals; and

• One computer by falsely submitting paperwork to the GVRA claiming that the Family Member was a GVRA client and needed a computer to further his educational goals.

Lyke arranged for at least six computers to be shipped to her attention at the GVRA office in Norcross. Upon delivery, Lyke stole the computers and computer accessories from the GVRA. Lyke and the Family Member then sold at least five of the computers on eBay using the Family Member’s account. Lyke and the Family Member kept one computer for personal use. In total, Lyke and the Family Member allegedly stole at least seven computers with various accessories worth approximately $32,000.

Based on the conduct alleged above, the U.S. Attorney charged Karen C. Lyke, 37, of Toledo, Ohio, in a criminal information with one count of conspiring to commit federal program theft. Lyke has stated her intent to plead guilty to the charge.

The Federal Bureau of Investigation and Georgia Office of Inspector General are investigating the case. The Georgia Vocational Rehabilitation Agency also provided valuable investigative assistance.

Assistant U.S. Attorneys Jeffrey W. Davis and Jesika W. French are prosecuting the case.

Members of the public are reminded that the information only contains a charge. The defendant is presumed innocent of the charge and it will be the government’s burden to prove her guilt beyond a reasonable doubt at trial if the defendant foregoes entry of a guilty plea and the matter is indicted.

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 – Ibnisa Durr has been sentenced to federal prison for possessing a firearm after a felony sentence. Durr fled from officers in a highspeed chase on Georgia 400 before ultimately crashing his vehicle and attempting to throw a bag containing a loaded firearm over an interstate guardrail.

“Durr has a serious criminal history, which includes robbery and aggravated assault convictions,” said U.S. Attorney Ryan K. Buchanan.  “His reckless conduct seriously endangered the lives of innocent motorists and officers.  However, the coordinated efforts of multiple law enforcement agencies led to Durr’s capture, and subsequent sentence.”

“The message from this sentencing is clear. Anyone who thinks about possessing an illegal firearm and compounding that crime by fleeing from police and putting innocent civilians in danger, will get caught, and when they do, they will serve significant time in prison,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Thanks to the assistance from our local law enforcement partners, the threat from this criminal is eliminated from our streets.”

“Anytime we take a career criminal off the streets of our great city, it’s a win-win situation for the city and the citizens of Atlanta,” said Interim Chief Darin Schierbaum. “The collaborative efforts of the Atlanta Police Department and the Sandy Springs Police Department is another example of two law enforcement agencies working together to bring a criminal to justice.”

“Lawlessness and criminal behavior should not be tolerated in a civilized society. This sentence imposed will serve as a reminder to all who would commit violent crimes, that you will pay a high personal price for your misdeeds.  Metro Atlanta law enforcement will always work together to make our cities, roads, and neighborhoods a safe place for all,” said Sandy Springs Police Chief Kenneth DeSimone.

According to U.S. Attorney Buchanan, the charges and other information presented in court: On May 30, 2021, officers with the Atlanta Police Department (APD) responded to a residence in Atlanta, after receiving reports that a person had been shot.  When they arrived, APD discovered the victim had been shot multiple times with non-life-threatening injuries.  Through a subsequent investigation, APD identified Durr as the shooter and obtained a warrant for his arrest. 

Approximately three months after the shooting, APD’s Fugitive Unit located Durr and observed him enter a vehicle. When APD attempted to take Durr into custody, he sped away, and a highspeed chase ensued on Georgia 400. During the chase, Durr attempted to elude police by rapidly changing lanes, which led him to crash into two police vehicles, as well as an uninvolved motorist’s vehicle. Durr tried to flee on foot, and in doing so, he attempted to throw a bag containing a loaded firearm over a nearby guardrail.  The firearm was recovered by the arresting officers.

Ibnisa Durr (“Paper Lovee”), 26, of Atlanta, Georgia, was sentenced by U.S. District Judge J.P. Boulee to seven years and four months in prison to be followed by three years of supervised release. On May 25, 2022, he pleaded guilty to the offense of felon-in-possession of a firearm.

This case was investigated by the Federal Bureau of Investigations, the Atlanta Police Department and the Sandy Springs Police Department.

Assistant U.S. Attorney Dash A. Cooper prosecuted the case.

This case was brought as part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.

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 – De’reek Banks has been sentenced for operating a scheme that caused approximately $48,000,000 in outstanding federal student loans to be fraudulently discharged by exploiting a program intended for disabled military veterans. Banks illegally pocketed about $891,000 in payments from more than 500 student loan borrowers. Many of these borrowers mistakenly believed that they had paid Banks for legitimate student debt relief services.

“This defendant brazenly stole funds from innocent student loan borrowers by exploiting a financial aid program intended to assist military vets who sacrificed their health for the security of our country,” said U.S. Attorney Ryan K. Buchanan. “He tricked borrowers into believing that he could legitimately obtain federal student loan discharges for them while attempting to defraud the U.S. government of almost 50 million dollars.”

“The sentencing demonstrates the commitment of the US Postal Inspection Service to bring to justice fraudsters who seek to exploit victims and federal programs for their own personal gain,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division.  “We are proud to work with our law enforcement partners to unravel and stop this type of fraudulent scheme.”

“I’m proud of the OIG Special Agents and our law enforcement colleagues whose efforts brought about this action,” said Reginald J. France, Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Southeastern Regional Office. “The OIG is committed to fighting student aid fraud in all its forms and we will continue to work with our partners to pursue anyone who participants in these types of crimes.”

According to U.S. Attorney Buchanan, the charges and other information presented in court:  De’reek Banks offered to help student loan borrowers obtain discharges for federal student loans in exchange for a fee. Banks claimed that special government programs existed for authorizing the discharge of the borrowers’ loans. But Banks’s business relied on false statements he made to Federal Student Aid, an office of the U.S. Department of Education responsible for providing billions in financial aid to students.

Banks made false representations to the agency, and fabricated hundreds of Department of Veterans Affairs letters using a fake letterhead, claiming that the borrowers were military veterans who were eligible for student loan discharges due to a total or permanent disability (“TPD”). Banks then used these letters to apply for special TPD discharges with Federal Student Aid that caused the student loan borrowers’ debts to be erased even though the borrowers did not lawfully qualify for the discharge. Banks caused approximately $48,000,000 in student loans to be fraudulently discharged through his scheme.

On August 22, 2022, De’reek Banks, 41, of Lithonia, Georgia, was sentenced to six years in prison to be followed by three years of supervised release and ordered to pay restitution in the amount of $910,416.69.  He pleaded guilty to theft of government property.

This case was investigated by the U.S. Department of Education, Office of Inspector General and the U.S. Postal Inspection Service.

Assistant U.S. Attorney Samir Kaushal, Deputy Chief of the Cyber and Intellectual Property Crime Section, 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 – Keith Jeffords, M.D., has agreed to pay $100,000 in penalties and refrain from applying for a DEA registration for a period of five years to resolve allegations that he issued prescriptions for controlled substances while his medical license was suspended by the Georgia Composite Medical Board, in violation of the Controlled Substances Act (CSA).  The CSA requirements are designed to prevent the diversion of controlled substances and ensure that controlled substances are dispensed and prescribed by authorized individuals.  Prior to agreeing that he would not hold a registration for a period of five years, Dr. Jeffords voluntarily surrendered his registration to the DEA.

“A suspended medical license means that a doctor cannot write prescriptions for controlled substances, period,” said U.S. Attorney Ryan K. Buchanan “When physicians ignore this basic requirement of the Controlled Substances Act, our office will vigorously pursue the violations.” 

“While in the midst of this country’s prescription opioid epidemic, eliminating physicians who disregard both state and federal licensing requirements and who continue to prescribe opioids is an important part of DEA’s mission,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “This medical doctor surrendered his DEA registration and will refrain from applying for a registration for a period of time and will pay a fine. This case was a success because of the hard work and dedication put forth by DEA and its law enforcement partners.” 

Keith Jeffords operates a plastic surgery practice in Smyrna, Georgia.  Jeffords wrote prescriptions for powerful opioids after the Medical Board summarily suspended his license on November 22, 2021.  As part of the settlement, Jeffords acknowledged that he distributed controlled substances in violation of the CSA and its implementing regulations.

The CSA was enacted by Congress to deter the illegal importation, manufacture, distribution, possession, and improper use of controlled substances, including prescription medications.  The CSA prohibits DEA registrants without a valid state medical license from issuing prescriptions for controlled substances.  DEA registrants who issue prescriptions without a valid medical license are subject to civil monetary penalties for each violation.

This case was investigated by the Drug Enforcement Administration.

The civil settlement was reached by Assistant U.S. Attorneys Austin Hall and Adam Nugent.

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 – Tory Lenard Troup has been sentenced as the Atlanta-based leader of a ring of repeat offenders who moved large quantities of cocaine through Atlanta and laundered criminal proceeds using a network of bank accounts, business entities, and purchases of luxury and high-performance cars, homes, jewelry, and cosmetic surgery. Members of the group also obtained fraudulent loans from the Paycheck Protection Program and the COVID-19 Economic Injury Disaster Loan Program.

“This network of drug traffickers victimized our community in many ways, including by distributing dangerous drugs and exploiting the banking system and pandemic disaster funds while buying homes in our neighborhoods as a way to conceal their illegal profits,” said U.S. Attorney Ryan K. Buchanan. “Through a successful multi-year, cross-agency investigation and resulting seizure of assets, the main culprits will serve prison sentences and lose the spoils of their crimes.”

“This sentencing deals a major blow to Troup’s drug trafficking organization, and is a major step in keeping drugs off the streets of metro Atlanta and elsewhere,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “This criminal organization has reached its final chapter, as these defendants will now spend well-deserved time in prison.”

“Homeland Security Investigations will continue to utilize our expertise to combat the movement of illicit narcotics and proceeds in an effort to stop our communities from being poisoned by greedy criminals,” said HSI Miami Special Agent in Charge Anthony Salisbury. “Through the collaborative efforts with our partners, this narcotics trafficking network has been dismantled and their flow of dangerous narcotics into the United States has been stopped.” 

According to U.S. Attorney Buchanan, the charges, and other information presented in court: in 2008, Tory Troup, shortly after his release from prison in 2007 for his second federal drug trafficking conviction, organized other convicted drug traffickers, including Franklin Troup, Joseph Alexander, and Rodriquez Redding, to form a new criminal operation. They worked together to source cocaine from Colombia, the Bahamas, and Texas; transported the drugs by private plane, car, and UPS shipments to the Atlanta area; and distributed the drugs to customers in Atlanta and South Carolina. One customer, Lidurrius Bailey, converted the cocaine into large batches of crack (nearly 400 grams at a time) for further distribution. They also smuggled bulk quantities of marijuana, up to nine bales at a time, into the Miami area by boat.

The group transported some of its drug proceeds by having people drive the cash in cars or shipping bundles of cash through the mail, FedEx, or UPS. And to minimize the risk of detection by law enforcement they used a multi-faceted money laundering operation to covertly gather payments, and move those proceeds from customers in Atlanta and South Carolina to Texas, using a network of bank accounts held by multiple individuals, including Troup’s wife, LaShana Johnson, as well as a girlfriend in Houston. Troup also enlisted a business entity and its bank accounts to collect and launder illegal profits disguised as revenue from legitimate business operations. The conspirators then used their illegal profits to buy luxury cars, often in other people’s names, all in an effort to avoid drawing law enforcement attention.

For example, Redding convinced two of his relatives to purchase and register a $92,000 Mercedes CL 63 AMG and a $65,000 Mercedes CLS 550 in their names with his drug money, drawing them into his web of crimes and ultimately subjecting them to the arrival of federal agents at their door. The group also concealed drug profits by buying properties, many of them homes in residential neighborhoods. Elgin Jordan, who sourced some of the drugs for members of the operation, accumulated 14 properties. Many of the homes sat vacant or were rented, preventing lawful citizens from purchasing the properties and peacefully residing in those neighborhoods. Members of the group also used their profits to buy expensive jewelry and even cosmetic surgery, most often paying cash in the mistaken belief that they could avoid law enforcement detection by doing so.

For many years the group managed to operate their scheme without law enforcement intervention due to their extensive concealment efforts, tight code of loyalty, and threats to others. But ultimately a collaboration of multiple federal agencies conducting a comprehensive financial investigation, in combination with evidence from local agencies, a wiretap, drug and money seizures, information from cooperating sources who feared violent retribution, and undercover recordings, produced a series of federal charges that dismantled the organization.

Redding and Johnson, two of the conspirators granted bond while their charges were pending, continued their criminal efforts and fraudulently obtained Paycheck Protection Program loans and an Economic Injury Disaster Loan Program advance for businesses that did not exist. As a result, the court imposed additional sentences and/or restitution obligations.  

Tory Lenard Troup, 52, of Atlanta, Georgia, was sentenced to eight years in prison followed by 15 years of supervised release and ordered to forfeit two residential properties and $840,124. He pleaded guilty to charges of conspiracy to possess with intent to distribute cocaine and conspiracy to commit money laundering on June 2, 2021.

The following individuals were previously sentenced:

• Franklin Benson Troup, 51, of Austell, Georgia, was sentenced to eight years in prison followed by 15 years of supervised release and ordered to forfeit $690,000. He pleaded guilty to charges of conspiracy to possess with intent to distribute cocaine and conspiracy to commit money laundering on June 2, 2021.
• Joseph Anthony Alexander, 52, of Coral Springs, Florida, was sentenced to 11 years and three months in prison followed by five years of supervised release and ordered to forfeit $111,860. He pleaded guilty to charges of conspiracy to possess with intent to distribute cocaine and conspiracy to commit money laundering on March 11, 2019.
• Rodriquez Deonte Redding, a/k/a “Rodriguez Redding,” a/k/a “Dreek,” 38, of Atlanta, Georgia, was sentenced to seven years in prison followed by five years of supervised release and ordered to pay $46,666 in restitution to the U.S. Small Business Administration and PPP lenders. He pleaded guilty to charges of conspiracy to possess with intent to distribute cocaine and conspiracy to commit money laundering on June 2, 2021, and pleaded guilty to a charge of committing wire fraud while on pretrial release on January 21, 2022.
• LaShana Michele Johnson, a/k/a “LaShana Troup,” 50, of Atlanta, Georgia, was sentenced to four years of probation and ordered to pay $10,000 in restitution to the U.S. Small Business Administration. She pleaded guilty to a charge of conspiracy to commit money laundering on June 7, 2021.
• Lidurrius Bailey, 49, of Fayetteville, Georgia, was sentenced to 10 years in prison followed by five years of supervised release and forfeited $709,985 and jewelry valued at $31,750. He pleaded guilty to a charge of possession with intent to distribute cocaine and cocaine base on October 23, 2015.
• Elgin Demarco Jordan, 48, of Atlanta, Georgia, was sentenced to eight years in prison followed by four years of supervised release and ordered to forfeit 14 properties with a total tax assessed value of over $1.5 million. He pleaded guilty to charges of conspiracy to possess with intent to distribute cocaine and heroin and conspiracy to commit money laundering on June 2, 2016.

This case was investigated by the Drug Enforcement Administration, Department of Homeland Security – Homeland Security Investigations, and Internal Revenue Service – Criminal Investigation, with valuable assistance provided by the Fulton County Sheriff’s Office and Atlanta Police Department.

Assistant U.S. Attorney Garrett L. Bradford, Deputy Chief of the Public Integrity and Special Matters section, 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.

This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

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.

SAVANNAH, GA:  An Iraqi national has been sentenced to federal prison after being convicted of attempting to smuggle guns through the Port of Savannah.

Nihad Al Jaberi, 43, of Clarkston, Ga., was sentenced to 94 months in prison after a U.S. District Court jury in February convicted him on charges of Smuggling, Failure to Notify a Common Carrier, and Submitting False or Misleading Export Information, said David H. Estes, U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge R. Stan Baker also ordered that Al Jaberi be referred to U.S. Immigration and Customs Enforcement for deportation after completion of his prison term, and if not deported, Al Jaberi must serve three years of supervised release.

There is no parole in the federal system.

“Our law enforcement partners performed outstanding work in detecting and stopping this shipment hidden guns,” said U.S. Attorney Estes. “This interception will hold Al Jaberi accountable while preventing deadly weapons from heading to a dangerous and unstable country.”

As proven at trial, Al Jaberi is an Iraqi citizen and legal permanent resident of the United States who attempted in August 2020 to hide six .308-caliber long-range rifles and three handguns in a shipment labeled as “71 Pieces of Spare Auto Parts with No License Required.” Al Jaberi obtained the firearms through straw purchases at various Atlanta-area sporting goods stores before disassembling the guns and hiding them among used automotive parts in a container that authorities intercepted at the Port of Savannah.

“Illegally exporting firearms is a violation of our nation’s export control laws and often has serious consequences in the United States and abroad,” said Acting Special Agent in Charge Jonathan Carson, U.S. Department of Commerce, Office of Export Enforcement (OEE), Miami Field Office. “This outcome demonstrates the effectiveness of OEE, working with our law enforcement partners, to disrupt the illegal export of sensitive, controlled items.”

“ATF’s central objective is ensuring the safety of local residents,” said Beau Kolodka, Assistant Special Agent in Charge of the Atlanta Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives. “In order to accomplish this mission, ATF will aggressively and acutely target individuals who seek to diminish the general welfare through illegal firearms trafficking.”

“HSI’s work to prevent the smuggling of illegal weapons protects communities around the globe,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI and its law enforcement partners are committed to catching and prosecuting those involved in this illegal trade.” 

“Customs and Border Protection officers at Savannah seaport work tirelessly alongside partnering agencies to stop illicit shipments into and out of the country,” said,  David Santos, Acting Area Port Director CBP Savannah. “We can only imagine where these guns could have ended up.”

The case was investigated by U.S. Department of Commerce Office of Export Enforcement; the Bureau of Alcohol, Tobacco, Firearms and Explosives; Homeland Security Investigations; and U.S. Customs and Border Protection, and prosecuted for the United States by Southern District of Georgia Special Assistant U.S. Attorney Darron J. Hubbard and Assistant U.S. Attorney Jennifer G. Solari, and by Northern District of Georgia Assistant U.S. Attorney Theodore S. Hertzberg.

ATLANTA - Harrescia Hopkins, a correctional officer employed at the U.S. Penitentiary in Atlanta, Georgia, has been arraigned on federal charges of wire fraud for fraudulently obtaining two Paycheck Protection Program ("PPP") loans. Hopkins was indicted by a federal grand jury on August 9, 2022.

“Hopkins was employed in a position of trust to help safeguard our community,” said U.S. Attorney Ryan K. Buchanan. “But during a time of extreme economic need in our nation due to the COVID-19 pandemic she chose to defraud taxpayers and improperly take funds intended to help struggling businesses survive.”

“Hopkins allegedly tried to take advantage of the system by fraudulently obtaining PPP funds earmarked for those who were legitimately struggling to make ends meet during the height of the COVID-19 pandemic,” 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: 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 who were 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.

The PPP allowed qualifying small businesses and other organizations to receive PPP loans. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent, and utilities. The PPP allowed the interest and principal on a PPP loan to be entirely forgiven if the business spent the loan proceeds on these expense items within a designated period of time and used a certain percentage of the PPP loan proceeds for payroll expenses.

Hopkins, while a Federal Bureau of Prisons correctional officer, allegedly 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, and Hopkins caused the loan proceeds to be deposited into her personal checking account. 

Harrescia Hopkins, 33, of Stone Mountain, Georgia, was arraigned before U.S. Magistrate Judge Christopher C. Bly.  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 Justice, Office of Inspector General.

Assistant U.S. Attorney Garrett L. Bradford, Deputy Chief of the Public Integrity and Special Matters Section, 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.

ROME, Ga. - Juan Cain Valencia-Ramirez has been sentenced for conspiring to distribute large quantities of methamphetamine and to launder drug money.

“This defendant was responsible for importing, processing and distributing hundreds of kilograms of methamphetamine in the metro-Atlanta and Northwest Georgia areas,” said U.S. Attorney Ryan K. Buchanan. “His long history of methamphetamine dealing and eluding arrest has ended thanks to the coordinated efforts of DEA and other federal and local law enforcement partners.”

“No matter how sophisticated the techniques get for smuggling drugs, the DEA and its law enforcement partners remain a step ahead of criminals and will deny them the opportunity to destroy communities with their insidious drugs,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “This investigation was a success as it dismantled a once-thriving meth ring in North Georgia.”

According to U.S. Attorney Buchanan, the charges and other information presented in court: In April 2018, Juan Cain Valencia-Ramirez operated a methamphetamine processing and distribution cell in Rome, Georgia. Valencia-Ramirez processed liquid methamphetamine imported in vehicle gas tanks from Mexico and coordinated the distribution of the drugs in metro-Atlanta and Northwest Georgia. He also directed associates to deposit thousands of dollars in drug money that he funneled through bank accounts.

Valencia-Ramirez had remained an elusive law enforcement target because he frequently changed phones and relied on associates to complete drug deals. But federal investigators successfully tracked Valencia-Ramirez’s phone to his residence in Rome following an undercover methamphetamine purchase during which DEA agents recorded a phone call with him.

Undercover agents again recorded a phone call with Valencia-Ramirez during an attempted methamphetamine purchase in September 2018. In October 2018, DEA agents, the Dalton Police Department, and the Rome/Floyd Metro Task Force searched Valencia-Ramirez’s stash house located in a wooded area outside Rome. During the search, investigators recovered approximately 176 kilograms of crystal methamphetamine (worth more than $1.1 million at 2018 prices), evidence of a methamphetamine processing lab, and several firearms. The drugs were buried in caches of camouflaged ice chests and plastic bins concealed in the woods around the property.

Valencia-Ramirez fled to Houston, Texas, following the search, where he continued managing his methamphetamine and money laundering operation. In November 2018, DEA agents searched a stash house belonging to Valencia-Ramirez in Houston where they seized approximately 17 kilograms of methamphetamine. DEA agents eventually located him in June 2019 in Smyrna, Georgia, and arrested him. That same day, agents searched the residence of two of Valencia-Ramirez’s co-defendants, Javier Rivera and Jasmine Garcia, and found more methamphetamine and firearms.

Juan Cain Valencia-Ramirez, a/k/a “Chapa,” 39, of Rome, Georgia, was sentenced to 22 years, one month in prison to be followed by five years of supervised release. On November 1, 2021, a jury convicted Valencia-Ramirez of the offenses of conspiracy to distribute methamphetamine, distribution of methamphetamine, attempted distribution of methamphetamine, and conspiracy to launder money.

The following co-defendants pleaded guilty, including several who have been sentenced:

• Javier Rivera, 26, of Lawrenceville, Georgia, was sentenced to 17 years and one month of imprisonment, followed by five years of supervised release. He pleaded guilty to the offenses of conspiracy to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking offense, and conspiracy to launder money on December 11, 2020.
• Luis Perez, 28, of Norcross, Georgia, was sentenced to 11 years and 10 months of imprisonment, followed by five years of supervised release. He pleaded guilty to the offense of conspiracy to distribute methamphetamine on March 12, 2020.
• Ricky McPherson, 26, of Rome, Georgia, was sentenced to five years and five months of imprisonment, followed by five years of supervised release. He pleaded guilty to the offense of conspiracy to distribute methamphetamine on October 16, 2019.
• Jasmine Garcia, 24, of Lawrenceville, Georgia, pleaded guilty to the offenses of conspiracy to distribute methamphetamine, conspiracy to launder money, and possession of a firearm in furtherance of a drug trafficking offense on December 1, 2020, and is awaiting sentencing.

This case was investigated by the Drug Enforcement Administration, with assistance provided by IRS Criminal Investigations, the Dalton Police Department, and the Rome/Floyd Metro Task Force.

Assistant U.S. Attorneys John DeGenova and Nicholas Joy 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.

This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

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 – Former mail carrier Robert Elliott Sheppard has pleaded guilty to drug trafficking charges for recruiting fellow mail carriers to deliver packages of controlled substances while he was on disability leave.

“Postal carriers occupy a position of trust in our communities and Sheppard violated that trust by exploiting his role as a mail carrier to traffic kilogram amounts of cocaine as well as marijuana,” said U.S. Attorney Ryan K. Buchanan. “Sheppard’s conduct is especially egregious because he recruited other postal carriers to participate in his criminal scheme once he was on disability leave. His conduct and greed potentially exposed countless innocent postal workers and the public to dangerous drugs and to the violence that these crimes frequently cause.”

“Sheppard’s greed taints the public’s trust in U.S. Postal Service employees, the majority of whom are hard-working and trustworthy individuals dedicated to delivering mail safely throughout our communities,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI wants it to be clear that public corruption remains our number one criminal program priority and, as such, we have dedicated significant resources toward the identification, investigation, and prosecution of any individuals involved in similar such conduct.”

“We appreciate the outstanding effort by both the investigative and legal teams,” said Special Agent in Charge Scott Pierce, USPS Office of Inspector General, Southern Area Field Office. “The vast majority of Postal Service employees are honest, hardworking individuals who would never dream of violating the public trust in this manner. An employee who decides otherwise, however, will be aggressively investigated by OIG special agents. This case serves as an excellent example of the successful collaboration between the USPS OIG, our federal and state law enforcement partners, and the U.S. Attorney’s Office to pursue and prosecute Postal Service employees involved in criminal activity.”

“Sheppard enlisted the help of two co-workers to smuggle drugs through the United States Postal system, entangling them in a drug conspiracy and furthering dangerous criminal activity. They have been brought to justice. It is now Sheppard’s time to be held accountable for his selfish actions. The DeKalb County District Attorney’s Office will continue to work with its law enforcement partners to ensure public officials like Sheppard will be brought to justice,” said DeKalb County District Attorney Sherry Boston.

According to U.S. Attorney Buchanan, the charges and other information presented in court: In 2014, Sheppard worked as a U.S Postal Service (USPS) mail carrier. In exchange for bribes, he used his position to deliver five-pound packages of drugs through the U.S. mails to Dexter Frazier, a local drug trafficker who sold cocaine and marijuana.

In 2016, Frazier approached Sheppard about delivering additional drug packages. Sheppard was on disability leave from the USPS at that time and unable to intercept and deliver packages. So Sheppard offered to recruit other mail carriers to deliver drugs for Frazier if Frazier paid Sheppard referral fees consisting of a mix of cash and marijuana. Frazier agreed.

Sheppard then contacted two coworkers, Tonie Harris and Clifton Lee. Sheppard explained to Harris and Lee that in exchange for payment, Frazier needed them to deliver packages of drugs. Sheppard instructed Harris and Lee how to arrange the deliveries to avoid detection. Harris and Lee agreed to participate in the scheme after which Sheppard gave their phone numbers to Frazier. Frazier then coordinated the illegal deliveries with Harris and Lee. Harris and Lee each delivered three packages for Frazier believing they contained two kilograms of cocaine or 10 pounds of marijuana.

Robert Elliott Sheppard, 60, of East Point, Ga., has pleaded guilty to charges of conspiracy to possess with intent to distribute cocaine and marijuana and unlawfully using the mail to commit that crime. Sentencing for Sheppard is scheduled for November 3, 2022.

Other participants in the scheme previously pleaded guilty and received the following sentences imposed by U.S. District Judge Steve C. Jones:

• Dexter Bernard Frazier, a/k/a “Dec,” 60, of Fairburn, Georgia, was sentenced on June 13, 2018, to nine years in prison to be followed by 10 years of supervised release. He was also ordered to pay restitution in the amount of $10,700. Frazier pleaded guilty to the offense of attempt to distribute cocaine and marijuana on March 6, 2018.

• Clifton Curtis Lee, a/k/a “Cliff,” 46, of Lithonia, Georgia, a letter carrier assigned to the Sandy Springs Post Office, was sentenced on June 18, 2018, to three years, 10 months in prison to be followed by three years of supervised release. He was also ordered to pay restitution in the amount of $1,800. Lee pleaded guilty to the offenses of attempt to distribute cocaine and bribery of public officials on February 28, 2018.

• Tonie Harris, 59, of Decatur, Georgia, a letter carrier assigned to the Sandy Springs Post Office, was sentenced on August 14, 2018, to three years, one month in prison to be followed by four years of supervised release. He was also ordered to pay restitution in the amount of $1,450.  Harris pleaded guilty to the offenses of attempt to distribute cocaine and marijuana and bribery of public officials on March 20, 2018.

This case is being investigated by the Federal Bureau of Investigation, the U.S. Postal Service Office of Inspector General, and the DeKalb County District Attorney’s Office.

Assistant U.S. Attorney Garrett L. Bradford, Deputy Chief of the Public Integrity and Special Matters Section, 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.

or 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 - Daniel Maloney, Fredy Contreras, Timothy Wilson, and Theodore Rowe have been arraigned on federal charges of aiming laser pointers at police helicopters.  All four were indicted by a federal grand jury on July 13, 2022.

“Pointing lasers at an aircraft is extremely dangerous,” said U.S. Attorney Ryan K. Buchanan. “A laser aimed at an aircraft blinds the pilot and makes it difficult if not impossible for the persons in the cockpit to read their instruments. Persons who are found pointing lasers at aircraft will be prosecuted.”

“When aimed at an aircraft, a beam of light from a handheld laser can illuminate a cockpit, disorienting and temporarily blinding the pilot or pilots of the craft, and in this case, preventing police from completing important public safety work,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “It's not a game. It's a federal felony that the FBI and our law enforcement partners take very seriously.”

“Irresponsibly using and aiming a laser device at any civil, commercial, military, or law enforcement aircraft seriously compromises safe aviation operations,” said Todd Damiani, Special Agent in Charge, Department of Transportation Office of Inspector General, Southeastern Region. “These arrests on federal charges should serve as a warning that engaging in this dangerous and criminal activity is unacceptable.”

“The Atlanta Police Department takes the safety of our officers seriously, whether on the ground or in the air,” said Interim Atlanta Police Chief Darin Schierbaum. “The fact that these defendants used laser pointers to endanger the lives of members of our Phoenix Air Unit and the safety of people on the ground, is very disturbing. The federal charges brought forth against these men sends a message that irresponsible actions and criminal activity will not be tolerated.”

“The Gwinnett Police Department is thankful for the diligence the FAA and FBI both have for continuing the mission of educating the public on how dangerous it is to point a laser at any aircraft. Our department will not allow these offences interfere with the Aviation Unit’s operations and the department’s mission of serving and protecting the residents of Gwinnett with first class law enforcement service, including airborne response,” said Chief James D. McClure, Gwinnett County Police Department.

According to U.S. Attorney Buchanan, the charges, and other information presented in court, each defendant aimed a laser pointer at a police helicopter as the helicopter was assisting officers on the ground:  Around 9:50 p.m. on February 13, 2020, a Gwinnett County Police Department helicopter was assisting officers in looking for a robbery suspect who had fled into a wooded area. Daniel Maloney saw the helicopter in the air and pointed a red laser at it, temporarily blinding the pilot and the tactical flight officer. They had to stop looking for the robbery suspect, switch to infrared vision, and look for the source of the red laser. Ground units went to Maloney’s home, where an officer found Maloney still pointing his laser at the helicopter.

Around 9:00 p.m. on November 9, 2020, as a Gwinnett County Police Department helicopter was assisting officers on the ground looking for a stolen vehicle, it was hit at least twice with a green laser. Using the infrared camera, the tactical officer was able to identify the home that the laser was aimed from. Officers on the ground went to the home, where Fredy Contreras admitted that he had been shining the laser at the helicopter.

In the early evening hours of May 26, 2021, an Atlanta Police Department helicopter was assisting grounds units with looking for a missing 6-year-old boy. The helicopter was struck several times by a green laser. After switching over to protective eye gear that minimized the light from the laser, the pilot was able to identify the home where the laser strikes were coming from. Officers on the ground went to the home, where Timothy Wilson admitted that he had been shining the laser at the helicopter.

Around 10:30 p.m. on July 1, 2021, Gwinnett County Police Department received a call about a suspicious person wandering in the middle of a busy road. A Gwinnett County Police Department helicopter was sent to help locate this person. While searching for the person, the helicopter was struck multiple times by a green laser. The tactical flight officer switched to the infrared camera to identify the source. Officers on the ground went to a home in Lawrenceville, where Theodore Rowe admitted that he pointed the laser at the helicopter.

Daniel Maloney, 55, of Snellville, Georgia, Fredy Contreras, 48, of Lilburn, Georgia, Timothy Wilson, 61, of Atlanta, Georgia, and Theodore Rowe, 51, of Lawrenceville, Georgia, were arraigned before U.S. Magistrate Judge Justin S. Anand.  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 each defendant’s guilt beyond a reasonable doubt at trial.

This case is being investigated by the Federal Bureau of Investigation, the Department of Transportation Office of the Inspector General, the Atlanta Police Department, and the Gwinnett County Police Department.

Assistant U.S. Attorney Paul R. Jones 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 – Rico Laprince Southall has been sentenced for possession of a firearm by a convicted felon following an incident where he was arrested after firing multiple gunshots at a family member on a public road in Cobb County, Georgia. Southall’s gunfire also struck another motorist’s vehicle.

“Southall’s illegal possession and dangerous use of these weapons are serious crimes that show how gun violence is a risk to all of us,” said U.S. Attorney Ryan K. Buchanan. “Keeping firearms out of the hands of convicted felons and individuals with violent criminal histories is essential to protecting the citizens of the district and reducing gun violence.  Fortunately, no one was injured or killed because of this defendant’s egregious disregard for the safety of our community.”

“ATF will continue to work alongside our Federal, State and local partners in furtherance of reducing violent crime ,” said ATF Atlanta Field Division Special Agent in Charge Ben Gibbons.

"The Cobb County Police Department is exceptionally proud of the actions of the officers, detectives, and civilian staff who were involved in this case and countless other cases like this. The sacrifice these men and women make each time they place the badge and vest on to protect the people of Cobb County is a testament to their character, selflessness, and bravery. The impact of their actions is simply impossible to measure. Through the continued work of seizing illegal guns and removing very violent offenders from our streets, far fewer of our Cobb County community members are shot, killed, and maimed.  We are thankful for the continued strong support from Project Safe Neighborhoods, the ATF, and our other federal partners, and we're equally grateful for the dedication of our local officers, detectives, and civilians here in Cobb County,” said Cobb County Police Chief Stuart VanHoozer.

According to the charges, and other information presented in court:  On April 1, 2021, Southall targeted the victim, a member of his family, as she drove in Powder Springs, Georgia.  Southall pursued the victim’s vehicle through the residential area and fired multiple rounds at her vehicle, all while he and the victim were travelling on a public road. Several rounds struck the victim’s vehicle and entered the passenger compartment of the vehicle, with at least one round striking an unoccupied infant safety seat.  Southall also struck another motorist’s vehicle.

When Cobb County Police Department officers arrested Southall, he possessed a weapon equipped with an extended magazine and a revolver that was reported stolen out of Pennsylvania. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) adopted the case and presented it to the U.S. Attorney’s Office for federal prosecution. Southall’s Cobb County charges are pending.

On July 13, 2022, Judge Eleanor L. Ross sentenced Southall to seven years in prison, to be followed by three years of supervised release.  Southall pleaded guilty on April 13, 2022.

Assistant U.S Attorney Norman L. Barnett prosecuted the case.  Former Assistant U.S. Attorney D’Juan Jones was the initial prosecutor for this case.

The Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Cobb County Police Department investigated the case.

This case was brought as part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.

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.

Jelani Kazmende, Wiley Martin, and Robert Louis Jeffords, Jr., have been arraigned on federal charges of dealing firearms without a license, possession of machineguns, possession of unregistered firearms, and conspiracy. Kazmende, Martin, and Jeffords were indicted by a federal grand jury on July 12, 2022.

“Equipped with large capacity magazines, illegal machineguns like those allegedly transported, possessed, and sold by these defendants present immediate danger to our community,” said U.S. Attorney Ryan K. Buchanan. “To protect the community, this office and its partners will identify, target, and prosecute to the fullest extent those who peddle these weapons unlawfully.”

“With distressing regularity, we see the damage that criminals can inflict on our communities with weapons of war," said Keri Farley, Special Agent in Charge of FBI Atlanta. “Illegal guns have no place in Georgia and the FBI will continue to work diligently with our partners to remove these dangerous criminals and weapons from our streets.”

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

According to U.S. Attorney Buchanan, the charges, and other information presented in court: On June 2, 2022, outside of a restaurant in Marietta, Georgia, Jelani Kazmende allegedly provided five privately manufactured “ghost guns” to Wiley Martin, a multi-convicted felon who was then serving a term of state probation. “Ghost guns” refers to firearms, including a frame or receiver, completed, assembled, or otherwise produced by a person other than a licensed manufacturer, and without a serial number placed by a licensed manufacturer at the time the firearm was produced.

The firearms that Kazmende allegedly gave to Martin lacked any genuine manufacturer’s makings or legitimate serial numbers. Inside of each firearm was a drop-in “auto sear device” designed to allow the firearms to fire multiple rounds with a single pull of the trigger. Following his receipt of the firearms, Martin sold all five weapons—and a sixth full-auto pistol—to undercover FBI agents.

On June 16, 2022, Kazmende and Martin met Robert Louis Jeffords, Jr., outside of the same turkey leg restaurant where Kazmende and Martin had met two weeks prior. Kazmende, Martin, and Jeffords removed from Jeffords’s truck 16 privately manufactured firearms chambered in various calibers. Separately, Jeffords carried 17 drop-in auto sear devices into the restaurant. Once the firearms had been converted to fire automatically, Martin intended to sell the guns to the undercover FBI agents again. However, before the transaction could be attempted, law enforcement officers surrounded the restaurant and arrested all three defendants. They also recovered each of the guns and auto sear devices.

Jelani Kazmende, 38, of Marietta, Georgia, Wiley Martin, 42, of Acworth, Georgia, and Robert Louis Jeffords, Jr., 62, of Forest City, North Carolina, were arraigned before Chief U.S. Magistrate Judge Russell G. Vineyard on federal charges of dealing firearms without a license, possession of machineguns, possession of unregistered firearms, and conspiracy. 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.

This case is being investigated by the Federal Bureau of Investigation and Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the Cobb County Police Department, Marietta Police Department, Sandy Springs Police Department, Douglasville Police Department, Georgia State Patrol, and Fulton County Sheriff’s Office.

Assistant U.S. Attorney Theodore S. Hertzberg 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 - Olivia Ware, a former mayoral candidate for the City of Conyers, has been sentenced to prison for using a company she started to steal over $323,000 from the Paycheck Protection Program (PPP).

“Ware shamelessly took advantage of a program designed to assist others in need during an unprecedented challenge to our nation,” said U.S. Attorney Ryan K. Buchanan.  “In her various public roles, including running for mayor, Ware asked people to trust in her ability to lead.  Unfortunately, what she has shown is a willingness to defraud taxpayers to enrich herself.”

“It is shameful that Ware tried to profit from a bad situation. This scheme took desperately needed money away from people struggling during the COVID pandemic,” said Special Agent in Charge Katrina W. Berger, 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: the PPP was an emergency funding program created to assist small business owners and their employees during the coronavirus pandemic.  PPP loans were fully guaranteed by the Small Business Administration but were underwritten and issued by authorized financial institutions. 

Before the pandemic, Olivia Ware formed a Georgia company called Let’s Talk About the Family, Inc. (Let’s Talk), where she identified herself as its CEO.  But the investigation revealed that Let’s Talk had not filed federal or state records indicating it paid any taxes or wages to any employees for several years prior to 2020.  Yet in April 2020, Ware submitted a PPP loan application to an authorized PPP lender for Let’s Talk. 

The application attached fictitious and forged federal tax records purporting to show Let’s Talk was earning millions of dollars in revenue and had 54 employees prior to the pandemic.  Ware also sent the bank a list of Let’s Talk’s 54 purported employees, identified by their names and other personal information, purporting that Let’s Talk paid hundreds of thousands of dollars a year in salaries.  However, many of the so-called employees, when contacted by federal agents, reported that they had never even heard of Ware or Let’s Talk.

As a result of the materially false information from Ware, a bank issued $323,100 in PPP funds to Let’s Talk.  Ware then spent the fraudulently obtained PPP proceeds for her own benefit, including to buy a $24,000 swimming pool, furniture, and a multitude of other home improvement items.  She also used stolen PPP funds to pay down the mortgage on her primary residence. 

Olivia Ware, 63, of Oxford, Georgia, was sentenced to two years in prison to be followed by three years of supervised release and was ordered to pay $323,100 in restitution to the Small Business Administration.  The sentence was imposed following Ware’s guilty plea to bank fraud on March 23, 2022.

This case was investigated by the U.S. Department of Homeland Security – Homeland Security Investigations.

Assistant U.S. Attorneys Trevor C. Wilmot and Bernita B. Malloy 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 - Ryan Felton has pleaded guilty to multiple counts of wire fraud, securities fraud, and money laundering charges on the fourth day of his jury trial arising from his fraudulent promotion of two cryptocurrency investment schemes that cost investors millions in losses.

“The defendant used 21st century technology to perpetrate an age-old fraud: lying to investors to steal their money and fund his own lavish lifestyle,” said U.S. Attorney Ryan K. Buchanan.  “Felton’s conviction should serve as a warning to anyone who seeks to capitalize on emerging technology to victimize others.”

“The technology has advanced, but the crime remains the same, and those who invest in cryptocurrency must be wary of opportunities that appear too good to be true,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI is committed to protecting investors from sophisticated cryptocurrency scammers that seek to capitalize on the novelty of digital currency.”

According to U.S. Attorney Buchanan, the indictment, and other information presented in court: In 2017, Felton promoted an initial coin offering (ICO) for a new entertainment streaming platform, FLiK, which he promised would surpass Netflix.  ICOs are fundraising events during which the issuers of a unique cryptocurrency “token” or “coin” set an amount they want to raise, offer it to the public in a crowd sale, and receive cryptocurrency from investors in exchange.

In order to increase, or pump, the price of FLiK coins, Felton falsely represented to investors that a prominent Atlanta rapper and actor was a co-owner of FLiK, the United States military had agreed to distribute the streaming platform to service members, and FLiK was finalizing licensing deals with major film and television studios. In reality, the rapper had no role in the company beyond authorizing a promotional social media post, FLiK had no military contract, and Felton never had discussions with any studio about licensing content. Felton further claimed that he was actively developing the platform and would use all funds raised in the ICO to launch FLiK. After the ICO closed, Felton dumped more than 40 million FLiK coins on trading markets, causing the value of FLiK coins to plummet.

Instead of using investor funds to develop the platform, Felton diverted approximately $2.4 million in investor proceeds from the ICO and trading markets to his personal account. He used the vast majority of the investor proceeds to fund his extravagant lifestyle, including all-cash purchases of a $1.5 million residence, a $180,000 red 2007 Ferrari 599 GTB Fioran Coupe, a new $58,250 Chevy Tahoe, and approximately $30,000 in diamond jewelry.

In 2018, Felton promoted a second ICO for a new company, CoinSpark, which was a cryptocurrency trading exchange.  In order to attract investors to the ICO, Felton promised that Spark coin investors would receive 25% of the trading exchange’s profits in the form of dividends. Felton further claimed that a global accounting firm would audit CoinSpark’s finances on a quarterly basis, but, in reality, he never spoke with the accounting firm. Felton also posed as a potential investor, using fake names, on various internet forums and social media sites to further promote false information and build up excitement in CoinSpark.

After raising more than $200,000 in the ICO, Felton announced that CoinSpark would not pay Spark investors a dividend and offered ICO investors a refund. Felton then repeatedly rejected or ignored investor requests for refunds. The CoinSpark exchange ultimately launched months after its promised delivery date but had significant technical issues and minimal trading activity. Instead of applying ICO proceeds to CoinSpark, Felton again diverted significant funds to his personal bank account.

Ryan Felton, 48, of Atlanta, Georgia, pleaded guilty to twelve counts of wire fraud, ten counts of money laundering, and two counts of securities fraud on the fourth day of his jury trial. Sentencing will be scheduled at a later date before U.S. District Court Judge J.P. Boulee.    

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

The SEC Washington, D.C. Office and the SEC New York Regional Office provided valuable contributions in this case.

Assistant U.S. Attorneys Sekret T. Sneed and Nathan P. Kitchens 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 – Jason Lary, the former Mayor of the City of Stonecrest, has been sentenced for using his elected office to steal hundreds of thousands of dollars in federal COVID-19 relief funds allocated to the city.

“Lary betrayed the trust placed in him by the citizens of Stonecrest by stealing the very funds meant to help his constituents weather the COVID-19 pandemic,” said U.S. Attorney Ryan K. Buchanan.  “The people of Stonecrest deserved better, and corrupt officials can expect severe consequences for using their offices to commit crimes.”

“It is extremely disheartening when an elected official, someone sworn to protect the community they serve, violates that oath by stealing relief funds intended to aid their community”, said Keri Farley, Special Agent in Charge of FBI Atlanta. “This sentencing holds Lary accountable for abusing his position of trust and blatant disrespect for the law.”

According to U.S. Attorney Buchanan, the charges and other information presented in court: In March 2020, the President signed the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act into law in response to the economic fallout of the COVID-19 pandemic.  Under the CARES Act, the federal government distributed COVID-19 relief funds to individual Americans, federal agencies, and state and local governments, including $125 million to DeKalb County.  The federal government permitted DeKalb County to further disburse these relief funds to its municipalities.  In July 2020, the DeKalb County Board of Commissioners voted to disburse some of the relief funds to its municipalities, including a $6.2 million grant to Stonecrest.

Stonecrest was required to spend the relief funds in accordance with the CARES Act.  In general, according to the Department of the Treasury, relief funds could “only be used to cover costs that – [were] necessary expenditures incurred due to the public health emergency . . . . and were incurred during the period that [began] on March 1, 2020, and [ended] on December 30, 2020.”  Examples of eligible expenditures were medical expenses, public health expenses, and grants to small businesses to reimburse the costs of business interruption caused by required closures. 

In September 2020, Jason Lary, then the Mayor of Stonecrest, signed a resolution acknowledging these CARES Act requirements.  The resolution also adopted a funding plan for most of Stonecrest’s relief funds.  The plan provided $1 million to the Stonecrest Cares Program for mask distribution, COVID-19 education and testing, and other purposes.  In practice, the Stonecrest Cares Program directed relief funds to churches and non-profit organizations in and around Stonecrest.  The plan also provided $5 million to the COVID-19 CARES Act Small Business Program (“Small Business Program”).

Stonecrest did not disburse the $6 million allocated to the Stonecrest Cares Program and Small Business Program.  Instead Lary worked behind the scenes to form a private company, Municipal Resource Partners Corporation, Inc. (“MRPC”), recruit its CEO, open its bank accounts, and ensure that Lania Boone, his convicted co-conspirator, would be hired as MRPC’s bookkeeper. Then, Lary caused the city to enter a contract with MPRC to disburse the relief funds as directed by Stonecrest. 

In or about November 2020, Stonecrest published an application on its website for businesses to apply for relief funds under the Small Business Program.  The application included the question, “are you willing to allocate 25% of your grant to marketing your business?”  Hundreds of businesses applied for relief funds, but most of the applicants were rejected.  Ignoring input from the official selection committee, from about November 2020, until about February 2021, Boone signed dozens of checks on behalf of MRPC, directing relief funds to individuals, businesses, churches, and non-profit organizations of Lary’s own choosing.

Lary used three different methods to steal the funds Stonecrest disbursed to MRPC.  First, Lary conspired with Boone to steal relief funds before they were disbursed by MRPC.  In January 2021, Boone used her access to one of MRPC’s bank accounts to wire transfer approximately $108,000 of relief funds to a mortgage servicing company.   Lary and Boone knew the purpose of the transfer was to pay off the mortgage on a lakefront home owned by Lary.  Around the same time, Lary directed approximately $7,600 in stolen relief funds to be used for Boone’s son’s college tuition and rent.

Second, Lary told churches that received relief funds from the Stonecrest Cares Program that they were required to contribute a portion of those funds for purposes identified by Lary.  For example, Lary presented a check for $150,000 in relief funds to “Church 1,” on the condition that $50,000 be given to a company called Real Estate Management Consultants, LLC (“REMC”).   Lary did not tell Church 1 at this time that he actually controlled REMC.  And while Lary falsely stated that the $50,000 would be used to assist with home repairs for people who could not afford them due to COVID-19, in reality he used the money for his own purposes, including to pay off his outstanding federal, state, and local tax liabilities. 

As another example, Lary presented a check from MRPC for $50,000 to “Church 2.”  Later, a person acting on Lary’s behalf told Church 2 to contribute $4,500 of the relief funds to REMC, purportedly for rent assistance.  Instead, Lary spent the money to pay his own property expenses and his dues to the Georgia Campaign Finance Committee.

Third, Lary and others acting on his behalf solicited relief funds from businesses that received grants under the Small Business Program.   Lary and others falsely claimed that the money would be each business’s “contribution” to Stonecrest-related marketing and advertising.  Yet Lary and others asked that these “contributions” be given not to Stonecrest, but to entities called Visit Us, Inc. and Battleground Media, LLC.   Lary did not tell the businesses that he controlled these entities.  In total, businesses were defrauded out of hundreds of thousands of dollars of relief funds.  The relief funds deposited into the Visit Us and Battleground Media accounts were used by Lary to benefit himself and his associates.  For example, Lary used relief funds held by Visit Us to pay for an associate’s political advertising.

Around October 2021, the United States seized approximately $480,000 of fraud proceeds held in the bank accounts of Visit Us and Battleground Media.  

Jason Lary, 60, of Stonecrest, Georgia, has been sentenced to four years and nine months in prison to be followed by three years of supervised release.  He was ordered to pay restitution in the amount of $119,607.69.  Lary pleaded guilty to wire fraud, federal program theft, and conspiracy on January 5, 2022.  Lania Boone, Lary’s co-conspirator, pleaded guilty to conspiracy on February 11, 2022.  She is scheduled to be sentenced on August 15, 2022.

This case was investigated by the Federal Bureau of Investigation.

Assistant U.S. Attorney Trevor C. Wilmot 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 – Attorney General Merrick B. Garland has announced the appointment of U.S. Attorney Ryan K. Buchanan of the Northern District of Georgia to serve on the Attorney General’s Advisory Committee of U.S. Attorneys (AGAC). The AGAC was created in 1973 and advises the Attorney General on matters of policy, procedure, and management impacting the Offices of the U.S. Attorneys and elevates the voices of U.S. Attorneys in Department of Justice policies. Buchanan, along with 12 other U.S. Attorneys from around the United States, will serve on the AGAC.

“These U.S. Attorneys will represent the views of dedicated federal prosecutors across the country and provide advice and insight into essential matters facing the Department,” said Attorney General Garland. “I look forward to working alongside them in carrying out the Department’s core priorities of upholding the rule of law, keeping our country safe, and protecting civil rights.”

“It’s a great honor to be selected for the AGAC,” said U.S. Attorney Ryan K. Buchanan,  “I am excited and grateful for the opportunity to partner with the Attorney General and the leadership of the Department of Justice on issues affecting the Northern District of Georgia, the U.S. Attorney Office community, and our federal, state, and local stakeholders.”

The Senate confirmed Buchanan’s appointment as U.S. Attorney for the Northern District of Georgia in April 2022. U.S. Attorney Buchanan began his career as a law clerk to the Honorable Inge P. Johnson of the U.S. District Court for the Northern District of Alabama. From 2006 to 2009, he was a litigation associate at McGuireWoods. From 2010 to 2013, Buchanan served as an Assistant United States Attorney in the Northern District of Alabama.  He joined the U.S. Attorney’s Office in the Northern District of Georgia in 2013 and has held the positions of National Security and Anti-Terrorism Council Coordinator since 2017 and Deputy Chief of the Violent Crime and National Security Section since 2018. Buchanan received his J.D. from Vanderbilt University Law School in 2005 and his B.S. from Samford University in 2001.

The AGAC appointees include U.S. Attorney Damian Williams for the Southern District of New York (Chair); U.S. Attorney Cindy K. Chung for the Western District of Pennsylvania (Vice Chair); U.S. Attorney Darcie McElwee for the District of Maine; U.S. Attorney Trini Ross for the Western District of New York; U.S. Attorney Sandra Hairston for the Middle District of North Carolina; U.S. Attorney Brandon Brown for the Western District of Louisiana; U.S. Attorney Dawn Ison for the Eastern District of Michigan; U.S. Attorney Gregory Harris for the Central District of Illinois; U.S. Attorney Andrew Luger for the District of Minnesota; U.S. Attorney Gary Restaino for the District of Arizona; U.S. Attorney Cole Finegan for the District of Colorado; and U.S. Attorney Matthew Graves for the District of Columbia.

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 - Brett Sabado has been sentenced for his role in a scheme to defraud Tricare and Medicare by submitting fraudulent claims for compound medications and durable medical equipment (DME). Sabado also agreed to pay $950,000 as part of an “ability to pay” civil settlement in order to resolve violations of the False Claims Act for causing false claims for DME to be submitted to the Medicare Program. This resolution is the result of a global investigation involving the criminal and civil divisions of the Northern District of Georgia and the Southern District of California.

“Instead of putting patient care first, the defendants decided their best interests were more important,” said U.S. Attorney Ryan K. Buchanan. “Healthcare providers and pharmacies who use their positions of trust to game the system, specifically designed to maximize their profits, put their patients at risk and divert scarce government resources.”

“Through federal healthcare programs like Medicare and TRICARE, the United States provides essential medical care for the elderly and disabled, and to service members and their families,” said U.S. Attorney Randy Grossman of the Southern District of California. “It is crucial that the American people know that taxpayer funds are being used for these important purposes and not diverted through the schemes of fraudsters. I am proud of the coordination and cooperation among districts and agencies reflected in this outcome,” he added, commending the work of the attorneys and agents in the SDCA and NDGA U.S. Attorneys’ Offices, and at DCIS, FBI, and HHS-OIG, in employing the range of criminal and civil remedies to reach this resolution.”

“This sentence will hold Sabado accountable for the damage he caused to Medicare and every taxpayer in this country,” 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.”

“HHS-OIG is committed to protecting beneficiaries of federal health care programs from fraud and safeguarding 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). “We will continue to investigate and hold accountable any providers who egregiously take advantage of their patients for illegitimate financial gain.”

“Compounding pharmacy fraud bilked the Defense Health Agency of over a billion dollars and exploited not only the military, but all citizens,” said DoD Inspector General's Defense Criminal Investigative Service (DCIS) Southeast Field Office Special Agent in Charge Cynthia A. Bruce. “I thank the U.S. Attorney's Office and our investigative team for their tireless effort to untangle this web of crime, trace the assets, and hold these individuals accountable.”  

According to U.S. Attorney Buchanan, the charges, and other information presented in court: Sabado and his co-conspirators received illegal kickbacks for Tricare referrals and prescriptions of compound medication formulations including pain creams, scar creams, and multi-vitamins that they specifically devised to maximize profits.

Sabado operated NHS, a pharmaceutical company that caused compounding pharmacies to submit false claims for these prescriptions to Tricare. The compounding pharmacies paid NHS a portion of the Tricare reimbursement, and NHS paid a portion of its proceeds to healthcare marketing companies that pushed providers into prescribing these unnecessary compound medications.

Sabado further executed the scheme by creating an online portal database used by NHS to facilitate the referral of prescriptions through NHS to the compounding pharmacies. Sabado and others at NHS used claims data to track the referrals made to compounding pharmacies and to invoice those pharmacies for the illegal kickbacks owed to NHS for the referrals. Sabado ultimately caused a loss of $4.5 million to Tricare.

Sabado also conspired with the owners of DME supply companies to submit false and fraudulent claims for medically unnecessary DME such as arm, leg, back, wrist, and neck braces to Medicare. Specifically, Sabado warehoused, packaged, and shipped thousands of fraudulent DME orders to Medicare beneficiaries. Sabado knew that the DME orders were supported by sham prescriptions written by telemedicine physicians who, in many instances, never spoke with or examined the Medicare beneficiaries for whom the physicians ordered DME. Nonetheless, Sabado continued to package and ship DME that Medicare beneficiaries neither requested nor needed.

For his part in this scheme, Sabado received between $5 and $15 for each medically unnecessary brace he shipped. Sabado also received a percentage of all Medicare reimbursement for the braces. Sabado ultimately caused a loss of almost $70 million to Medicare.

Sabado further engaged in similar conduct involving the submission of false and fraudulent claims to Tricare, the New Jersey State Health Benefits Program, and private health care benefits programs for expensive and medically unnecessary compounded medication in other states.

Brett Sabado, 34, of Sandy Springs, Georgia, was sentenced by U.S. District Judge Thomas W. Thrash, Jr., to five years in prison to be followed by three years of supervised release.

This case was investigated by the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Department of Health and Human Services - Office of Inspector General, the Federal Bureau of Investigation, and the Defense Criminal Investigative Service.

The civil resolution was reached by Assistant U.S. Attorney Mellori Lumpkin-Dawson. The criminal case was prosecuted by Assistant U.S. Attorneys Angela Adams and Bernita Malloy in the Northern District of Georgia. A related case in the Southern District of California, United States v. Charles Ronald Green and Melinda Elizabeth Green, Case No. 3:20-cr-01566-DMS, SDCA (San Diego)), was prosecuted by Assistant U.S. Attorneys Valerie Chu and Kevin Larsen. 

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 arraigned on federal charges of conspiracy and money laundering.  Otufale was indicted by a federal grand jury on June 21, 2022

“Money launderers function as the financiers of criminal organizations, enabling the victimization of our communities while hiding behind a shield of anonymity built through a maze of aliases, bank accounts, and business transactions,” said U.S. Attorney Ryan K. Buchanan.  “We will continue to bring sophisticated money launderers to justice, especially the criminals who exploited the pandemic to steal from those in need.”

“It is disheartening to see the lengths that some individuals will go to take advantage of people in need during a national and world crisis,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “No matter how elaborate or complicated the fraud scheme, the FBI and our partners will work to uncover it and bring those responsible to justice.”

“An important mission of the Office of Inspector General is to investigate allegations of fraud related to unemployment insurance benefit programs. We will continue to work with our law enforcement partners to investigate these types of allegations,” stated Mathew Broadhurst, Special Agent-in-Charge, Atlanta 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. 

Oluwagbemiga Otufale allegedly laundered money procured from fraudulent unemployment claims submitted to state employment agencies in Washington, Illinois, and Massachusetts.  These claims were filed using stolen personally identifiable information of over a hundred individuals.  Otufale also allegedly laundered proceeds from a business email compromise scheme targeting two Georgia businesses.  Additionally, Otufale allegedly created multiple aliases and sham business entities to open financial accounts in which he deposited the fraudulent proceeds.        

Oluwagbemiga Otufale, a/k/a Joseph Perrone, a/k/a Kelvin Benjamin, a/k/a Abraham Young, 44, of Riverdale, Georgia, who was arraigned before U.S. Magistrate Judge J. Elizabeth McBath, was charged with money laundering conspiracy and concealment money laundering as a result of these activities.  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 Federal Bureau of Investigation and the U.S. Department of Labor, Office of Inspector General.

Assistant U.S. Attorneys Sarah E. Klapman and Tracia King 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

The U.S. Attorney’s Office for the Northern District of Georgia is part of the Georgia Unemployment Insurance Task Force.  The Task Force is comprised of federal and state agencies throughout Georgia that are dedicated to combat COVID-related Unemployment Insurance Benefit Fraud.

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.