Northern District of Georgia

ATLANTA - Aziz Choukri has pleaded guilty to wire fraud after admitting that he defrauded a 79-year-old retiree of approximately $650,000.

“Fraud schemes targeting the elderly are a particularly egregious type of fraud that often deplete the victims’ entire life savings,” said U.S. Attorney Ryan K. Buchanan. “This conviction affirms our commitment to prosecuting those who prey on our most vulnerable citizens.”

“The victimization of the elderly through financial scams represent one of the most significant types of cases the Secret Service investigates to combat fraud,” said Special Agent in Charge Steven Baisel of the U.S. Secret Service Atlanta Field Office. “Those who prey on the vulnerable and cheat them out of their life savings through their cunning lies and financial schemes must recognize that the Secret Service, along with our many law enforcement partners, will prosecute them to the fullest extent of the law and bring a measure of justice to the victims.”

According to U.S. Attorney Buchanan, the charges and other information presented in court: In 2016, Choukri met the victim, then 79 years old, at a fitness facility in Alpharetta, Georgia. Choukri cultivated a close relationship with the elderly victim to gain his trust.  Choukri convinced the victim to invest almost $650,000 in his music management company.  Choukri convinced the victim that the investment carried no risk and was guaranteed to earn a return. 

Specifically, Choukri promised that the victim would be compensated the full amount of any investment, plus interest, and even told the victim that he would guarantee him a $1,000,000 return.  Choukri did not tell the victim that the money would be used to fund Choukri’s lifestyle. 

Instead of using the money as an investment in a music business, Choukri used the victim’s money largely on Choukri’s own personal expenses, including, among other things, Choukri’s activities of daily living (e.g., fast food, gas, and uber), payments for his daughter’s college tuition and sorority expenses, dental work for his girlfriend, payments to his girlfriend for tutoring and babysitting, and repayment of a personal loan.  Choukri also transferred a significant amount of the victim’s money to his children’s accounts and withdrew thousands of dollars in cash.  Notably, Choukri’s accounts show that almost all of Choukri’s income in 2016 and 2017 was from the victim. 

Aziz Choukri, 59, of Johns Creek, Georgia, pleaded guilty to wire fraud on June 16, 2022.  Sentencing is scheduled for September 14, 2022, before U.S. District Court Judge Eleanor L. Ross.

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

Assistant U.S. Attorneys Angela Adams and Tal C. Chaiken are prosecuting the case.

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.

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, who directed the dumping of over 100 drums and other containers of chemicals, including hazardous waste, has pleaded guilty to a charge of disposal of hazardous waste without a permit.

“Ali disregarded the health and safety of citizens by trying to conceal his illegal dumping,” said U.S. Attorney Ryan K. Buchanan.  “He also broke the law regarding the proper handling of hazardous materials.  Our office takes protection of the environment very seriously and will continue to prosecute those who seek to destroy our precious natural resources.”

“The defendant illegally disposed of numerous drums containing hazardous waste in violation of the Resource Conservation and Recovery Act,” said Special Agent in Charge Charles Carfagno of EPA-CID’s Southeast Area Branch. “This guilty plea demonstrates that EPA will hold accountable for such criminal behavior and that EPA and DOJ will continue to vigorously prosecute those that choose to violate our environmental statutes.”

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 and is designed to protect human health and the environment by requiring the proper and safe management of hazardous waste from the time it is created until the time it is disposed of properly.  RCRA prohibits the treatment, storage, and disposal of hazardous waste without a permit issued under the statute.  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 the 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 had over 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 left 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.

Sentencing for Amin Ali, 56, of Dalton, Georgia, is scheduled for September 20, 2022, at 1:30 p.m. before U.S. District Judge Leigh Martin May.  Ali pleaded guilty on June 22, 2022.

This case is being investigated by the U.S. Environmental Protection Agency, Criminal Investigation Division.

Assistant U.S. Attorney Christopher J. Huber, Deputy Chief of the Complex Frauds Section, 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 - Ryan Meyung, a motocross instructor who traveled the country building motocross tracks and mentoring children has been indicted for multiple child exploitation offenses.

“Meyung allegedly produced, transported, and possessed child pornography while working with children as a motocross coach,” said U.S. Attorney Ryan K. Buchanan. “Victimizing children is heinous and horrific.  With the help of our law enforcement partners, we will relentlessly pursue these types of sexual predators.”

“There is no place in our society for those who prey on innocent children and individuals who use their position of trust to gain access to children are particularly heinous,” said HSI Nashville Special Agent in Charge Jerry C. Templet. “We are thankful to our special agents and our law enforcement partners who do the difficult but important work of investigating these crimes and safeguarding our nation’s children.”

According to U.S. Attorney Buchanan, the charges and other information presented in court: Ryan Meyung allegedly engaged six different minor victims in sexually explicit conduct to produce images of child sexual abuse, and transported and possessed visual images of child sexual abuse. The alleged crimes occurred between 2019 and 2021. He was arrested on state charges in December 2021 and has remained in custody.

Meyung was known to frequent states including Georgia, Indiana, Kentucky, Michigan, New Jersey, New York, Ohio, Oklahoma, Pennsylvania, and Tennessee.

Ryan Meyung, 30, was charged with six counts of producing child pornography, one count of transporting child pornography, and one count of possessing child pornography. 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 Homeland Security Investigation (HSI) Chattanooga jointly with the Hamilton County Sheriff’s Office (Tennessee), the Chattanooga Police Department, and HSI field offices throughout the country.

Assistant U.S. Attorney Erin N. Spritzer of the U.S. Attorney’s Office for the Northern District of Georgia, and the Justice Department’s Child Exploitation and Obscenity Section (CEOS) are prosecuting the case. 

Investigators believe Meyung may have victimized additional children. If you have information related to Meyung that could further law enforcement’s investigation, or if you suspect that a particular child may have been one of his victims, you are encouraged to call the HSI Tip-line at 866-347-2423 or https://www.ice.gov/tipline.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

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

ATLANTA - A federal grand jury has indicted a company and three individuals in an alleged fraud scheme involving military contracts totaling over $7 million.  The three-count indictment charges Envistacom LLC, its President Alan Carson, a vice president Valerie Hayes, and the owner of another company, Philip Flores, each with one count of conspiracy to defraud the United States and two counts of major fraud.

“The United States relies upon its contractors to be honest and forthright in their dealings,” said U.S. Attorney Ryan K. Buchanan.  “When they allegedly provide false information to obtain contracts, they harm the American taxpayer and the integrity of the system.  We will diligently work to bring such companies and their executives to justice.”

“Collusion and fraud undermine competition in the procurement process to the detriment of U.S. taxpayers,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “Investigating and prosecuting criminal activity remains a top priority for the Department of Justice and all members of the Procurement Collusion Strike Force.”

“The indictment of these individuals demonstrates the resolve and dedication of the Defense Criminal Investigative Service and our investigative partners in protecting the integrity of the Department of Defense contracting system,” said Special Agent in Charge Cynthia A. Bruce, Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “Contractors who circumvent the contracting process for their own personal gain will be thoroughly investigated and held accountable for their fraudulent actions.”

“Such alleged activity by government contractors who provide services to the Army will not be tolerated,” said Special Agent in Charge L. Scott Moreland of the U.S. Army Criminal Investigation Division’s (Army CID) Major Procurement Fraud Field Office. “We will continue to investigate allegations of this nature and do everything in our power to see that persons responsible are held accountable and brought to justice.”

According to U.S. Attorney Buchanan and the indictment: From at least September 2014 through at least November 2016, the defendants and others conspired by preparing and procuring purported “competitive quotes” from other companies, which were sham quotes that were intentionally higher than the proposal prices and/or price quotes from Envistacom and Flores’ company to ensure the sole-source awards.

The conspirators also concealed that the defendants prepared the independent government cost estimates and other procurement documents for the award of these contracts and made false statements, representations and material omissions to federal government contracting officials regarding these estimates being legitimate independent cost estimates and the sham quotes being “competitive.”

Alan Carson, 51, of Atlanta, Georgia, Valerie Hayes, 56, of Callaway, Maryland, and Philip Flores, 51, of Fredericksburg, Virginia, were indicted on May 25, 2022.  The defendants are 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 Defense Criminal Investigative Service and the U.S. Army Criminal Investigation Division.

Assistant U.S. Attorney Christopher Huber for the Northern District of Georgia, and the DOJ Antitrust Division’s Washington Criminal II Section are prosecuting the case.

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

ATLANTA - The U.S. Attorney's Office for the Northern District of Georgia has entered into a settlement agreement with The Villages at Carver Family YMCA located in Atlanta, Georgia, to resolve allegations that the YMCA violated the Americans with Disabilities Act (ADA) by failing to reasonably modify policies and procedures for a child with diabetes.

“After-school programming provides opportunities for children to socialize with other children, and these programs are necessary for parents and caregivers who work and need a safe place for the children to go after school,” said U.S. Attorney Ryan K. Buchanan.  “Children with diabetes should have an equal opportunity to participate in these after-school programs, and we commend the YMCA for working cooperatively with my office to achieve this goal.”

This matter was initiated by a complaint filed with the Department of Justice Civil Rights Division.  The complainant alleged that the Atlanta YMCA violated the ADA by denying a child the opportunity to participate in the YMCA's after-school program because of her diabetes.  The YMCA refused to provide daily insulin injections to the child, which left her unable to attend the after-school program.  

Title III of the ADA prohibits discrimination on the basis of disability in the full and equal enjoyment of the goods, services, facilities, and privileges of any place of public accommodation.  The Atlanta YMCA is a private entity that operates childcare facilities that are places of "public accommodation" within the meaning of Title III of the ADA.   

Based on the Agreement, the YMCA will adopt a non-discrimination policy to ensure ADA compliance.  The YMCA will also provide mandatory training for all employees who work in the after-school program.  Additionally, the YMCA will pay $5,000 in compensation to the complainant.   

This matter was handled by Assistant U.S. Attorney, Aileen Bell Hughes, Special Counsel and former Assistant U.S. Attorney Soo Jo, Civil Rights Unit, U.S. Attorney’s Office.

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 - Quantavious Cedron Arnold and Ericka Brewster have been sentenced to federal prison for carrying out a two-week crime spree during which they robbed a bank and fled in a car Arnold had stolen at gunpoint just two days earlier.

“Outstanding coordination between the FBI and local law enforcement ended Arnold’s crime spree,” said U.S. Attorney Ryan K. Buchanan. “This office will continue to target individuals like Arnold and Brewster who perpetrate, abet, and seek to profit from violent crime in our community.”

“Both Arnold and Brewster have extensive violent criminal histories, and once again put innocent civilians at risk during the span of their two-week crime spree,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The sentence demonstrates the FBI’s commitment to work with our local law enforcement partners to convict these repeat offenders at the federal level, where they face stiffer penalties and no opportunity for parole.”

“Keeping the citizens and visitors of the City of Atlanta is a priority for the Atlanta Police Department. The convictions of Quantavious Cedron Arnold and Ericka Brewster sends a resounding message to criminals that violent crimes will not be tolerated in our city,” said Atlanta Interim Police Chief Darin Schierbaum. “The Atlanta Police Department is proud of the effort put forth by investigators to bring these criminals to justice. The sentencing of repeat offenders proves the effectiveness of our law enforcement partnerships, the dedication of the members of the various agencies, and our commitment to solving and closing cases.”

According to U.S. Attorney Buchanan, the charges and other information presented in court: On November 12, 2019, Arnold and two other people perpetrated a carjacking outside a convenience store in southwest Atlanta. Arnold threatened his victim with a semiautomatic pistol equipped with an extended magazine before he and his accomplices stole the man’s car.

Two days later, on November 14, 2019, Arnold used the stolen car to drive himself and his girlfriend, Brewster, to a bank branch in DeKalb County, Georgia. Arnold and Brewster entered the bank and waited in line until Arnold approached the teller counter, pulled out a gun, and threatened to kill people unless the teller surrendered thousands of dollars of cash. After pocketing the money, Arnold and Brewster fled from the bank and back into the stolen car, which they later abandoned.

A week later, an Atlanta police officer located and arrested Arnold in a wooded area down the block from the store where Arnold had committed the carjacking just ten days earlier. At the time of his arrest, Arnold had the gun used during the bank robbery, a distribution quantity of crack cocaine, and a digital scale. FBI agents arrested Brewster later.

Both Arnold and Brewster are convicted felons with extensive criminal histories. Brewster’s history includes convictions for fraud, theft, and forgery offenses. Arnold’s history includes repeated convictions for unlawful gun possession, drug trafficking, and violent crimes, such as aggravated assault, battery, and burglary. Both defendants were serving multiple terms of state probation when they committed their federal crimes. Arnold had been sentenced to two of those probation terms less than four months before he committed the carjacking and bank robbery.

U.S. District Judge Leigh Martin May sentenced the defendants as follows:

• Quantavious Cedron Arnold, 30, of Atlanta, Georgia, was sentenced on June 14, 2022, to 25 years of imprisonment, to be followed by three years of supervised release, and ordered to pay $8,200.00 in restitution. Arnold was convicted at trial on January 14, 2022, of possession of cocaine with intent to distribute, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a convicted felon. Before the trial, he pled guilty to carjacking, armed bank robbery, possession of a firearm by a convicted felon, and two counts of brandishing a firearm during a crime of violence.

• Ericka Brewster, 31, of Jonesboro, Georgia, was sentenced on November 12, 2020, to four years, six months of imprisonment, to be followed by five years of supervised release, and ordered to pay $8,200 in restitution. Brewster pled guilty on November 6, 2020, to one count of armed bank robbery.

This case was investigated by the Federal Bureau of Investigation with assistance from the Atlanta Police Department, DeKalb County Police Department, Georgia Bureau of Investigation, and Bureau of Alcohol, Tobacco, Firearms and Explosives.

Assistant U.S. Attorneys Theodore S. Hertzberg and Annalise K. Peters 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 - Theresa Pickering has been arraigned on federal charges of health care fraud, aggravated identity theft, and distribution of controlled substances.  Pickering was indicted by a federal grand jury on June 7, 2022.

“By posing as a licensed physician's assistant, Pickering placed her own interests above the safety of the patients that entrusted her with their most important asset – their health,” said U.S. Attorney Ryan K. Buchanan.  “This office will use every tool at its disposal to combat this type of unprofessional, unsafe, and unlawful behavior.”

“Pickering had a chance to turn her life around after serving time for previous fraud, but instead choose to commit further crimes, proving that she has not learned from her prior convictions,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI and our partners will not tolerate anyone that puts our citizen’s health care at risk, and we remain determined to expose and bring them to justice.”

“This provider took advantage of her access to patient information for financial gain, undermining both patient trust and the integrity of federal health care programs,” said Tamala Miles, Special Agent in Charge with the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG is proud to work alongside our law enforcement partners to investigate and prosecute such egregious conduct.”

“When a provider seeks to practice medicine without a license, it puts patients at great risk,” said Amy K. Parker, Special Agent in Charge, Office of Personnel Management, Office of the Inspector General (OPM-OIG). “The OPM OIG will always prioritize keeping patients safe and holding unscrupulous providers accountable.”

According to U.S. Attorney Buchanan, the charges, and other information presented in court:  On or about September 24, 2019, Pickering was hired as a licensed physician’s assistant a family practice in Norcross, Georgia.  Pickering, however, was not a licensed physician’s assistant in Georgia and has not been a licensed physician’s assistant in any state since March 2014. 

After serving a prison sentence for 2015 state and federal fraud and narcotics convictions related to Pickering’s illegal practice as a physician’s assistant in Mississippi, Pickering relocated to Georgia and obtained employment at the family practice in Norcross. 

While employed there, Pickering treated patients, diagnoses illnesses, ordered diagnostic tests and lab work, handled sick visits and prescribed drugs to patients, none of which was authorized by law based on her lack of licensure and exclusion from federal health care programs. 

Pickering also issued prescriptions, while posing as a physician’s assistant, including prescriptions for controlled substances, in the name of Doctor 1, a physician contracted by the practice, without Doctor 1’s permission.  Pickering caused the practice to submit at least approximately $147,000 in fraudulent claims for reimbursement to Medicare and numerous private insurance companies.

Theresa Pickering, 53, of Norcross, Georgia, was arraigned before U.S. Magistrate Judge Russell G. Vineyard.  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, Department of Health and Human Services, Office of Inspector General, and Office of Personnel Management, Office of the Inspector General.

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 - Bryan David Somers has been sentenced to 12 years and six months in prison for the receipt and distribution of child pornography.  Prior to his arrest, Somers was an EMT and a substitute teacher at a local elementary school. 

“By receiving and distributing these images, Somers participated in the continuing abuse and exploitation of children,” said U.S. Attorney Ryan K. Buchanan.  “The pictures and videos document the abuse of real children at the hands of depraved individuals.  Distributing those images over the internet means the most horrifying thing in a child’s life is shared around the world, in perpetuity.” 

“Stopping predators like Somers, who collect and distribute these horrific images of children being abused, is one of our highest priorities,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “We will continue to work with our law enforcement partners to ensure everyone involved in this unconscionable crime faces justice and our children protected.”

According to U.S. Attorney Buchanan, the charges and other information presented in court:  In June 2019, a Polk County Police Officer, who is a member of the Georgia Internet Crimes Against Children task force, discovered a computer in Cartersville, Georgia was sharing child pornography over the internet.  The lead was sent to the Bartow County Sheriff’s Office and Homeland Security Investigations.

During their investigation, agents learned that the IP address sharing child pornography was assigned to Somers.  Agents also learned that Somers was employed as an EMT and a substitute teacher at a local elementary school.  HSI agents, with assistance from the Georgia Bureau of Investigation, Bartow County Sheriff’s Office, and Polk County Police Department, executed a federal search warrant at Somers’s townhouse in July 2019. 

Law enforcement seized and searched the computers found in Somers’s bedroom.  A forensic analysis resulted in the recovery of a file that contained child pornography and revealed that Somers had downloaded hundreds of files with titles indicating they contained child pornography. Investigators also determined that Somers had attempted to remove these images from his devices to prevent discovery of this evidence.  After a trial in March of 2022, a jury of Somers’s peers found him guilty of distributing and receiving child pornography.

Bryan David Somers, 43, of Cartersville, Georgia, was sentenced by U.S. District Judge J.P. Boulee to 12 years, six months in prison, to be followed by 25 years of supervised release for the receipt and distribution of child pornography. 

This case was investigated by the Department of Homeland Security, with assistance from the Georgia Bureau of Investigations, the Bartow County Sheriff’s Office, and the Polk County Police Department.

Assistant U.S. Attorneys Katherine I. Terry and 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.

GAINESVILLE, Ga. - Larry Steven Grogan has been charged by a federal grand jury with the murder of U.S. Postal Service mail carrier Asa Wood, Jr. In connection to the murder, Grogan is also charged with assault on a federal employee using a deadly weapon, discharge of a firearm resulting in death, and felon in possession of a firearm.                                                                                                               

“Asa Wood dedicated his life to serving his family and his community,” said U.S. Attorney Ryan K. Buchanan. “His murder is tragic and heartbreaking. The exceptional joint investigation conducted by the U.S. Postal Inspection Service and Banks County Sheriff’s Office resulted in the defendant’s arrest, and we are committed to seeking justice for Mr. Wood and his family.”

“The Postal Inspection Service extends our condolences to the family and close friends of Asa Wood, Jr who served his community as a diligent letter carrier and a beloved member of the U.S. Postal Service family,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division. “Postal Inspectors were fortunate to work alongside the Banks County Sheriff’s Office to bring a swift resolution to this case by taking a dangerous criminal off the street. The protection of our postal employees is an integral part of our mission, and we are pleased to see justice being served against this defendant who chose to callously take the life of Mr. Wood.”

“We are tremendously grateful for the remarkable collaboration of agencies that emerged during this tragic incident that led to the capture of the perpetrator,” stated Banks County Sheriff Carlton Speed.  “Mr. Wood was a beloved husband, father and community member.  He is greatly missed by all who had the gift of knowing him.”

According to U.S. Attorney Buchanan and the indictment: On August 7, 2021, Asa Wood, Jr., was delivering mail in Commerce, Georgia. He had been a mail carrier for over 20 years. While he was temporarily stopped near a mailbox, Grogan allegedly shot Wood in the left femur and drove away. Asa Wood died in his postal vehicle at the scene.

Residents on the road where the shooting occurred called 911 and provided information that helped identify Grogan as the shooter. Later that day, Banks County Sheriff’s Office deputies encountered Grogan and attempted to stop him. Grogan then exited his car and allegedly shot at the deputies. Banks County deputies successfully arrested Grogan without injury.

Larry Steven Grogan, 50, of Danielsville, Georgia, has been charged with murder, assault on a federal employee using a deadly weapon, discharge of a firearm resulting in death, and felon in possession of a firearm.  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 U.S. Postal Inspection Service and the Banks County Sheriff’s Office.

Assistant U.S. Attorney Jennifer Keen 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 - Dawuan Na’jee Williams, a multi-convicted felon, has been sentenced to federal prison for using another person’s name and date of birth to purchase more than two dozen firearms, some of which were later used in a shooting and other crimes.                                                                                              

“Because he’s a felon several times over, Williams could not lawfully possess or purchase firearms,” said U.S. Attorney Ryan K. Buchanan. “He then skirted federal law by utilizing stolen identification information to purchase firearms and will spend the next decade in federal prison.”

The Bureau of Alcohol, Tobacco Firearms and Explosives, Special Agent in Charge, Jeffrey L. Matthews, of the Newark Field Division said, “This is a reminder that all would-be firearms traffickers and those that contribute to violent crime in our communities are on our radar and there is no safe haven.  ATF is deliberate and calculated in our approach to stem violent gun crimes from devastating our neighborhoods, while exploiting investigative leads derived from the National Integrated Ballistic Information Network (NIBIN), connecting crime guns to crime scenes, and leveraging our expertise to support investigations across multiple jurisdictions.”

According to U.S. Attorney Buchanan, the charges and other information presented in court: Williams purchased more than two dozen firearms and large-capacity ammunition magazines from federally licensed firearms dealers in North Georgia and the Atlanta metro area between May 2020 and June 2021. Some of these guns were used in crimes just days after Williams obtained them.

For example, in May 2021, police officers in Newark, New Jersey, recovered a loaded semiautomatic pistol from a crime scene just eight days after Williams bought that firearm. In early July 2021, police officers in Tallahassee, Fla. responded to the location of a shooting and recovered a pistol that Williams purchased approximately four weeks earlier. In late July 2021, ATF agents seized several guns from Williams’s residence. Those guns included a pistol Williams purchased two months before ATF recovered it. NIBIN analysis linked that pistol to a shell casing recovered from the scene of the Tallahassee shooting. In connection with that incident, authorities in Florida charged Williams with various offenses, including attempted murder and aggravated assault. Those charges remain pending.

During the entirety of his buying spree, Williams was strictly prohibited from purchasing firearms because he had been convicted previously of numerous felonies, including home invasion robbery, robbery, terroristic threats, kidnapping, aggravated battery, drug trafficking, grand theft, and criminal use of personal identification information. During each sale, Williams used identification information belonging to a victim who was unaware of Williams’s identity theft.

Dawuan Na’jee Williams, 40, of Jonesboro, Georgia, was sentenced by U.S. District Judge Steven D. Grimberg to ten years in prison, to be followed by three years of supervised release. Williams pleaded guilty on February 9, 2022, to one count of presenting false identification to a federally licensed firearms dealer.

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

Assistant U.S. Attorney Theodore S. Hertzberg, Firearms Trafficking Coordinator for the Northern District of Georgia, 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 - Thomas Ukoshovbera A. Gbenedio has been sentenced for illegally dispensing and distributing controlled substances from his pharmacy. After Gbenedio was found guilty by a jury, he attempted to flee the country to avoid prison.                                                                                               

“Gbenedio used his pharmacy as a pill-mill to supply highly-addictive narcotics to drug dealers and drug addicts,” said U.S. Attorney Ryan K. Buchanan. “His greed exacerbated the opioid epidemic that continues to plague our community.  After the jury found him guilty, he then attempted to leave the country, but was quickly apprehended by law enforcement. Now, he will serve a significant prison sentence.”

“As the nationwide trend toward the non-medical use of prescription drugs swells, the need for an organized, immediate, and effective response increases correspondingly,” said the Special Agent in Charge of the DEA Atlanta Field Division Robert J. Murphy. “The abuse of a trusted medical professional (a pharmacist in this case) like Mr. Gbenedio will not be tolerated. He will now face the consequences of his unlawful acts.  This case is a perfect example of the success that can be achieved when DEA and its law enforcement partners work collaboratively confront, engage and eliminate the distribution of controlled substances by medical practitioners. Doing so will help to stem the tide against this country’s opioid epidemic.”   

“Justice is served due to collaborative efforts of multiple law enforcement partnerships,” said Michael Yeager, U.S. Marshal for the Northern District of Georgia.

“This investigation emphasizes the commitment of the FBI and our partners in combatting the opioid epidemic in our country,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The public must trust in medical professionals, and the FBI will continue to investigate those who abuse their responsibilities and endanger others by engaging in criminal activity.”

According to U.S. Attorney Buchanan, the charges and other information presented in court: Gbenedio was a licensed pharmacist who owned Better Way Pharmacy in Mableton, Georgia. An investigation into Gbenedio began after Georgia Drug & Narcotics Agency (GDNA) agents conducted a routine inspection at Better Way and noticed that several of Gbenedio’s customers were driving long distances - including from Kentucky and Alabama - to get prescriptions filled at Better Way. Several of the prescriptions were for large quantities of highly addictive opioids, like oxycodone, and many of the prescriptions were purportedly from the same physician.

The investigation later revealed that the prescriptions being filled by Gbenedio between 2014 and 2016 were not real prescriptions; they were fake or fraudulent and otherwise illegal. Gbenedio charged his customers up to $1,000 to fill the illegal prescriptions for controlled substances.

After a two-week jury trial, Gbenedio was convicted of 70 counts of illegally dispensing and distributing controlled substances and one count of refusing an administrative inspection warrant.

Once the jury announced its verdict, Gbenedio was ordered to report to Probation for location monitoring. Instead of reporting, Gbenedio attempted to flee. He ultimately was apprehended at the Dallas-Fort Worth airport with the assistance of U.S. Marshals Service, Customs and Border Protection, and the Federal Bureau of Investigation.

Thomas Ukoshovbera A. Gbenedio, 72, of Mableton, Georgia, was sentenced by U.S. District Judge Thomas W. Thrash, Jr., to 15 years, eight months in prison to be followed by three years of supervised release and ordered to pay a fine in the amount of $200,000.  Gbenedio had been found guilty by a jury on October 29, 2021.

This case was investigated by the Drug Enforcement Administration, U.S. Marshals Service, and Federal Bureau of Investigation.

Assistant U.S. Attorneys Angela Adams and Erin N. Spritzer 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, Ga. – Following a three-week trial, a federal jury found Todd and Julie Chrisley guilty of conspiring to defraud community banks out of more than $30 million of fraudulent loans. The jury also convicted Todd and Julie Chrisley and their accountant, Peter Tarantino, of a number of tax crimes, including conspiring to defraud the IRS. The Chrisleys were found guilty of tax evasion, and Peter Tarantino was found guilty of filing two false corporate tax returns on behalf of the Chrisleys’ company. The jury also found Julie Chrisley guilty of wire fraud and obstruction of justice. 

“The jury found that Todd and Julie Chrisley committed multiple fraud schemes for several years and their accountant, Peter Tarantino, filed false corporate tax returns on their behalf,” said U.S. Attorney Ryan K. Buchanan.  “This office and our partner agencies will continue to vigorously investigate and prosecute white collar criminals who flout the law.”

“As today’s outcome shows, when you lie, cheat and steal, justice is blind as to your fame, your fortune, and your position,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “In the end, when driven by greed, the verdict of guilty on all counts for these three defendants proves once again that financial crimes do not pay.”

“Todd Chrisley, Julie Chrisley and their Certified Public Accountant, Peter Tarantino, conspired to evade the assessment and payment of the Chrisley’s income taxes.  The Chrisleys and Tarantino knew the law was clear on taxable income and who is required to file and pay taxes,” said James E. Dorsey, Special Agent in Charge, IRS-Criminal Investigation. “These convictions should send a clear message regardless of your fame or notoriety, everyone will be held accountable for paying their fair share of taxes.”

According to U.S. Attorney Buchanan, the charges and other information presented in court: Before Todd and Julie Chrisley became reality television stars, they conspired to defraud community banks in the Atlanta area to obtain more than $30 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 banks to obtain the millions of dollars in fraudulent loans. The Chrisleys then 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 the fraudulently obtained loans.  

The evidence further showed that in 2014, while Todd Chrisley was in bankruptcy proceedings, Julie Chrisley again manufactured financial documents and lied to real estate agents to obtain a luxury rental house in Los Angeles, California.  As soon as the Chrisleys began renting the house, they failed to pay rent, and the homeowner filed an eviction lawsuit.

Around the time that Todd Chrisley filed for bankruptcy, the Chrisleys became the stars of their own reality show, which was recorded in Atlanta and later in Nashville.  The evidence at trial showed that while they were 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 that received their income earned from their show and other entertainment ventures. 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. One day after the IRS requested information about bank accounts in Julie Chrisley’s name, the Chrisleys transferred ownership of the corporate bank account to Todd Chrisley’s mother in an effort to further hide his income from the IRS.  All the while, Todd Chrisley operated the loan-out company behind the scenes and controlled the company’s purse strings.

While the Chrisleys were earning millions and evading paying Todd Chrisley’s delinquent back taxes, they also failed to file tax returns or pay any taxes for the 2013, 2014, 2015, and 2016 tax years. At one point, Todd Chrisley falsely claimed on a radio program that he paid $750,000 to $1 million in federal income taxes every year, even though he had not filed or paid his personal income tax returns for years. Tarantino was also 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. 

Finally, Julie Chrisley was convicted of obstruction of justice. After learning of the grand jury investigation, she 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 Todd Chrisley’s mother. Julie Chrisley transmitted this document with the intent of impeding the grand jury’s investigation into her and her husband and avoiding prosecution.

Sentencing for Todd and Julie Chrisley, and Peter Tarantino, has been scheduled for Thursday, October 6, 2022, at 9:30 a.m.

This case is being investigated by the FBI and IRS Criminal Investigation. 

Assistant U.S. Attorneys Thomas J. Krepp and Annalise K. Peters 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 - Rashad Sargeant has been sentenced for his role in trafficking firearms to Barbados. Together with his co-defendant, David Johnson, Sargeant shipped at least 30 firearms to Barbados after obliterating the serial numbers from the firearms and packing them inside false compartments in boxes.

“Firearms trafficking fuels violence in communities within the United States and abroad,” said U.S. Attorney Ryan K. Buchanan. “We will continue to actively leverage partnerships with federal, state, local, and international law enforcement partners to stem the illegal flow of firearms.”

“This case and ultimate conviction highlights the fact that illegal gun trafficking not only affects our local communities but has implications far beyond our borders” said ATF Assistant Special Agent in Charge Alicia Jones. “At a time when gun crime is on the rise, this case reinforces the need for ATF and our partners to be vigilant in investigating and prosecuting individuals who supply both the domestic and international illegal arms trade.”

“Disrupting the flow of illegal guns inevitably saves lives and reduces overall crime, so I’m glad we were able to stop this scheme to illegally export guns to Barbados,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Cases like this highlight the great results that can be achieved when agencies work together to protect our communities.”

“The Office of Export Enforcement is committed to disrupting the illegal export of firearms from the United States,” said Nasir Khan, Acting Special Agent in Charge of the U.S. Department of Commerce’s Office of Export Enforcement, Miami Field Office. “We will continue to work with U.S. and international law enforcement partners to penalize violators of our export laws.”

According to U.S. Attorney Buchanan, the charges and other information presented in court: David Johnson recruited Shunquez Stephens, and others to unlawfully purchase guns from federally licenses firearms dealers. Stephens, and the other “straw purchasers”, made false statements to the licensed dealers by swearing that that they were purchasing the guns for themselves.

Sargeant and Johnson would then take possession of the guns and use false identifications to mail the guns to Barbados through common carriers like UPS, FedEx, and DHL.

Rashad Sargeant, 27, of College Park, Georgia, has been sentenced to three years, ten months in prison to be followed by three years of supervised release after pleading guilty on September 2, 2021.

David Johnson, 31, of Belleville, Illinois, was previously sentenced on March 17, 2022, and sentenced to three years, ten months in prison to be followed by three years of supervised release after pleading guilty on July 22, 2021.

Shunquez Stephens, 28, of Flowery Branch, Georgia, was previously sentenced on September 30, 2021, and sentenced to three years of probation after pleading guilty on June 21, 2021.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Bureau of Industry and Security, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.

Assistant U.S. Attorney Jennifer Keen 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 - The Department of Justice announced it has reached a settlement agreement with DeKalb County, Georgia, that will resolve its lawsuit alleging the county violated Title VII of the Civil Rights Act of 1964 when it retaliated against former administrative assistant Cemetra Brooks, first by extending her probationary period and then by terminating her employment during the extended period, because she made a sexual harassment complaint. Title VII is a federal statute that prohibits employment discrimination on the basis of race, color, national origin, sex and religion and prohibits retaliation against employees for opposing employment practices that are discriminatory under Title VII.

“Discrimination in the workplace is toxic,” said U.S. Attorney Ryan K. Buchanan.  “An employee who faces discrimination in the workplace should be able to freely exercise their rights under Title VII without fear of retaliation.”

“Probationary employees are especially vulnerable to discrimination as they have fewer employment protections than permanent employees and are often reluctant to file a complaint since it could easily cost them their jobs,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “This settlement agreement underscores that Title VII’s protections apply equally to probationary employees. The Civil Rights Division stands ready to vigorously enforce the law when employees who complain about sexual harassment are subject to retaliation.”

According to the Justice Department’s complaint filed in the U.S. District Court for the Northern District of Georgia, during her initial six-month probation, Brooks filed a sexual harassment complaint with DeKalb County alleging her supervisor, the deputy director of the county’s Facilities Management Department, subjected her to unwelcome sexual advances, comments and conduct. these claims were later investigated and substantiated by the county. The United States’ lawsuit further alleges that, just one month after Brooks complained, the deputy director’s supervisor, the director, contacted human resources asking for information from the county’s still-active investigation of Brooks’ complaint that would help him fire Brooks while she remained on probation. According to the lawsuit, on advice of a high-level county official, the director extended Brooks’ probation by three months instead. However, near the end of her extended probation, the director fired Brooks without giving her any reason.

Under the settlement agreement, submitted for court entry and approval, the county will pay Brooks $190,000 for lost wages and compensatory damages. The agreement also requires the county to develop, and submit to the Justice Department for approval, anti-discrimination and anti-retaliation policies and to provide the supervisors and managers in its Facilities Management Department with training on those policies and on the types of workplace conduct that constitute unlawful employment practices under Title VII.   

The Atlanta District Office of the Equal Employment Opportunity Commission (EEOC) investigated and attempted to resolve Brooks’ charge of discrimination before referring it to the Department of Justice as an enforcement action. More information about the EEOC’s jurisdiction is available on its website at www.eeoc.gov. 

Assistant U.S. Attorney Aileen Bell-Hughes, Civil Rights Enforcement Coordinator, handled this matter for the U.S. Attorney’s Office for the Northern District of Georgia. 

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 www.justice.gov/crt/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 – The U.S. Attorney’s Office for the Northern District of Georgia and the Fulton County District Attorney’s Office launched the second annual Project Safe Neighborhoods (PSN) Credible Messenger Youth Summer Violence Intervention (the “Summer Mentorship Program”) at the Atlanta Police Foundation’s At-Promise Center. 

“Last summer’s intensive mentoring efforts yielded a success rate of nearly 90%,” said U.S. Attorney Ryan K. Buchanan.  “This type of structured and deliberate engagement is proven to decrease recidivism and bolsters community safety.  We are pleased to partner with community leaders, law enforcement and families to support these youth, get them connected to college and career resources, and keep them actively engaged for the summer.” 

“Credible Messenger makes Fulton County safer. By matching at-risk youth with mentors who can help them avoid a life trapped in the criminal justice system, we save lives that would be lost to crime or to incarceration. Our partnership with the U.S. Attorney and the U.S Department of Justice to bring this program to Fulton County is a great example of what partnership and cooperation can do for the citizens we serve.”

“The successful transition of youth into their community is one of our top priorities,” said Tyrone Oliver, Commissioner of the Department of Juvenile Justice. “Our partnership with the Northern District of Georgia’s Project Safe Neighborhoods has demonstrated improved outcomes for justice-involved youth, including reducing recidivism.”

The Summer Mentorship Program will engage up to 25 youth between the ages of 14 and 17 who are on juvenile or adult probation, in a 10-week intensive mentorship initiative. Through 10 hours of mentor engagement per week, youth will participate in support forums, career readiness training, community engagement and evidenced-based, cognitive-behavioral, life-skills sessions utilizing the Forward Thinking and Project EGRESS Curriculum.  Youth who satisfy the program’s requirements will receive a weekly stipend, made possible by a generous donation from CHRIS 180, formerly known as CHRIS Kids.

This initiative is being implemented by a team of Southeast Credible Messengers, in connection with the PSN Prevention and Reentry strategy of the U.S. Attorney’s Office. Southeast Credible Messengers are a Community-Based Collaboration between organizations and individuals working together to achieve common goals: positive youth and young adult mentorship, recidivism reduction, public safety, and family & community engagement. The Southeast Credible Messenger team for this initiative includes the Offender Alumni Association, Inc. (OAA), Freedom is a Choice, Inc., EGRESS Consultants & Services, LLC., and Mothers Against Gang Violence, Inc.

We would also like to thank leadership from the Georgia Department of Juvenile Justice, Office of Reentry Services, Fulton County Juvenile Court and the local business community for their continued partnership and support of the summer program.

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

ATLANTA - The U.S. Attorney’s Office announced that the U.S. District Court for the Northern District of Georgia has approved a consent decree resolving the department’s Fair Housing Act lawsuit alleging race discrimination in housing by the owners and manager of two rental properties in Cedartown, Georgia. The defendants are Crimson Management LLC; Benefield Housing Partnership (doing business as Cedartown Commons); and Cedartown Housing Associates (doing business as Cedarwood Village).

“Access to housing opportunities remains unequal for African-American housing applicants all too often,” said U.S. Attorney Ryan K. Buchanan.  “My office will continue to devote resources to eradicate this injustice and we will continue to hold housing providers accountable for racial discrimination in violation of the Fair Housing Act.”

“It is unacceptable that race discrimination in housing persists in our nation more than a half-century after President Johnson signed the Fair Housing Act into law,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This Justice Department is committed to vigorously enforcing our civil rights laws by holding housing providers responsible when they perpetuate racial segregation or otherwise engage in prohibited discrimination.”

The lawsuit, filed in May 2020, alleged that the defendants steered Black housing applicants who are elderly or have a disability away from Cedarwood Village, a predominantly white housing complex, to Cedartown Commons, a housing complex that is inferior in appearance, location and amenities to Cedarwood Village.  Most residents of Cedartown Commons are Black. The lawsuit further alleged that the defendants subjected Black residents who are elderly or have a disability to less favorable rental terms, conditions and privileges as compared to similarly situated white tenants. The defendants’ policies allegedly perpetuated segregation at the two properties.    

This case was jointly litigated by attorneys of the U.S. Attorney’s Office for the Northern District of Georgia and the Justice Department’s Civil Rights Division. Under the court-approved decree, the defendants are required to pay $83,000 in damages to three former tenants who were allegedly harmed as a result of the defendants’ racial steering; pay a civil penalty to the United States; implement nondiscriminatory policies and procedures; complete fair-housing training; and submit periodic reports to the Justice Department.

The Justice Department’s Civil Rights Division enforces the Fair Housing Act, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability, and familial status.  More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt.  Individuals may report sexual harassment or other forms of housing discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-800-896-7743, e-mailing the Justice Department at fairhousing@usdoj.gov,  or submitting a report online at https://civilrights.justice.gov/.  Individuals may also report such discrimination by contacting the Department of Housing and Urban Development at 1-800-669-9777 or by filing a complaint online at https://www.hud.gov/fairhousing/fileacomplaint.

Assistant U.S. Attorney Aileen Bell-Hughes, Civil Rights Enforcement Coordinator, handled this matter for the U.S. Attorney’s Office for the Northern District of Georgia.

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, Ga. - A federal jury found Maurice Antonio Kent 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.                                                                                                             

“The 135 Pirus gang is a violent criminal organization whose members committed a multitude of crimes, including the horrific execution of a 17-year-old witness,” said U.S. Attorney Ryan K. Buchanan. “Kent and his fellow gang members demonstrated an absolute disregard for human life and have now been brought to justice as a result of the strong partnership between federal and local law enforcement. This case, which culminated in a jury verdict convicting Kent of all charges, reflects our office’s resolve to tirelessly investigate and prosecute gangs who drive violence in our communities.”

“The brutal and tragic violence perpetrated by Kent and his fellow gang members is completely shocking and deplorable,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “With this conviction, Kent will no longer be able to commit senseless violence and homicidal acts on our streets. The FBI remains unwavering in our resolve to work with our partners to ensure that individuals like Kent are held accountable for their crimes and to eliminate gang violence from our communities.”

“Gang and organized crime have no place in our community,” said Brookhaven Police Deputy Chief Brandon Gurley.  “Organized crime knows no boundaries, and neither should we.  The collaboration with the U.S. Attorney’s Office was instrumental to ensure that Kent and his associates were all held accountable for the violent crimes they committed in our city and throughout Georgia.” 

“In reference to this investigation, I’d like to credit the Violent Repeat Offender Program (VRO) which is a program conducted by the U.S. Attorney’s Office for the Northern District of Georgia and has been in place for many years,” said Cartersville Police Chief Frank McCann.  “The VRO program puts federal, state, and local law enforcement officers together monthly to take violent repeat offenders off our streets.  Positive results when we all work together!”

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.  Kent was a gang leader in northwest Georgia with leadership authority over members in the vicinity of Cartersville and Rome, Georgia.  The 135 Pirus are governed by a set of rules, which, among other commands, prohibit its members from cooperating with law enforcement. 

In the early morning hours of May 13, 2017, an argument occurred outside a Brookhaven 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 believed he was “snitching.”  Two days later, 135 Pirus gang members devised a plan to lure the teenager to Bartow County, Georgia, where they shot and killed him with Kent’s gun, leaving the boy’s body on a rural road.   

The jury also heard evidence that eight months prior to the nightclub shooting, in September 2016, 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. 

In addition to Maurice Antonio Kent a.k.a., “Savage Duze,” 32, of Cartersville, Georgia, a number of other 135 Pirus gang members and associates were previously convicted in this case, including:

• Christopher Nwanjoku, a.k.a. “Problem,” 30, a 135 Pirus leader from Lawrenceville, Georgia, was convicted of RICO Conspiracy;

• Jamel Dupree Hughes, a.k.a. “Savage,” 27, a 135 Pirus member from Atlanta, Georgia, was convicted of 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,” 29, a 135 Pirus member from Cartersville, Georgia, was convicted of murder in aid of racketeering and use of a firearm in furtherance of a crime of violence resulting in death;

• Jennifer Foutz, a.k.a. “Rose,” 30, a 135 Pirus member from Acworth, Georgia, was convicted of murder in aid of racketeering and use of a firearm in furtherance of a crime of violence resulting in death; and  

• Michael Kent, a.k.a. “Wikked,” 32, a 135 Pirus associate from Atlanta, Georgia, who is Maurice Antonio Kent’s twin brother, was convicted of RICO Conspiracy.

In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.  The sentencing hearing for Kent and the other defendants will be scheduled at a later date.

This case is being 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 the office’s Project Safe Neighborhoods (PSN) Co-coordinator, and Michael Herskowitz, Chief of the Cyber and Intellectual Property Crime Section, are prosecuting the case.

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

ATLANTA - John W. Oxendine has been arraigned on federal charges of conspiracy to commit health care fraud and conspiracy to commit money laundering.  Oxendine was indicted by a federal grand jury on May 17, 2022.   

The indictment alleges that Oxendine conspired to obtain kickbacks for unnecessary genetic and toxicology lab tests, and used his insurance business to hide those kickbacks,” said U.S. Attorney Ryan K. Buchanan.  “Patients go to their healthcare provider for treatment with the expectation that their treatment or test is necessary, not a scam for fraud.” 

“These allegations describe someone who was more motivated by personal greed than their duty to provide appropriate and necessary care to patients,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI, along with our partners, will continue to investigate healthcare fraud to ensure these individuals who willingly defraud the American people are brought to justice.”

“Providers who exploit their positions as health care professionals for financial gain undermine patient trust and waste taxpayer dollars,” said Special Agent in Charge Tamala E. Miles, with the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG will continue to work tirelessly alongside our law enforcement partners to investigate any bad actors who attempt to defraud federal health care programs.”

“Health care providers who engage in kickback schemes to maximize profits violate the integrity of the Department of Defense health care system and betray the trust of their patients,” stated Special Agent in Charge Cynthia A. Bruce, Department of Defense (DoD) Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office.  “Trusted healthcare professionals whose greed overcomes their moral obligations to those seeking medical treatment have no place in the DoD healthcare community and will be aggressively pursued for prosecution.”

According to U.S. Attorney Buchanan, the charges, and other information presented in court: John W. Oxendine allegedly conspired with Dr. Jeffrey Gallups and others to submit fraudulent insurance claims for medically unnecessary Pharmacogenetic, Molecular Genetic, and Toxicology testing.  Physicians associated with Jeffrey Gallups’s ENT practice were pressured to order medically unnecessary Pharmacogenetic, Molecular Genetic, and Toxicology testing from a testing lab in Texas.  As part of the health care fraud scheme, the lab company agreed to pay Oxendine and Gallups a kickback of 50% of the net profit for eligible specimens submitted by Gallups’s practice to the lab company for the testing. 

In total, the lab company submitted claims seeking over $2,500,000 in payment for laboratory tests ordered by Gallups’s practice.  The insurance companies paid over $600,000 to the lab company as a result of these claims.  The lab company then paid $260,000 in kickbacks through Oxendine's insurance services business.  Oxendine used a portion of the kickback money to pay debts on behalf of Gallups, paying a $150,000 charitable contribution and $70,000 in attorney’s fees.

This case is related to United States v. Gallups, 1:21-cr-00370-SCJ, in which Dr. Jeffrey Gallups pleaded guilty to health care fraud.

John W. Oxendine, 60, of Duluth, Georgia was indicted on May 17, 2022.  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, Department of Health and Human Services Office of the Inspector General, and the Defense Criminal Investigative Service.

Assistant U.S. Attorney Christopher J. Huber, Deputy Chief of the Complex Frauds Section, 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 – Julius Stoudemire and Jennifer Deramus have each been sentenced after their convictions for attempting to smuggle methamphetamine into United States Penitentiary Atlanta (“USP Atlanta”), a federal prison. 

“Introducing contraband into a federal prison endangers the safety and security of inmates, guards, and visitors alike,” said U.S. Attorney Ryan K. Buchanan.  “Jennifer Deramus, a correctional officer, was uniquely positioned to know those dangers and now faces significant prison time of her own.”

“Maintaining the secure environment of federal correctional facilities is key to the safety of staff, inmates, and the effort to deter future criminal conduct”, said Keri Farley, Special Agent in Charge of FBI Atlanta. “Thanks to the vigilant guards at USP Atlanta, Stoudemire and Deramus will be held accountable for their blatant criminal activity.”

According to U.S. Attorney Buchanan, the charges, and other information presented in court: In June 2019, Jennifer Deramus was a long-time correctional officer at a county jail in Prattville, Alabama.  Her fiancée, Julius Stoudemire, was an inmate at USP Atlanta.  On June 2, 2019, Deramus visited Stoudemire at USP Atlanta.  After she went to the visitors’ restroom in the general population visiting room, she carried a cylindrical package to her seat across from Stoudemire.  A guard watching the visitation area from a surveillance camera saw Deramus and Stoudemire acting unusually and sent another guard to investigate.  Guards confiscated the package, and subsequent laboratory testing confirmed that the package contained methamphetamine.  Deramus later made false statements to an FBI Agent about the events of that day.   

Jennifer Deramus, 53, of Prattville, Alabama, was sentenced by U.S. District Judge Steven D. Grimberg to five years in prison, to be followed by four years of supervised release.  On November 15, 2021, she was convicted by a jury of conspiracy to possess with intent to distribute a controlled substance, possession with intent to distribute a controlled substance, attempting to provide a prohibited object to a federal inmate, and aiding and abetting a federal inmate’s attempt to obtain a prohibited item. 

Julius Stoudemire, 45, of Prattville, Alabama, was sentenced by Judge Grimberg to nine years and four months in prison, to be followed by three years of supervised release.  On November 5, 2021, Stoudemire pleaded guilty to one count of attempting to obtain a prohibited object as a federal inmate.  

This case was investigated by the Federal Bureau of Investigation.

Assistant U.S. Attorneys Tal C. Chaiken and Phyllis Clerk 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 – Darrell Thomas has been sentenced after pleading guilty to conspiracy to commit bank fraud and wire fraud and to money laundering for masterminding a scheme to obtain 14 fraudulent loans totaling approximately $11.1 million from the Paycheck Protection Program (“PPP”).  To date, a total of twenty-three individuals have been charged in connection with the fraudulent scheme. 

“Thomas took advantage of pandemic relief funds intended for struggling small businesses to line his own pockets,” said U.S. Attorney Ryan K Buchanan.  “Every dollar he took diverted funds from legitimate business owners suffering the effects of the COVID-19 pandemic who desperately needed assistance to pay their employees.  The sentence imposed today shows that fraud does not pay.” 

“Thomas orchestrated a massive fraudulent scheme to greedily line his pockets with stolen government funds that were intended to provide relief to small businesses and their employees during the COVID-19 Pandemic”, said Keri Farley, Special Agent in Charge of FBI Atlanta. “Hopefully, Thomas enjoyed his short-lived fun with all the luxury items purchased with stolen tax payer money, as he will now pay for his crimes with a lengthy prison sentence.”

“The charges and last week’s sentencing show IRS Criminal Investigation’s commitment to defend the integrity of the pandemic relief programs,” said IRS-Criminal Investigation Special Agent in Charge James E. Dorsey.  “We will continue to contribute our financial expertise to identify fraud, trace the funds, and bring the criminals to justice.”

“These results demonstrate the commitment of the Treasury Inspector General for Tax Administration to investigate and bring to justice those who attempt to corruptly interfere with Federal tax administration,” said J. Russell George, the Treasury Inspector General for Tax Administration.  “We appreciate the work of the U.S. Attorney's Office and our law enforcement partners to ensure this criminal activity is held to account.”

“OIG continues to bring to justice those persons who would seek to exploit federal programs for unlawful personal gain,” said SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite. “Our Office will remain relentless in the pursuit of fraudsters who seek to exploit SBA’s vital economic programs. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and commitment to seeing justice served.”

According to U.S. Attorney Buchanan, the second superseding indictment, and other information presented in court: From April 2020 through August 2020, Darrell Thomas orchestrated a PPP loan scheme involving at least fourteen fraudulent loans.  Each of the fourteen businesses obtained a PPP loan between $700,000 and $850,000, for a total of over $11.1 million.  The loan applications certified that each applicant business was in operation on February 15, 2020 and had employees for whom it paid salaries and payroll taxes or paid independent contractors; that the funds would be used to retain workers and maintain payroll or make mortgage interest payments, lease payments, and utility payments; and that the information provided in the application and in all supporting documents and forms was true and accurate in all material respects.

The PPP loan applications reported that each business had between 59 and 69 employees and approximately $295,000 to $342,000 in average monthly payroll expenses.  To support these payroll figures, each business’s loan application was accompanied by an Internal Revenue Service Form 941, which employers use to report payroll taxes, for each quarter of 2019 and by a bank statement or a spreadsheet reflecting payroll expenses.  In reality, however, none of the businesses had employees or payroll expenses.  The Form 941s, bank statements, and W2 payroll spreadsheets had all been fabricated.  Indeed, some of the supporting documents the businesses submitted were substantively identical, including identical Form 941s and identical bank statements.  

After the PPP loan proceeds were deposited into the businesses’ accounts, the businesses transferred more than $5.5 million of the PPP loan proceeds into accounts controlled by Darrell Thomas, purportedly for rental payments and payroll.  However, none of the businesses had any legitimate business with any of the businesses or accounts to which they sent the proceeds.  Based on the investigation, none of the companies allegedly engaged in any business-related transactions or used the PPP loan proceeds for any authorized purposes.  Instead, the businesses used the funds for various personal expenses.  In connection with the investigation, the United States seized more than $4 million in PPP loan proceeds, four luxury vehicles, and several jewelry items. 

Darrell Thomas, 36, of Johns Creek, Georgia, was sentenced by U.S. District Judge J. P. Boulee to fifteen years in prison, to be followed by five years of supervised release, and ordered to pay restitution in the amount of $13,206,752.10.  On June 16, 2021, he pleaded guilty to one count of conspiracy to commit bank fraud and wire fraud and one count of money laundering.  As part of his guilty plea, Thomas admitted his participation in fraudulent conduct totaling more than $14.7 million, including approximately $11.1 million in fraudulent PPP loans, more than $1.15 million in fraudulent Economic Injury Disaster Loans, and more than $2.4 million in fraudulent automobile loans. 

He also agreed to forfeit various assets, including more than $2.1 million in seized funds, three luxury vehicles – a 2018 Mercedes-Benz S-Class S65AMG, a 2018 Land Rover Range Rover, and a 2017 Acura NSX – and several items of jewelry, including a gold Rolex. 

To date, a total of twenty-three individuals have been charged in connection with the fraudulent scheme.  Eleven other individuals have pleaded guilty and six other individuals have been sentenced, while the remaining eleven individuals’ charges remain pending.     

The following defendants have either pleaded guilty based on their roles in the fraudulent scheme or have been sentenced to date:

• Charles Petty a/k/a Charles Knight, 49, of Stone Mountain, Georgia, pleaded guilty to one count of conspiracy to commit bank fraud and wire fraud in connection with the loan obtained by Transportation Management Services Inc.  On February 23, 2022, Judge Boulee sentenced Petty to three years and ten months’ imprisonment and five years of supervised release, and Judge Boulee ordered him to pay $830,417 in restitution and a special assessment of $100.
• Khalil Gibran Green, Sr., 47, of Cleveland, Ohio, pleaded guilty on September 1, 2020, to one count of conspiracy to commit bank fraud and wire fraud in connection with the loan obtained by his business, Impact Creations LLC.  On January 14, 2021, Judge Boulee sentenced Green to three years and five months’ imprisonment and five years of supervised release, and Judge Boulee ordered him to pay $830,000 in restitution, forfeiture of $157,035.71, and a special assessment of $100.
• Bern Benoit, 45, of Burbank, California, pleaded guilty on March 11, 2021, to one count of conspiracy to commit bank fraud and wire fraud in connection with the loan obtained by his business, Transportation Management Services Inc.  On September 8, 2021, Judge Boulee sentenced Benoit to two years and three months’ imprisonment and five years of supervised release, and Judge Boulee ordered him to pay $1,105,217 in restitution, forfeiture of $461,433.36, and a special assessment of $100.
• Charmaine Redding, 28, of Macomb, Michigan, pleaded guilty on July 14, 2021, to one count of conspiracy to commit wire fraud in connection with the loan obtained by her business, All Star Room and Board Services of Michigan Inc.  On October 21, 2021, Judge Boulee sentenced Redding to two years and three months’ imprisonment and three years of supervised release, and Judge Boulee ordered her to pay $1,159,138.31 in restitution and a special assessment of $100.
• Charles Hill IV, 46, of Norcross, Georgia, pleaded guilty on September 29, 2021, to one count of conspiracy to commit wire fraud in connection with the loan obtained by his business, Infinite Education Services Inc.  On January 12, 2022, Judge Boulee sentenced Hill to five years’ probation, with the first twenty-seven months to be served on home detention.  Judge Boulee ordered him to pay $1,004,805 in restitution and a special assessment of $100.
• Andre Lee Gaines, 67, of Dallas, Georgia, pleaded guilty on June 17, 2021, to one count of making false statements to the FBI in connection with the loan obtained by his business, Gaines Reservation and Travel.  On October 5, 2021, Judge Boulee sentenced Gaines to five years of probation and ordered him to pay restitution of $806,710 and a special assessment of $100.
• Denesseria Slaton, 53, of McDonough, Georgia, pleaded guilty on June 16, 2021, to one count of conspiracy to commit bank fraud wire fraud in connection with the loan obtained by Transportation Management Services Inc.  Slaton’s sentencing is set for June 21, 2022.
• Jesika Blakely, 34, of Atlanta, Georgia, pleaded guilty on March 15, 2022, to one count of conspiracy to commit money laundering in connection with her involvement in Thomas’s scheme.  Blakely’s sentencing is set for June 29, 2022.
• Amanda Christian, 34, of Blythewood, South Carolina, pleaded guilty on March 23, 2022, to one count of conspiracy to commit wire fraud in connection with the loan obtained by Mickies Auto and Tire LLC.  Christian’s sentencing is set for June 30, 2022.
• Derek Parker, 57, of Rochester Hills, Michigan, pleaded guilty on April 14, 2022, to one count of conspiracy to commit wire fraud in connection with the loan obtained by his business, D Parker Holdings Inc.  Parker’s sentencing is set for July 28, 2022.
• Rick McDuffie, 51, of Little Rock, South Carolina, pleaded guilty on April 27, 2022, to one count of conspiracy to commit wire fraud in connection with the loan obtained by his business, Mickies Auto and Tire LLC.  McDuffie’s sentencing is set for August 23, 2022.

This case is being investigated by the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigation, the U.S. Treasury Inspector General for Tax Administration, and the Small Business Administration-Office of the Inspector General.

Assistant U.S. Attorneys Tal Chaiken and Nathan Kitchens of the Northern District of Georgia and Trial Attorney Siji Moore of the Criminal Division’s Fraud Section are prosecuting the case.

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

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

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

GAINESVILLE, Ga. - Othon Marban, Sr., and Othon Marban, Jr., have pleaded guilty to conspiracy to transfer firearms to an out-of-state resident and making false statements to a federally licensed firearms dealer, in connection with their attempted trafficking of approximately 50 guns to Mexico.                                           

“The defendants’ thwarted attempt to traffic guns to Mexico highlights the determination of our office and our law enforcement partners to stop the illegal gun trade both within and outside our district,” said U.S. Attorney Ryan K. Buchanan. “I commend our federal, state and local law enforcement for remaining vigilant and protecting our communities.”

“Stopping the trafficking of illegal guns saves lives and reduces crime, I’m pleased that we were able to stop this scheme to illegally export guns to Mexico,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Cases like this highlight the great results that can be achieved when agencies work together to protect our communities here and abroad.”

“This case is a perfect example of how our agencies work in concert to keep our communities safe,” said Hall County Sheriff Gerald Couch. “I applaud our deputies for being alert as they were patrolling I-985, which is the busiest primary corridor in our county. They saw a problem with a basic traffic violation and pulled over the offender. As a result, we were able to get dozens of illegal weapons off our streets. I’m proud of everyone involved.”

According to U.S. Attorney Buchanan, the charges and other information presented in court: On the morning of December 3, 2021, Hall County Sheriff’s Office deputies stopped a truck travelling on I-985 South for traffic violations. Investigators recovered 51 guns wrapped in cellophane during a search of the vehicle. Marban, Sr. and Marban, Jr. admitted that they were en route to Mexico with the firearms. Further investigation of the defendants revealed that they previously purchased additional guns and that they traveled to Mexico earlier in 2021.

Othon Marban, Sr., 56, of Gainesville, Georgia, pleaded guilty on May 9, 2022, and Othon Marban, Jr., 20, also of Gainesville, Georgia, pleaded guilty on May 16, 2022.  Sentencing has not yet been scheduled.  

This case is being investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Hall County Sheriff’s Office.

Assistant U.S. Attorney Jennifer Keen is prosecuting 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 - Carl Delano Torjagbo, a/k/a Karl Lucius Delano, has been arrested on federal bank fraud and money laundering charges arising from a scheme to defraud a bank by obtaining a $9.5 million Paycheck Protection Program (“PPP”) loan in the name of a fictitious company and then allegedly using the loan proceeds to upgrade his personal lifestyle.  The PPP is a federal loan program intended to help small businesses survive the COVID-19 pandemic by providing them with funds to cover certain payroll costs, including benefits, interest on mortgages, rent, and utilities.

“This defendant allegedly stole millions of dollars in taxpayer money intended to help small businesses stay afloat during the pandemic,” said U.S. Attorney Ryan K. Buchanan. “We will continue to investigate and charge anyone who fraudulently obtains these critical funds and uses them for their own personal gain.”

“The FBI and our partners will not tolerate anyone who misdirects federal emergency assistance intended for business who actually need it to stay operational," said Keri Farley, Special Agent in Charge of FBI Atlanta. “Torjagbo’s fraud was particularly egregious, and we will make sure he is held accountable accordingly.”

“The Treasury Inspector General for Tax Administration aggressively pursues those who endeavor to defraud programs afforded to the American people under the CARES Act,” said J. Russell George, the Treasury Inspector General for Tax Administration (TIGTA). “We appreciate the efforts of the Department of Justice and our law enforcement partners in this effort.”

According to U.S. Attorney Buchanan, the charges, and other information presented in court:  On February 16, 2021, Torjagbo signed a PPP loan application on behalf of Kremkov Industries LLC and submitted it to a bank, requesting a PPP loan in the amount of $9,554,425.00. To be eligible for a PPP loan, a business had to have been in operation on February 15, 2020. Kremkov Industries was not eligible for a PPP loan because it was not in operation on February 15, 2020. In fact, it was not even created until approximately ten months after that deadline had expired.

Torjagbo swore that the information he provided in the PPP loan application and in all supporting documents and forms was “true and accurate in all material respects.” Torjagbo certified that Kremkov Industries was in operation on February 15, 2020. Torjagbo stated that Kremkov Industries had 493 employees. Torjagbo also stated that Kremkov Industries had an average monthly payroll of $3,821,770. All of these statements were allegedly false.

In support of the PPP loan application, Torjagbo allegedly submitted fraudulent documents to the bank, including false tax returns (IRS Forms 940, 941, and 1040) and fake reports that listed the names and make-believe payroll information of the 493 people who purportedly worked for Kremkov Industries.

On March 29, 2021, as a result of Torjagbo’s alleged false and fraudulent representations, the bank transferred $9,554,425.00 in PPP loan proceeds to Torjagbo’s custody and control. The PPP loan proceeds were initially deposited into a bank account titled in the name of Kremkov Industries. Immediately before that deposit, the balance in that account was only $105.

On the PPP loan application, Torjagbo certified that all loan proceeds would be used only for business-related purposes as specified in the loan application and consistent with the Paycheck Protection Program Rules. Torjagbo acknowledged that he could be prosecuted if the PPP loan proceeds were knowingly used for unauthorized purposes.

On April 8, 2021, Torjagbo caused $3 million of the PPP loan proceeds to be transferred by check from the bank to a different bank. On that check, Torjagbo wrote a note stating that it was for “payroll.” But those funds were not used to pay “payroll.” Instead, those funds were allegedly used to pay Torjagbo’s personal debts and expenses, including the following:

•         $1,677,861.01 for his personal residence;

•         more than $837,000 for tractor-trailers to start a new trucking business;

•         approximately $300,000 to purchase other real estate;

•         $118,299.79 for a 2022 BMW M850XL;

•         $87,020 for a 2021 Land Rover Velar; and

•         more than $15,000 for plastic surgery.

The PPP is a federal loan program intended to help small businesses survive the COVID-19 pandemic by providing them with funds to cover certain payroll costs, including benefits, interest on mortgages, rent, and utilities.

Carl Delano Torjagbo, a/k/a Karl Lucius Delano, 42, of Marietta, Georgia, was arraigned before U.S. Magistrate Judge Linda T. Walker, on federal charges of bank fraud and money laundering, and was remanded to custody.  Torjagbo was indicted by a federal grand jury on May 10, 2022. Members of the public are reminded that the indictment only contains charges.  The 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, U.S. Treasury Inspector General for Tax Administration, and Internal Revenue Service Criminal Investigation. In addition, the Federal Motor Carrier Safety Administration and the Paulding County Sheriff’s Office provided valuable assistance in the investigation.

Assistant U.S. Attorney Russell Phillips is prosecuting the case.

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

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

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

ATLANTA - Nathan Horton has been sentenced for illegally trapping and exporting thousands of freshwater turtles in Georgia in violation of the Lacey Act.

“Horton robbed public lands by using illegal traps that can cause significant harm to aquatic animals and birds,” said U.S. Attorney Ryan K. Buchanan. “This tough but fair sentence should be a warning to anyone who would consider violating our nation’s wildlife protection statutes.”

“Wildlife trafficking negatively impacts our native natural resources and could possibly lead to a species’ extinction,” said the U.S. Fish and Wildlife’s Office of Law Enforcement Assistant Director Edward Grace. “Our agents worked closely with Georgia’s Department of Natural Resources and the U.S. Attorney’s Office to ensure this trafficker faced prosecution for his serious crime. This work is important so future generations of Americans may enjoy our nation’s wildlife treasures.”

“Our Law Enforcement Division is tasked with protecting Georgia’s wildlife population, and they certainly did that in this case. I am proud of the hard work and long hours our investigators, working alongside our partners at U.S. Fish and Wildlife Service, invested in bringing this criminal to justice.” Commissioner Mark Williams. Georgia Department of Natural Resources.

According to U.S. Attorney Buchanan, the charges and other information presented in court: The Lacey Act regulates the trafficking and labeling of wildlife, fish, and plants and makes it unlawful for individuals to, among other things, knowingly export and sell wildlife that has been illegally taken in violation of state law. In Georgia, the Department of Natural Resources (“GA-DNR”) regulates the collecting, trapping, exporting, trading, and selling of freshwater turtles from land belonging to the State of Georgia. Like it does with other wildlife, GA-DNR regulates both the number of freshwater turtles that may be collected and the manner in which they may be trapped.

From at least July 2015 and continuing until at least October 2017, Horton shipped thousands of freshwater turtles from Georgia to California that had been trapped using turtle nets that were illegal under Georgia law.  The turtles trapped by Horton were ultimately destined for Asia, where they could be sold for substantial profits. Through his illegal trapping activities, Horton earned more than $150,000. Unlike other animals that are hunted or trapped, such as deer, rabbits, and squirrels, freshwater turtles tend to have longer life spans and produce few offspring that survive to adulthood. Due to these biological characteristics, overharvesting of turtles can cause substantial, lasting damage to overall turtle populations.

Nathan Horton, 37, of Orangeburg, S.C., has been sentenced to one year and a day in prison to be followed by three years of supervised release, and ordered to pay a fine in the amount of $10,000. Horton was also ordered to complete 200 hours of community service and he was banned from trapping turtles and other wildlife for the entirety of his term of supervised release. Horton was convicted on these charges on December 8, 2021, after he pleaded guilty.

This case was investigated by the U.S. Fish and Wildlife Service Office of Law Enforcement, Georgia Department of Natural Resources, South Carolina Department of Natural Resources, and California Department of Fish and Wildlife.

Assistant U.S. Attorneys Alex Sistla and Samir Kaushal 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 – Ryan K. Buchanan has been sworn in as the U.S. Attorney for the Northern District of Georgia. U.S. District Judge Thomas W. Thrash, Jr., administered the oath of office in a private ceremony.  President Joseph R. Biden, Jr., nominated Buchanan to be the U.S. Attorney on November 15, 2021. The U.S. Senate confirmed his nomination on April 27, 2022.   

“I am honored to serve as U.S. Attorney for the Northern District of Georgia,” said U.S. Attorney Buchanan. “I am grateful to President Biden for the opportunity to lead a dynamic and talented team of public servants who are dedicated to the pursuit of justice and ensuring the safety of our community. I am also thankful for the recommendation and support of Senator Ossoff and Senator Warnock during the confirmation process. This office has a long tradition of working closely with our law enforcement and community partners, the defense bar, and the court in serving this district. I look forward to maintaining and strengthening those relationships.”

As the chief federal law enforcement official in the Northern District of Georgia, U.S. Attorney Buchanan oversees the investigation and litigation of all criminal and civil cases brought in the district on behalf of the United States.  He leads a team of approximately 250 prosecutors and staff in its mission to enforce federal criminal law, advocate for the victims of crimes, and represent the United States’ interests in federal court.

U.S. Attorney Buchanan joined the Department of Justice in 2010 as an Assistant U.S. Attorney in the Northern District of Alabama.  He has served as an Assistant U.S. Attorney in the Northern District of Georgia since 2013 and has held the positions of National Security and Anti-Terrorism Council Coordinator and Deputy Chief of the Violent Crime and National Security Section.

During his career, U.S. Attorney Buchanan successfully prosecuted cases involving foreign terrorist organizations and attempts by domestic terrorists to acquire weapons of mass destruction. He has also handled cases involving organized crime and racketeering, robbery, kidnapping, carjacking, exploitation of children, and other violent crimes.

Prior to joining the Department of Justice, U.S. Attorney Buchanan worked in private practice at McGuireWoods LLP. He also served as a law clerk to the Honorable Inge P. Johnson of the U.S. District Court for the Northern District of Alabama. Buchanan received his J.D. from Vanderbilt University Law School in 2005 and his B.S. from Samford University in 2001.

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 - Ivie Shevon Sajere has been sentenced for her role in a conspiracy that defrauded the Social Security Administration (“SSA”) and the Federal Emergency Management Agency (“FEMA”) out of nearly $1,000,000.  The conspiracy involved the false filing of thousands of online applications for SSA retirement benefits and FEMA disaster benefits using stolen personal information. 

“This was a massive fraud that impacted two government agencies and harmed thousands of victims across the country whose identities were stolen,” said U.S. Attorney Kurt R. Erskine.  “Sajere’s prison sentence is the culmination of a complicated investigation and prosecution and serves as a cautionary tale to other fraudsters similarly minded.”

“This sentence holds Sajere accountable for her role in this complex conspiracy to defraud the Social Security Administration, alone, of nearly seven hundred thousand dollars. She stole personal information of innocent people and used it to defraud the SSA by abusing its online services,” said Gail S. Ennis, Inspector General, for the Social Security Administration.  “My office will continue to uphold the integrity of the SSA’s online services and programs that so many Americans rely on. I thank the United States Postal Inspection Service, the Department of Homeland Security Office of the Inspector General, and Homeland Security Investigations, and other law enforcement agencies for joining us in this comprehensive investigation. I also thank the U.S. Attorney’s Office for prosecuting this case.”

“Anyone with malicious intent can cause widespread damage to victims, and in this case, the defendant orchestrated an identity theft spree that resulted in the defrauding of two agencies that provide substantial assistance to individuals in need,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division, the U.S. Postal Inspection Service. “This scheme highlights the importance of national collaboration when it comes to combatting identity theft, and I thank our law enforcement partners for their essential assistance with this investigation.”

According to U.S. Attorney Erskine, the charges and other information presented in court:  Beginning in approximately June 2017 until September 2018, the defendant and her husband, Neville Sajere, both Nigerian nationals who engaged in marriage fraud in an unsuccessful attempt to become U.S. citizens, participated in a money laundering scheme that defrauded nearly a million dollars from SSA and FEMA.

The scheme involved unknown fraudsters filing applications for Social Security retirement benefits and FEMA disaster relief benefits using stolen personal information.  The individual victims whose personal information was stolen were often individuals highly acclaimed in their fields.  It appears that these individuals were targeted because, even though they were of retirement age, they had not filed for SSA retirement benefits and did not need disaster benefit relief.  Thus, the fraudsters had a better chance of getting the applications approved.  The victims included a movie director, an award-winning journalist, the daughter of a legendary movie director, and a highly esteemed academic.

Once an application was approved, the fraudsters directed that the funds be deposited onto a Green Dot debit card opened using other stolen personal information.  As soon as the money hit the Green Dot debit card, the defendant generated payments through Square, Stripe, and PayPal to Nevada Bridge TV, a Nigerian streaming service/television production company owned by the defendant’s husband; BAGMA, an African gospel award show business owned by the defendant’s husband; and Shevonz, a clothing store owned by the defendant.

Ivie Shevon Sajere (a/k/a Ivie Shevon Owubo), 38, Suwanee, Georgia, was sentenced by U.S. District Judge Timothy C. Batten, Sr., to two years, six months in prison.  She was also ordered to pay $949,616.40 in restitution to SSA and FEMA. Sajere was remanded into custody at the close of the sentencing hearing to begin her sentence. Because Sajere is not a United States citizen, she is likely to be deported after she completes her sentence.  Sajere pleaded guilty on November 30, 2021, to one count of conspiracy to commit money laundering.

This case was investigated by the Social Security Administration – Office of Inspector General, Department of Homeland Security – Office of Inspector General, and the U.S. Postal Inspection Service.

Diane C. Schulman, Special Assistant U.S. Attorney, and Assistant U.S. Attorney Samir Kaushal 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 – April and James Thompson have each been sentenced for mail fraud after stealing over $4 million from Forest Investment Associates (“FIA”), an Atlanta-based company that provides timberland investment advisory and management services for institutional timberland investors. 

“The defendants were able to engage in this fraud for so long only because the victim trusted them,” said U.S. Attorney Kurt R. Erskine. “We will aggressively prosecute those who exploit their insider knowledge and the trust of others to steal.”

“The negative impact of white-collar fraud is far-reaching, and the FBI constantly works to hold fraudsters accountable and protect businesses from further damages,” said Philip Wislar, Acting Special Agent in Charge of FBI Atlanta. “The Thompsons chose self-interest and greed rather than to make an honest living, and for that they will spend significant time in prison.”

According to U.S. Attorney Erskine, the charges, and other information presented in court: April Thompson worked in Texas for Kingwood Forestry Services (“Kingwood”), which is a natural resource consulting firm that provides a variety of forestry services to landowners. FIA contracted with Kingwood to retain contractors to provide field services on behalf of FIA’s clients, such as clearing land, road grading, or other services, subject to an agreed upon annual budget. After the work was completed, Kingwood would send invoices to FIA for the work performed by the contractors. FIA, in turn, paid the invoices directly to the contractors. At Kingwood, April Thompson was responsible for managing the submission of invoices to and requesting payment from FIA.

Between approximately May 2011 and April 2019, April Thompson submitted over 400 fraudulent invoices totaling more than $4 million to FIA for work that her husband, James Thompson, had allegedly performed at FIA timber properties. Not one of these invoices was true. James Thompson never worked as contractor for FIA or Kingwood and had never performed work on any FIA timber property. After April Thompson submitted the invoices, FIA mailed checks to the Thompsons in Texas, which they deposited into bank accounts they jointly controlled. The Thompsons used the stolen money for their own personal benefit, including to operate James Thompson’s trucking businesses, support his race car hobby, purchase silver and gold coins, install a pool at their home, and even treat themselves and friends to a Hawaiian vacation.

In addition to the criminal charges against the Thompsons, FIA had separately filed a civil suit against them in the U.S. District Court for the Eastern District of Texas (“Texas court”). As part of the civil litigation, the Texas court appointed a Receiver to manage and control the Thompsons’ finances, which included granting him full access and control over their bank accounts, as well as the authority to take custody, control, and possession of their property, and authority to determine their reasonable and necessary living expenses. The Texas court also required that the Thompsons respond promptly and truthfully to all requests for information and documents from the Receiver.

The Texas court twice found the Thompsons in contempt for violating its orders, including after they had both pleaded guilty in Georgia. The Texas court found that that they had willfully disregarded its orders related to the preservation of assets by withholding, concealing, or otherwise failing to provide truthful information to the Receiver. The Thompsons likewise failed to make complete financial disclosures to the U.S. Probation Office in advance of their sentencings, including hiding the existence of a bank account in which they were receiving their salaries and failing to account for how thousands of dollars of cash had been spent in the months leading up to their sentencings.

April Thompson, 44, and James Thompson, 49, both of Maud, Texas, were each sentenced by U.S. District Judge Eleanor L. Ross to six years and eight months in prison, to be followed by three years of supervised release, and ordered to pay restitution in the amount of $5,143,209. They were originally charged by a federal grand jury in September 2019 with conspiracy to commit mail fraud and multiple counts of mail fraud. On December 1, 2021, April Thompson pleaded guilty to eleven counts of mail fraud. James Thompson pleaded guilty to one count of mail fraud on January 13, 2022.

This case was investigated by the Federal Bureau of Investigation.

Assistant U.S. Attorneys Tal C. Chaiken, Alex R. Sistla, and Thomas J. Krepp 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 - Rowlando Hatter Jr., and Clyde Anthony Parker Jr., have been arraigned on federal charges of conspiracy to commit mail and wire fraud, mail fraud, and aggravated identity theft.  They allegedly participated in a scheme to use stolen identities to fraudulently apply for Unemployment Insurance (“UI”) Benefits in multiple states during the COVID-19 pandemic.

“The defendants allegedly regarded these benefits as means to steal money at a time when many legitimately relied on Unemployment Insurance Benefits during the COVID-19 pandemic,” said U.S. Attorney Kurt R. Erskine.  “This type of fraud diverts CARES Act funds away from those it is intended for – those who need the money to make ends meet each month.”

“An important mission of the Office of Inspector General is to investigate allegations of fraud related to the unemployment insurance program. 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.

“This case is another example of criminals trying to take advantage of a bad situation for their benefit. Hatter and Parker’s alleged scheme took desperately needed money 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 steals money, legitimate applicants are unable to get those funds to help themselves and their families.”

“The alleged actions of the defendants to defraud a government program designed to provide financial assistance is criminally reprehensible,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division. “Postal Inspectors and our law enforcement partners will aggressively go after bad actors who utilized the COVID-19 pandemic as an opportunity to commit fraud for their own financial gain.”

According to U.S. Attorney Erskine, the charges, and other information presented in court: The U.S. Department of Labor, Employment and Training Administration oversees the Federal-State Unemployment Insurance Program, which provides unemployment benefits to eligible workers who are unemployed through no fault of their own as determined under state law and who meet other state eligibility requirements. On March 27, 2020, the President signed into law the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act was designed to mitigate the economic effects of the COVID-19 pandemic in a variety of ways. One of the provisions provided for temporary benefits for individuals who exhausted their entitlement to regular UI payments, as well as coverage for individuals who were not eligible for regular UI payments and were self-employed or had limited recent work history.

Between about July 1, 2020, and continuing through October 5, 2020, Hatter, 31, of Smyrna, Georgia, and Parker, 31, of Oak Park, Michigan, caused fraudulent applications for UI benefits to be submitted electronically to workforce agencies in various states, including California, Georgia, and Michigan. The applications fraudulently listed the names, Social Security numbers, and other personal identifying information of individuals without their knowledge and consent.

After claims were approved, the state workforce agencies paid the benefits by depositing the funds onto debit cards issued through the approving state workforce agency. The debit cards were mailed to residential addresses and P.O. Boxes located at addresses in Smyrna, Georgia and in Michigan that were controlled by Hatter and Parker. After receiving the debit cards, both Hatter and Parker withdrew the UI funds, in part, through ATM cash withdrawals.

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 defendant’s guilt beyond a reasonable doubt at trial.

This case is being investigated by the U.S. Department of Labor – Office of Inspector General, U.S. Homeland Security Investigations, and U.S. Postal Inspection Service. Special assistance was provided by the Federal Bureau of Investigation – Sacramento, California.

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

This case was sponsored by 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 Benefits Fraud.

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 – Paul D. Weir, John R. Morgan, M.D. and the company they created, Care Plus Management, LLC (“Care Plus”), along with 18 anesthesia entities that Care Plus owned and operated, agreed to pay $7.2 million to resolve allegations that they entered into kickback arrangements with referring physicians in exchange for the referral of the physicians’ patients for anesthesia services.  Specifically, Weir and Morgan, through Care Plus, shared the revenue received for anesthesia services with the referring physicians, and provided subsidies for drugs, supplies and equipment to the referring physicians’ outpatient surgical centers.

“A physician’s selection of an anesthesia provider for the patients he or she treats should be motivated by the quality of the anesthesia provider rather than by the income the physician can generate for him or herself,” said U.S. Attorney Kurt R. Erskine. “By offering remuneration to physicians, an anesthesia provider improperly affects the physician’s decision-making process for selecting an anesthesia provider for his or her patients.”

“Health care providers using kickbacks to boost their profits threaten the impartiality of medical decision-making, the financial integrity of Medicaid, and the public’s trust in the health care system,” said Special Agent in Charge Tamala E. Miles, U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG).  “Our agency will continue to work with our law enforcement partners to uproot such fraud schemes and hold those responsible accountable.”

“Kickback schemes can undermine our healthcare system, compromise medical decisions, and waste taxpayer dollars,” said Phil Wislar, Acting Special Agent in Charge of FBI Atlanta. “The FBI will continue to work with our law enforcement partners to ensure that all medical providers properly follow health care rules and regulations.”

“Medical professionals who enter into arrangements solely to enhance their own profits undermine the public’s faith in our healthcare system,” said Georgia Attorney General Chris Carr. “By joining forces with our federal partners and those who bring these issues to our attention, our Medicaid Fraud Division is working vigorously to ensure that the integrity of our Medicaid program is not comprised in any way. On behalf of the people of Georgia, we remain vigilant in our efforts to uncover fraud or abuse in our publicly-funded healthcare programs and will continue fighting to protect taxpayer dollars.”

Anesthesia providers typically depend on hospitals and outpatient surgery centers for their income.  If an anesthesia provider can secure an exclusive contract for anesthesia services with a center, it is guaranteed a steady stream of patient referrals during the term of the contract.  As a result, anesthesia providers compete aggressively for these contracts.

The Government alleges that between 2012 and 2016, Weir and Morgan, through Care Plus, induced the physician owners of outpatient surgery centers to award these exclusive services agreements to them by offering them a partial ownership in the anesthesia entities that Care Plus had created to service their surgery centers.  Under this arrangement, the physician owners received compensation in the form of a portion of the revenue from the anesthesia services.  

The Government further alleges that during this same period, Weir, Morgan, Care Plus and its anesthesia companies subsidized the cost incurred by surgery centers for drugs, supplies and equipment in order to induce the physician owners of those centers to grant exclusive anesthesia services agreements to Care Plus’s anesthesia companies.  HHS-OIG has longstanding concerns about the provision of free or below-fair-market-value goods or services to an existing or potential referral source.  Indeed, free or below-fair-market-value goods or services may be used as a vehicle to disguise or confer an unlawful payment for referrals of Federal health care program business.

The Government alleges that these arrangements violated the Anti-Kickback Statute, 42 U.S.C. § 1320a-7b(b), and caused the submission of false claims in violation of the False Claims Act, 31 U.S.C. § 3729, et seq.

This settlement resolves a lawsuit originally filed in the U.S. District Court for the Northern District of Georgia by Robert Douglas (the Relator) under the qui tam or whistleblower provisions of the False Claims Act.  United States ex rel. Douglas, et al. v. Care Plus Management, LLC, et al., No. 1:16-cv-4439-WMR.  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 Relator has received over $1.3 million from the settlement.

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 U.S. Department of Health and Human Services Office of Inspector General and the Georgia Attorney General's Office Medicaid Fraud Control Unit.

The civil settlement was reached by Assistant U.S. Attorneys Neeli Ben-David and Mellori Lumpkin-Dawson, and Georgia Senior Assistant Attorney General Jim Mooney. 

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

ATLANTA – Antonio McCrary has been sentenced for a carjacking at a Chamblee, Georgia residence and an unrelated string of firearm thefts in Newnan, Georgia.   Additionally, Cortez Butler, who admitted to committing the carjacking with Butler, was sentenced in September 2020.

“These two men brazenly stole a car from a family’s driveway and fired a gun towards the victim as they sped away,” said U.S. Attorney Kurt R. Erskine.  “Later, McCrary boldly continued his criminal behavior by breaking into a dozen cars and stealing multiple firearms before leading law enforcement on a dangerous high-speed chase on an interstate. Thankfully no lives were lost during McCrary’s or Butler’s crimes as a result of the coordinated efforts of federal and local law enforcement.” 

“The sentencing of McCrary and Cortez to substantial prison time illustrates the FBI’s commitment to working with its law enforcement partners to protect our citizens against such violent offenders,” said Acting Special Agent in Charge of FBI Atlanta, Philip Wislar. “This sentencing sends a message to those contemplating such brazen and selfish criminal acts that they will be aggressively investigated and prosecuted to the full extent of the law. The public is now safer with McCrary and Cortez behind bars.”

“The Treasury Inspector General for Tax Administration is committed to investigating crimes committed against Internal Revenue Service employees,” said J. Russell George, the Treasury Inspector General for Tax Administration.  “We appreciate the efforts of the U.S. Attorney’s Office and the other law enforcement agencies involved for their partnership and investigative efforts.”

“We appreciate the collaborative efforts by all agencies in resolving this case and bringing closure to the victims and others involved during this investigation,” said Chief Brent Blankenship, Newnan Police Department.

According to U.S. Attorney Erskine, the charges and other information presented in court: In March 2018, the victim was in the kitchen of his home in Chamblee when he heard his family’s car unlock in the garage and saw the car’s lights come on.  The victim looked into the garage and saw a man getting into the car, and then ran outside as someone backed the car out of the garage. The victim jumped on the hood of the car but fell off when he heard a gunshot. 

Shortly after the carjacking, video footage near a house in Decatur, Georgia showed Butler and McCrary arriving and exiting the stolen car.  Butler and McCrary later confessed to the carjacking.  Four days later, the stolen car was recovered from a third party during a traffic stop in Atlanta.

In January 2020, McCrary and another man drove around Newnan, Georgia in a different stolen vehicle.  They broke into more than a dozen cars during a three-hour crime spree, and stole cash, electronics, and four firearms.  Several of the break-ins were caught on surveillance cameras, allowing Newnan Police to place a “be on the lookout” or “BOLO” for the stolen car. 

That afternoon, a Coweta County Sheriff’s Deputy spotted the car and attempted a traffic stop.  McCrary, who was driving, led officers on a high-speed chase driving over 130 miles per hour on I-85 and recklessly cut in and out of traffic.  McCrary eventually exited the highway, ran multiple red lights and stop signs, and caused another car to run off the road and hit a tree.  The chase finally ended when McCrary lost control of the car, ran off the road, and landed sideways in a ditch.  McCrary and his accomplice were taken to the hospital, and once cleared, booked on state charges. Newnan Police recovered all of the items stolen earlier that day, including the four firearms.  Officers recovered five additional guns, most of which were also recently reported stolen. 

McCrary was charged in a federal indictment with the March 2018 carjacking, discharging a firearm during the carjacking, the January 2020 theft of firearms, and possession of a firearm by a convicted felon. McCrary had previously pled guilty in a state case to a home burglary in Cumming, Georgia, during which he and others stole jewelry, electronics, and a luxury automobile.  

Antonio McCrary, 24, of Decatur, Georgia, was sentenced by U.S. District Judge Steven D. Grimberg to 13 years, six months of imprisonment, to be followed by three years of supervised release.  McCrary pleaded guilty to the federal crimes of theft of firearms and possession of a firearm as a convicted felon.  The court also considered the Chamblee carjacking in imposing the sentence.

Cortez Butler, 23, of Decatur, Georgia, was sentenced on September 9, 2020 to ten years in federal prison, to be followed by three years of supervised release.  He pled guilty to the federal offense of discharging a firearm during the March 2018 carjacking. 

Assistant U.S. Attorneys Annalise K. Peters and Matthew Carrico prosecuted the case.

This case was investigated by the U.S. Treasury Inspector General for Tax Administration, the Federal Bureau of Investigation, the Chamblee Police Department, and the Newnan Police Department.

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 - Scott Russell Granden has been sentenced to federal prison for groping and inappropriately touching a female passenger seated next to him on a flight to Atlanta.

“Passengers have the right to fly in peace and to expect that their personal dignity will be respected,” said U.S. Attorney Kurt R. Erskine. “When this defendant started groping and sexually harassing the female passenger in the next seat, he humiliated and degraded her. We will not tolerate this type of behavior on an airplane, and this sentence shows the consequences for such abusive sexual conduct.”

“Reports of sexual assaults on aircraft are increasing and we want the public to know that these assaults are federal crimes with severe consequences”, said Philip Wislar, Acting Special Agent in Charge of FBI Atlanta.  “The FBI will continue to work with our partners to investigate and prosecute these crimes to keep the skies safe for everyone.”

“The Atlanta Police Department takes the safety of aircraft passengers, seriously,” said Atlanta Police Chief Rodney Bryant. “We continuously work closely with our local and federal law enforcement partners to ensure that airport customers and airline passengers feel safe when traveling to and from our great city.”

According to U.S. Attorney Erskine, the charges and other information presented in court: On March 25, 2021, Granden boarded a flight traveling from St. Louis, Missouri, to Atlanta. He sat in a middle seat beside the victim, R.A.K, an emergency room nurse. R.A.K. was exhausted from a hectic day and, shortly after takeoff, tried to rest. She awoke to discover that Granden’s hand was on her thigh. She removed his hand and went back to sleep. But she woke up moments later because Granden had again placed his hand on her thigh, moved his hand towards her groin area, and, at one point, tried to kiss her. R.A.K. warned Granden to stop touching her. But he slapped R.A.K. on the buttocks when she stood up to let him pass her to go to the restroom.

A flight attendant responded to R.A.K.’s complaint about these incidents and moved Granden to a different seat. The airline company notified the Atlanta Police Department (APD) about the assault and arrested Granden when the plane arrived in Atlanta.  APD officers obtained statements from R.A.K. and another passenger on the flight. Granden called the officers a series of racist and homophobic slurs during this time.

Scott Russell Granden, 36, of St. Louis, Missouri, has been sentenced to one year and nine months in prison to be followed by one year of supervised release.  He must also register as a sex offender.  Granden was convicted of the offense of abusive sexual contact aboard an aircraft on September 24, 2021, after he pleaded guilty.

This case was investigated by the Federal Bureau of Investigation and the Atlanta Police Department.

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

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

ATLANTA – OGCC Behavioral Health Services, Inc. (“OGCC”) and its owner and Executive Director, Dionne Huffman, have agreed to pay $750,000 to resolve allegations that they violated the False Claims Act by, among other things, billing the government for services that they did not provide or were not provided in the way that OGCC said that they were.

“Medicaid beneficiaries have the right to receive quality care,” said U.S. Attorney Kurt Erskine.  “We will continue to prioritize cases where the provider’s actions shortchange some of the most vulnerable members of our community.”

“This settlement will serve to hold OGCC and Huffman accountable for stealing from Medicaid and the taxpayers of Georgia,” said Acting Special Agent in Charge Philip Wislar. “These funds were intended to support citizens with mental health needs but were instead diverted to greedy fraudsters.  The FBI encourages brave whistleblowers like Ms. Hawkins to continue to come forward to report such crimes to law enforcement.”

“It's disturbing when health care providers accept Medicare and Medicaid money meant to pay for the care of vulnerable patients, when in reality the providers either provided no services at all or otherwise misrepresented their services in order to steal from federal health care programs,” said Special Agent in Charge Tamala E. Miles of the U.S. Department of Health and Human Services Office of Inspector General.   “We will continue to hold dishonest health care providers accountable in order to ensure patients receive quality care and that taxpayer-funded programs are billed appropriately.”

“Georgians deserve to receive behavioral health services from qualified individuals, just as our programs were designed to provide. Through our Medicaid Fraud Division, we remain vigilant in our efforts to protect taxpayer dollars and to ensure they are used to serve the best interests of our vulnerable populations. Providers who choose to abuse or exploit our programs will be held accountable for their actions,” said Georgia Attorney General Chris Carr.

OGCC is a CORE Services Provider for the Georgia Department of Behavioral Health and Developmental Disabilities.  CORE providers are supposed to offer services to individuals who are experiencing emotional and behavioral difficulties, mental health problems, or addiction.  The government alleges that, between 2014 and 2016, OGCC falsified the identity and qualifications of the health care providers to receive reimbursement at a higher rate, inflated the amount of time spent with patients, submitted claims for patient visits that never occurred, misrepresented dates of service, and fabricated documents in response to government scrutiny.

The settlement resolves allegations in a lawsuit filed by Latashia Hawkins, a former OGCC employee, under the qui tam, or whistleblower, provisions of the False Claims Act, which authorizes private parties to sue for false claims on behalf of the United States and share in the recovery.  The lawsuit was filed in the Northern District of Georgia and is captioned United States and State of Georgia ex rel. Hawkins v. OGCC Behavioral Health Services, Inc., No. 1:15-cv-4380.

The U.S. Attorney’s Office for the Northern District of Georgia, the FBI, the U.S. Department of Health & Human Services Office of Inspector General, and the Georgia State Attorney General’s Medicaid Fraud Division investigated this case.

The civil settlement was reached by Assistant U.S. Attorney Austin Hall and Georgia State Assistant Attorney General Sara Vann.

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 – Travis Peterson has been sentenced for mail fraud while operating a fraudulent charity scheme. For nearly six years, he used millions of robocalls to urge people—often targeting senior citizens—to donate vehicles and other valuable items by falsely claiming their donations would go to veterans’ charities and were tax-deductible. In reality, veterans received nothing, and Peterson pocketed more than $500,000.

“Peterson shamelessly defrauded thousands of people while supposedly helping veterans,” said U.S. Attorney Kurt R. Erskine. “Fraudsters rely on the goodwill of unsuspecting citizens to perpetrate their schemes.  With our law enforcement partners, we will track them down and bring them to justice.”

“This defendant preyed on older citizens who were trusting and unknowingly fell for a scam that was for his financial benefit,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division.  “Postal Inspectors will continue to work with our law enforcement partners in our relentless pursuit to combat elder financial exploitation and tracking down unscrupulous schemers to bring them to justice.”

“Peterson deserves his time in federal prison for lining his pockets with money that he told donors would benefit our veterans,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection.  “Charity scams and illegal robocalls are a toxic mix that we’ll continue to target with the help of our law enforcement partners.”

According to U.S. Attorney Erskine, the charges and other information presented in court: Between approximately April 2012 and July 2018, Travis Peterson registered nearly a dozen corporate entities in Nevada, Michigan, and Utah. Each of these companies was purportedly a tax-exempt charitable organization that Peterson established to help veterans and their families. None of these companies, however, was an actual charity with tax exempt status. Peterson in fact never owned or operated a single charity that benefitted veterans.

Using millions of robocalls, as well as multiple websites and newspaper advertisements, Peterson defrauded thousands of people around the country into believing they were donating vehicles and other property to benefit veterans. Peterson and those working at his direction falsely informed would-be donors that their donations would be used to benefit veterans and were tax deductible. In order to execute his fraud, Peterson contracted with third-party auto auction companies to handle the logistics of acquiring and selling the donated vehicles. After the vehicles were sold, the auction companies would remit any proceeds to bank accounts controlled by Peterson. None of these funds went to the benefit of veterans. Peterson instead used them for own personal expenses, including to pay for online dating services and to purchase an all-terrain vehicle. As a result, Peterson defrauded donors of more than $500,000.

The FTC had previously filed a complaint against Peterson in the U.S. District Court for the District of Utah arising from this same fraudulent scheme. On April 1, 2019, the court entered a stipulated order and judgment which permanently banned Peterson from soliciting charitable contributions and from using robocalls, as well as prohibiting him from making misrepresentations that a charitable contribution is tax-deductible. The order also imposed a $541,032.10 monetary judgment against Peterson and required that he forfeit 88 vehicles.  The FTC’s investigation of Peterson is part of a broader initiative by the agency to combat illegal robocalls.

More information about several of the FTC’s recent enforcement actions, including Peterson’s, is available online: https://www.ftc.gov/news-events/press-releases/2019/03/ftc-crackdown-stops-operations-responsible-billions-illegal.

Travis Peterson, 54, of West Ephraim, Utah, was sentenced by U.S. District Judge Eleanor L. Ross to three years and five months in prison, to be followed by five years of supervised release, and ordered to pay restitution in the amount of $541,032.10. He was originally charged by a federal grand jury in December 2020 with multiple counts of mail and wire fraud. On November 4, 2021, he pleaded guilty to one count of mail fraud.

This case was investigated by the U.S. Postal Inspection Service. The Atlanta  and Cleveland Regional Offices of the Federal Trade Commission provided invaluable contributions in this case.

Assistant U.S. Attorney Alex R. Sistla prosecuted the case.

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

GAINESVILLE, Ga. - Brandon Mason has been sentenced to 15 years in federal prison for possessing a firearm as an armed career criminal.

“The Armed Career Criminal statute was written for defendants like Mason whose drug trafficking and violence pose a significant risk to public safety,” said U.S. Attorney Kurt R. Erskine. “Our partnerships with federal, state, and local law enforcement officers, and community stakeholders, are helping to achieve meaningful reductions in violent crime in these communities.”

“Targeting trigger pullers is a key component to ATF’s mission to take violent offenders off the street” said ATF Assistant Special Agent in Charge Alicia Jones. “The fact that Mason is an armed career criminal will guarantee he is off the streets for many years to come.”

“The Commerce Police Department was honored to work with the U.S. Attorney’s Office in an effort to hold Brandon Mason accountable for his actions.  Brandon Mason has routinely reoffended upon returning to our community.  The opportunity to prosecute this case through Project Safe Neighborhoods will aid us in our efforts to keep Commerce a safe community to thrive in.  Mason has demonstrated time and again a propensity to commit violent acts that create an unsafe negative environment in the neighborhood he grew up in.  The sentence imposed should stand as both accountability for Brandon Mason as well as a deterrent to others that would consider the commission of violent acts intended to disrupt the safety, tranquility, and quality of life in the City of Commerce,” said Kenneth Harmon Jr., Chief of Police, City of Commerce.

According to U.S. Attorney Erskine, the charges and other information presented in court: On October 6, 2019, the Commerce, Georgia, Police Department responded to a 911 call of shots fired. The victim identified Brandon Mason as the shooter, and a crime scene expert determined that bullets had pierced the back windshield of the victim’s car, pierced the driver’s headrest, and exited through the front windshield of the vehicle. Officers also found .40 caliber shell casings at the scene. Investigators apprehended Mason approximately one hour after the shooting in possession of a .40 caliber pistol.

Brandon Mason, 34, of Commerce, Georgia, was sentenced by U.S. District Judge Richard W. Story to 15 years in prison to be followed by four years of supervised release.  Mason pleaded guilty to felon in possession of a firearm on December 21, 2020, in connection with this shooting.

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

Assistant U.S. Attorney Jennifer Keen 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 - DeAngelo Copeland has been sentenced for selling heroin and admitting that his act of distribution resulted in the overdose death of a college student in April 2018.

“Copeland’s heroin distribution led to yet another drug overdose death in our community,” said U.S. Attorney Kurt R. Erskine. “Opioid overdoses will be investigated and prosecuted as a federal priority and those who sell this poison will be held accountable for the death and suffering that it causes.”

“HIDTA’s commingled drug task forces are committed to the disruption and dismantlement of organizations determined to make a profit on the backs of addiction.  This loss of life and the more than 100,000 that died in 2021 from a drug overdose, fuels our drive to make our communities safer.  This successful investigation by Agents, Task Force Officers and the US Attorney’s office is the result of cooperative law enforcement,” said Dan R. Salter, Executive Director, Atlanta-Carolinas HIDTA.

“The sentencing of Copeland proves that the justice system is committed to holding drug traffickers accountable for their crimes,” said Atlanta Police Chief Rodney Bryant. “Additionally, the sentencing sends a message to drug traffickers that the illegal sale of drugs will not be tolerated in Atlanta.”

According to U.S. Attorney Erskine, the charges and other information presented in court: On April 10, 2018, officers with the Atlanta Police Department responded to a 911 call seeking medical attention for a 22-year-old college student, who died of a heroin overdose that night. The investigation revealed that the college student ordered the heroin from Copeland in a series of text messages earlier that afternoon.

That evening, Copeland delivered the heroin outside the apartment where the college student was staying. The college student subsequently used the heroin Copeland sold, causing his death. Investigators identified Copeland as the heroin seller by arranging undercover drug purchases with the same phone number Copeland used on April 10, 2018.

Copeland sold drugs to the undercover officer on multiple occasions inside his car. Copeland, who has a history of drug trafficking offenses, admitted to trafficking in heroin and acknowledged that the heroin he sold caused the victim’s death.

DeAngelo Copeland, a/k/a Lo, 37, of Atlanta, Georgia, was sentenced by U.S. District Judge Mark H. Cohen to 15 years, eight months in prison to be followed by five years of supervised release after pleading guilty to the charge of distributing heroin on September 9, 2021.

This case was investigated by the Atlanta-Carolinas High Intensity Drug Trafficking Area (HIDTA) Task Force, with valuable assistance by the Atlanta Police Department.

High Intensity Drug Trafficking Areas (HIDTA) program, created by Congress with the Anti-Drug Abuse Act of 1988, provides assistance to Federal, state, local, and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States.

Assistant U.S. Attorneys Nicholas Hartigan and Calvin A. Leipold, III 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 –Derrick Guffie, an armed career criminal, has been sentenced to federal prison for illegal drugs and firearm sales. Guffie was involved in nine drug transactions and sold firearms on three occasions.

“Guffie is a violent felon with convictions for manslaughter, aggravated assault, and robbery by force,” said U.S. Attorney Kurt R. Erskine.  “This sentence will remove him from the community and sends a strong message that those who promote violence in our communities will face the same fate.”

“ATF is committed to assisting our law enforcement partners in targeting armed drug and firearms traffickers and removing them from our communities” said ATF Assistant Special Agent in Charge Alicia Jones. “Guffie’s status as an armed career criminal highlights the threat he posed to the residents of Atlanta and law enforcement and we are proud to announce that he will be spending a substantial amount of time in prison.”

According to U.S. Attorney Erskine, the charges and other information presented in court: On September 11, 2019, a man was shot in the head in front of Guffie’s driveway in Atlanta, Georgia, in retaliation for the theft of two kilograms of cocaine.  ATF then began investigating drug trafficking in the area. During the investigation, Guffie sold methamphetamine [and other drugs] to an undercover federal agent on nine occasions, and illegally sold guns to the agent on three occasions.  

On February 16, 2020, Guffie was arrested on state probation charges. However, even after his arrest, Guffie unsuccessfully attempted to coordinate illegal drug and firearm sales from prison.

Darrick Guffie, 46, of Atlanta, Georgia, was sentenced by U.S. District Judge Eleanor Ross, to 15 years and eight months in prison to be followed by five years of supervised release. On September 27, 2021, he pleaded guilty to the offense of possession with intent to distribute methamphetamine and two counts of felon-in-possession of a firearm.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Atlanta 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 - The Justice Department announced the recipients of the Fifth Annual Attorney General’s Award for Distinguished Service in Community Policing. This year’s awards recognize the exceptional work of 18 law enforcement officers and deputies from 12 jurisdictions across the country.

Attorney General Garland announced the award recipients in Atlanta, Georgia.  Later, he attended a ceremony for three award recipients from the DeKalb County Police Department. 

“The work of law enforcement has always been difficult—but perhaps no more so than in the recent past, as officers have faced a host of significant challenges. The officers and deputies receiving this year’s awards demonstrate how so many go above and beyond, even in the midst of trying circumstances,” he said. “Every day, thousands of people who work in law enforcement forge and maintain strong community ties that are essential for ensuring public safety. The recipients of this award represent quintessential examples of such critical efforts. It is an honor to recognize them.”

“Community policing depends on active engagement by law enforcement,” said U.S. Attorney Kurt Erskine.  “The award recipients developed creative ways to reach out to youth in DeKalb County when the pandemic threatened to leave at-risk youth with no summer programs.  It is through this kind of creative approach that we built trust with the citizens law enforcement serves.”

The Attorney General’s Award recognizes individual state, local, Tribal, and territorial police officers, deputies, and troopers for exceptional efforts in community policing. The awarded officers and deputies have demonstrated active engagement with the community in one of three areas: innovations in community policing, criminal investigations, or field operations. This year, the Department received 185 nominations from 145 agencies, recognizing a total of 347 individual officers, deputies, and troopers. There were 39 states represented in the nomination pool, covering state, local, campus, sheriff, and other agency types.

The work being honored this year reflects numerous examples of law enforcement officers working closely with the community to build trust, solve problems, reduce crime, and improve public safety.

The Department of Justice works closely with national law enforcement stakeholder groups during the award review period, taking advantage of their expertise and experience to determine the recipients in a competitive nomination process. The Department also works closely with its components, utilizing the breadth of knowledge within the Department to ensure a successful program that honors the exceptional service of our nation’s law enforcement officers and deputies.

Complete information on the Fifth Annual Attorney General’s Award for Distinguished Service in Community Policing can be found at https://www.justice.gov/ag/policing-award.

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 Kirton has been sentenced for running an access device fraud scheme that involved stealing over $600,000 in fraudulent tax refunds from the Internal Revenue Service.

“Kirton created technical ‘solutions’ to conduct his own fraud schemes and help others commit fraud,” said U.S. Attorney Kurt R. Erskine. “Every thief believes they have developed a new undetectable method to steal.  As in this case, they will be caught, prosecuted, and face years in federal prison to contemplate their failed endeavor.”

“Kirton was part of a significant tax fraud scheme and his operation defrauded American taxpayers by using stolen identities to solicit the issuance of fraudulent tax refunds,” said Special Agent in Charge, James E. Dorsey, IRS. “This sentencing should serve as a warning to other would-be schemers.   As tax filing season continues, those attempting similar thefts from the US Treasury should be aware, Special Agents of IRS – Criminal Investigation will continue the aggressive pursuit of anyone attempting to defraud America's tax system."

“As evidenced by the length of the prison sentence in this case, fraud is a pernicious crime, especially when it involves identity theft.” said U.S. Secret Service Special Agent in Charge Steven R. Baisel. “The Secret Service along with our federal partners will continue to aggressively investigate and bring to justice those attempting to compromise our financial infrastructure.”

“The egregious criminal conduct in this case resulted in the theft of both identities and tax refunds, and shows once again that crime does not pay,” stated Kyle A. Myles, Special Agent in Charge, Federal Deposit Insurance Corporation – Office of Inspector General (FDIC-OIG).  “We continue to work together with our law enforcement partners to combat financial crime -- and its impact on our nation’s banks and financial institutions.”

According to U.S. Attorney Erskine, the charges and other information presented in court: Kevin Kirton created a computer program to file fraudulent federal income tax returns with the IRS. The computer program stored stolen identities and could be used to submit fraudulent tax returns in the names of stolen identities to the IRS, effectively automating stolen identity tax refund fraud. The computer program could be accessed remotely via the internet to prepare fraudulent tax returns. The resulting fraudulent tax refunds were deposited onto prepaid debit cards in the names of identity theft victims.

To help conceal the fraud activity, Kirton developed techniques to hide Internet Protocol addresses so the IRS could not trace a fraudulent tax return back to one particular origination point. Kirton also set up a bootleg phone system that he believed would not be susceptible to wiretaps to communicate with other criminals.

A search warrant was conducted at Kirton’s residence and law enforcement discovered, among other things, hundreds of prepaid debit cards in the names of identity theft victims and numerous fake driver’s licenses. Law enforcement also found a Treasury Inspector General for Tax Administration information booklet titled “Income and Withholding Verification Processes are Resulting in the Issuance of Potentially Fraudulent Tax Refunds.”

While Kirton’s case was pending and he was out on bond, he telephonically contacted an associate who was detained at the Robert A. Deyton Detention Facility, seeking to influence the testimony of a cooperator in his case. Recorded jail calls between Kirton and his jailed associate show that Kirton repeatedly sought to convey veiled threats to the cooperator through the jailed associate. Due to this conduct, Kirton’s bond was revoked and he was detained pending resolution of his case.

Kevin Kirton, 44, of Dallas, Georgia, was sentenced on March 14, 2022, to six years, nine months in prison, to be followed by three years of supervised release, and ordered to pay restitution in the amount of $629,551. On June 17, 2021, he pleaded guilty to access device fraud and aggravated identity theft.

This case was investigated by the Internal Revenue Service - Criminal Investigation, the U.S. Secret Service, and the Federal Deposit Insurance Corporation – Office of Inspector General.

Assistant U.S. Attorneys Samir Kaushal and Alana Black and Special Assistant U.S. Attorney Zack Howard 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 - Jianjie Liu has pleaded guilty to conspiracy to commit money laundering.  Liu was charged in an 11-count indictment with money laundering conspiracy, nine counts of money laundering, and access device fraud.  These charges stemmed from Liu’s role receiving money from victims of various telephone scams.

“Liu laundered hundreds of thousands of dollars from schemes that bilked elderly victims,” said U.S. Attorney Kurt R. Erskine.  “Telephone scams regularly victimize the elderly and Liu played a pivotal role, receiving money directly from the victims.”

“This guilty plea demonstrates that my office will continue to pursue perpetrators of these malicious Social Security-related scams that prey upon unsuspecting people, especially the elderly, to deprive them of their assets and resources,” said Gail S. Ennis, Inspector General for the Social Security Administration. “I thank the Duluth Police Department for their assistance in this investigation and I thank the U.S. Attorney’s Office for prosecuting this case.”

According to U.S. Attorney Erskine, the charges and other information presented in court: in October 2019, Liu was arrested at a Walmart in Duluth, Georgia after she tried to purchase a suspicious number of gift cards.  A search of her car found over 700 blank gift cards.  A search of her phone revealed victim information.  When contacted, the victims, most of whom were elderly, all reported that they had been victims of various telephone scams. 

For example, an 89-year-old priest in Minnesota was victimized when a scammer, posing as an employee of an internet security company, offered him a $555 rebate.  In order to get the rebate, the priest provided access to his bank account.  The scammer pretended to mistakenly deposit $20,555 into the priest’s account.  He asked the priest to return $20,000 by sending a $20,000 check to a bank account that Liu controlled.

In another scam, a 73-year-old woman in Washington was victimized when a scammer posing as a Facebook friend sent her a message telling her that she may qualify for a $150,000 government grant.  The fake “friend” put her in touch with a scammer posing as a government agent.  The purported ‘government agent’ advised the victim that she could only get the grant after she paid various fees.  The victim sent three checks for $2,500, $4,000, and $4,500 to various addresses in the United States.  She then purchased a $1,000 gift card and provided the PIN and access information to the fictitious government agent.  The same day, Liu used the information from the gift card to purchase other gift cards in Louisiana.

In yet another scam, a 78-year-old man in South Carolina, was scammed when he received a call from someone claiming to be a police officer.  The fictitious police officer told the victim that his grandson had been arrested and needed $9,000 in bail money.  The victim sent a check for $9,000 to an address in Las Vegas.  Later, the scammer called back and told him that his grandson had injured a police officer and the victim needed to pay the officer’s hospital bill.  The victim then sent $5,000 to an account that Liu controlled.

The victims who sent Liu money lost hundreds of thousands of dollars. Liu personally received over $150,000.  After Liu was indicted and was on pretrial release, she continued to receive money from scam victims.  The court revoked her bond and detained her.  Rather than appear in court, Liu fled the country and was on the run for approximately seven months.  Liu was arrested at the Texas border while trying to re-enter the United States and is currently detained.

Jianjie Liu, 44, of Cypress, Texas, pleaded guilty to one count of conspiracy to commit money laundering.  Sentencing is scheduled for June 16, 2022, at 9:00 a.m., before U.S. District Judge Eleanor L. Ross.

This case is being investigated by the Social Security Administration - Office of the Inspector General and Duluth Police Department.

Special Assistant U.S. Attorney Diane C. Schulman is prosecuting the case.

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.

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. - Henry Jonathan Saravia has pleaded guilty to possessing a firearm while being a convicted felon. Saravia was previously convicted of several violent felonies, including homicide by vehicle and aggravated assault.

“Preventing felons from possessing firearms, especially individuals like Saravia with a prior history of violence, is a priority for our office,” said U.S. Attorney Kurt R. Erskine. “Our federal and local partnership and collaboration plays a critical role in making our streets safer by preventing future acts of violence by this type of defendant.”

“Firearms in the hands of convicted felons pose a danger to all communities,” said ATF Assistant Special Agent in Charge Beau Kolodka.  “We are pleased that we were able to work with our partners at the Stephens County Sheriff’s Office to remove Saravia from the streets of our community and put him in Federal prison.”

“This case is an example of how effective joint collaboration between local, state, and Federal government can be and in doing so come together to get a dangerous and violent offender off of our streets,” said Stephens County Sheriff Randy Shirley.

According to Acting U.S. Attorney Erskine, the charges and other information presented in court: On May 2, 2021, a concerned citizen called 911 about a car blocking traffic in Toccoa, Georgia. Stephens County Sheriff’s deputies arrived on the scene and encountered Saravia asleep at the wheel, and his vehicle in drive.

Deputies found a firearm in Savaria’s waistband when they removed him from the vehicle. Savaria was prohibited from possessing a firearm due to prior felony convictions of Vehicular Homicide, Aggravated Assault, and Possession of Methamphetamine.

Sentencing for Henry Jonathan Saravia, 35, of Lawrenceville, Georgia, has not been scheduled yet.  Saravia pleaded guilty to felon in possession of a firearm.

This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Stephens County 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 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 – Clairvorn Kelly, the final defendant among a trio of indicted firearms traffickers, has been sentenced for conspiring to straw purchase firearms, illegal dealing in firearms, unlawfully transferring firearms to an out of state resident, and possession of a firearm with an obliterated serial number. Co-defendants Jahziah Roy Lewis and Deja Bess have previously been sentenced for their roles in the criminal scheme.

“Straw purchasers of firearms, like these defendants, facilitate the transfer of weapons to felons and impede the efforts of law enforcement officers to stem the tide of illegal firearms in U.S. cities and abroad,” said U.S. Attorney Kurt R. Erskine. “We will continue leveraging our partnerships with ATF, BIS, HSI, and state and local law enforcement partners, to disrupt the illegal flow of weapons onto our streets.”

“This case and ultimate conviction highlights the fact that illegal gun trafficking not only affects our local communities but has implications far beyond our borders,” said ATF Assistant Special Agent in Charge Beau Kolodka. “At a time in which our ports, are seeing unprecedented traffic, this case highlights the need for ATF and our partners to be vigilant in investigating and prosecuting individuals who supply the illegal arms trade.”

"Illegally exporting firearms from the United States is a serious violation of our nation’s export control laws and can have dire consequences abroad,” said Nasir Khan, Acting Special Agent in Charge of the U.S. Department of Commerce’s Office of Export Enforcement, Miami Field Office. “Disrupting trafficking networks is a priority for OEE Special Agents. We will continue to work with our law enforcement partners to prevent firearms from potentially falling into the wrong hands overseas.”

“HSI’s work to prevent the smuggling of illegal weapons, and their associated violence, 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.”

According to U.S. Attorney Erskine, the charges and other information presented in court: Between February 18, 2017, and May 14, 2020, Clairvorn Kelly, a St. Kitts and Nevis citizen, along with his two accomplices, Jahziah Roy Lewis and Deja Bess, engaged in an international weapons trafficking conspiracy to purchase and illegally export approximately 36 firearms from the United States to the United Kingdom and the Caribbean via the U.S. Postal Service. Multiple firearms purchased by the defendants in Georgia were recovered in the United Kingdom and St. Kitts and tied to various criminal networks abroad.

At the time of the firearm purchases, Kelly, Lewis, and Bess conspired to, and did, complete firearms sales in which they falsely claimed to be the actual buyers of the firearms when they knew that they were buying the guns for someone else. Kelly then obliterated serial numbers on the firearms.  The defendants illegally exported the weapons abroad.

U.S. District Judge Thomas W. Thrash sentenced each of the defendants as follows:

• Clairvorn Kelly, 25, of St. Kitts and Nevis, was sentenced for of four years, three months of imprisonment, to be followed by three years of supervised release.  Kelly was convicted of conspiring to straw purchase firearms, illegal dealing in firearms, unlawfully transferring firearms to an out of state resident, and possession of a firearm with an obliterated serial number. 

• Jaziah Roy Lewis, 30, of Saint Kitts and Nevis, was sentenced on September 14, 2021, to four years, nine months of imprisonment, to be followed by three years of supervised release.  Lewis pleaded guilty to conspiring to straw purchase firearms, possession of a firearm with an obliterated serial number, exporting firearms outside the United States, and possession with intent to distribute marijuana.

• Deja Bess, 25, of Atlanta, Georgia, was sentenced on November 15, 2021, to three years of probation.  Bess pleaded guilty to one count of straw purchasing a firearm. 

The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Bureau of Industry and Security, and the Department of Homeland Security, with assistance from the United States Postal Service and the United Kingdom National Crime Agency, investigated this case. 

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 – The U.S. Attorney’s Office for the Northern District of Georgia along with the Office of the Georgia Attorney General, six metro-Atlanta District Attorneys, the FBI Atlanta Field Office, U.S. Secret Service, Georgia Bureau of Investigation, and local law enforcement joined forces one year ago to combat the laundering of cyber-enabled fraud proceeds through banks in the Atlanta area.  This month the Georgia Cyber Fraud Task Force marks the anniversary with successes in prosecution, community outreach, and training events to combat the rise of “money mule” activity here in Atlanta. 

“As a result of the extraordinary partnership between federal, state, and local law enforcement agencies, money mules and other enablers of cyber-fraud related crimes in our District will be held accountable for their illegal conduct on a broad scale,” said U.S. Attorney Kurt R. Erskine.  “This type of coordination and partnership strengthens our law enforcement response and works to protect our citizens.”

“For over a year, our Cyber Fraud Task Force has worked to investigate, prosecute and prevent cybercrime, and we are already moving the needle significantly,” said Georgia Attorney General Chris Carr. “Through enhanced communication and collaboration on the local, state, and federal levels, we are strengthening our response to address this problem head-on and ensure bad actors are held accountable. We are proud of the role our office plays in protecting Georgia's citizens and businesses from cyber fraud schemes, and we will continue our efforts to disrupt this type of criminal enterprise in our state.”

“These important cases can seem daunting to an individual agency, but when you have a task force like this one full of resources, we can work together to bring justice to victims. The Clayton County District Attorney’s Office looks forward to continued partnership and success with the Georgia Cyber-Fraud Task Force,” said Clayton County District Attorney Tasha Mosley.

“We are proud to work together with our local, state, and federal law enforcement agencies to combat cyber fraud. We will continue to do our part to hold accountable the criminals who hide behind computer screens and phone calls to rob our citizens of their hard-earned money,” said Cobb County District Attorney Flynn D. Broady Jr.

“The Office of the DeKalb County District Attorney remains committed to this partnership. Combatting cyber fraud is a top priority as we endeavor to protect unwitting and vulnerable individuals and entities from this predatory crime. Joint collaboration between local, state and federal partners is integral to our success,” said DeKalb County District Attorney Sherry Boston.

“It is no secret that fraud is a major problem in Atlanta.  That is why I have made it a priority for my office’s White Collar Crime Unit to participate in the Georgia Cyber Fraud Task Force alongside our fellow Metro Atlanta law enforcement partners to keep money out of the hands of criminals.  I promised the citizens of Fulton County that I would protect our community from criminal enterprises, and that is exactly what this task force is accomplishing,” said Fulton County District Attorney Fani Willis.

“As these crimes become more prevalent, it is imperative that we work in concert to obliterate them.  Our constituency is placed in peril when criminals take advantage of them.  The financial cyber fraud task force is a strong vehicle to keep our communities safe and we look forward to continued work with them,” said Gwinnett Judicial Circuit District Attorney Patsy Austin-Gatson.

“The FBI would like to thank our federal, state and local partners for their successful coordinated effort to fight cyber fraud throughout the state of Georgia over the past year,” said Philip Wislar, Acting Special Agent in Charge of FBI Atlanta. “We plan to continue working together to tackle the ever-changing cyber threat through continuous community education on cyber hygiene and relentless pursuit in investigating and prosecuting cyber criminals.”

“The success of the Georgia Cyber-Fraud Task Force relies on the dedication of its partners,” said Steven R. Baisel, Special Agent in Charge, U.S. Secret Service-Atlanta Field Office. “We will continue to provide the resources needed to fight this kind of fraud.”

“With advancements in technology, Georgians and Georgia businesses are highly susceptible to online fraud. By partnering with the members of this task force, the GBI’s Georgia Cyber Crime Center (G3C) has successfully conducted several cyber investigations in an effort to help combat these fraudulent schemes,” said Vic Reynolds, Director, Georgia Bureau of Investigation.

Business Email Compromise (BEC) fraud schemes, romance scams, sweepstakes scams, and so-called grandparent scams, all result in a signification amount of personal and business wealth being funneled by fraudsters into bank accounts opened for the purpose of accepting those fraud proceeds.  The person responsible for opening the bank account, or accepting the funds into an already existing account, is referred to as a “money mule;” their job is to accept the money and transfer most of it on to other fraudsters in the scheme—their payout is to keep a portion of the money.  FBI statistics show Atlanta in the top five cities nationwide for money mule activity. 

The task force has engaged with business leaders and community organizations to raise awareness of the money mule issue in our city, including presentations to banking and real estate professionals’ groups as well as the Georgia Attorney General’s Consumer Protection Board.  Members of the task force have made presentations to church and community groups to provide valuable information to citizens about how to avoid becoming a victim and what to do in the event that a scam is successful.  The task force is also committed to the training and continuing education of both prosecutors and law enforcement tasked with responding to these crimes and has made several presentations to law enforcement and investigator groups both locally and nationally.  

During the past year, the Georgia Cyber Fraud Task Force has referred out over 50 leads to local and state law enforcement for investigation of money mules.  Those leads have come from the Internet Crime Complaint Center, known as IC3, and from leads sent to the task force from law enforcement all over the country through the StopTheMuleGa initiative. 

The leads have so far resulted in charges against the following individuals:

•  Bernard Kaba, 61, of Morrow, Georgia, is charged with three counts of theft by taking in connection with his receipt of BEC fraud proceeds.

•  Borin Khoun, 44, of Lawrenceville, Georgia, is charged with four counts of theft by taking in connection with his receipt of fraud proceeds from a romance scam.

•  Mark L. Jones, 65, of Atlanta, Georgia, is charged with one count of theft by taking in connection with his receipt of BEC fraud proceeds that had targeted the proceeds of a real estate closing.

•  Bobby Umogbai, 24, of Atlanta, Georgia, was arrested on theft charges related to his receipt of BEC fraud proceeds. 

•  Alexis Garcia, 24, of Smyrna, Georgia, is charged with wire fraud and money laundering charges related to his receipt of proceeds from a government imposter scam. 

•  Olayemi Fadipe, 40, of Duluth, Georgia, was arrested on theft charges related to his receipt of fraud proceeds from the victim of a romance scam. 

•  Eugene W. McNair Jr., 50, of Lawrenceville, Georgia, was arrested on theft charges related to his receipt of BEC fraud proceeds. 

•  Chigbogwu G. Nnamani, 52, of Lawrenceville, Georgia, was arrested on theft charges related to his receipt of BEC fraud proceeds. 

Members of the public are reminded that these are only charges.  The defendants are 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.

The Georgia Cyber Fraud Task Force members include representatives from the following agencies: United States Attorney’s Office, Georgia Attorney General’s Office, Cobb County District Attorney, Clayton County District Attorney, DeKalb County District Attorney, Douglas County District Attorney, Fulton County District Attorney, Gwinnett County District Attorney, Federal Bureau of Investigation, U.S. Secret Service, Georgia Bureau of Investigation, Atlanta Police Department, Riverdale Police Department, Gwinnett County Police Department, Alpharetta Police Department, DeKalb County Police Department, Dunwoody Police Department, East Point Police Department, South Fulton Police Department, Smyrna Police Department, Sandy Springs Police Department, and Georgia Department of Driver Services. 

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 – England Associates, L.P. d/b/a New London Health Center (“New London”) agreed to pay $400,000.00 to resolve allegations that it knowingly submitted false claims to Medicare for rehabilitation therapy services that were not reasonable, necessary, and skilled.  The settlement amount was based on New London’s ability to pay.

“Nursing home facilities provide important services to our elderly; however, those facilities must uphold the trust placed in them by billing the government only for reasonable and necessary services,” said U.S. Attorney Kurt R. Erskine. “This settlement demonstrates our continuing efforts to protect patients and taxpayers by ensuring the that the care provided to beneficiaries of government-funded health care programs is dictated by clinical needs, not a provider’s fiscal interests.

“When funds from programs like Medicare are not used as intended, taxpayers and people who are entitled to those funds suffer,” said Philip Wislar, Acting Special Agent in Charge of FBI Atlanta. “This settlement is the result of the FBI’s commitment to work with our federal and state partners to ensure that federally funded healthcare programs are not abused by providers.”

“The provision of medical services should be based on a patient’s medical needs rather than the financial interests of providers,” said Special Agent in Charge Tamala E. Miles of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Working closely with our law enforcement partners, we will continue to hold accountable individuals who endanger the integrity of federal healthcare programs and the beneficiaries they serve.”

The government alleged that between January 1, 2011 and November 30, 2014, New London engaged in various practices that resulted in the submission of claims for unreasonable, unnecessary, and unskilled services to Medicare patients, including: (1) presumptively placing patients in the Ultra High therapy reimbursement level, rather than relying on individualized evaluations to determine the level of care most suitable for each patient’s clinical needs; (2) providing the minimum number of minutes required to bill at a given reimbursement level while discouraging the provision of additional therapy beyond that minimum threshold; (3) ramping up therapy minutes only during the period in which billing levels were set; and (4) pressuring therapists and patients to complete the planned minutes of therapy regardless of patient need, and in some cases, for patients for whom such therapy would have been dangerous.

The Government alleges that these arrangements violated the False Claims Act, 31 U.S.C. § 3729, et seq.

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

The civil settlement was reached by Assistant U.S. Attorney David A. O’Neal. 

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

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.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. – Michael Lee Spears, Dustin Wayne Womack, and Jarrett Louallen have been sentenced for firearms and drug trafficking crimes that occurred in Rome, Georgia.

“Our community is safer with these violent felons and drug pushers no longer on the streets,” said U.S. Attorney Kurt R. Erskine. “We are grateful for the hard work and the longstanding partnerships between federal and state law enforcement agencies in Northwest Georgia.”

“The sentencing of these three men demonstrates the FBI and our law enforcement partners commitment to protect our citizens against violent offenders,” said Philip Wislar, Acting Special Agent in Charge of FBI Atlanta. “The FBI will continue to use aggressive approaches to identify, disrupt, and dismantle violent offenders and their criminal enterprises, ultimately making our communities safer.”

“The hard work of law enforcement and prosecutors to stop offenders from plaguing neighborhoods with illegal drugs and guns makes a big impact on communities. We will continue to work with our partners to investigate these crimes to dismantle criminal enterprises,” said Vic Reynolds, Director, Georgia Bureau of Investigation.

According to U.S. Attorney Erskine, the charges and other information presented in court: On May 13, 2019, the Floyd County Police Department responded to a 911 call about someone shooting a firearm at a residence. Law enforcement developed information indicating the person living at that residence had been involved in a dispute with Jarrett Louallen prior to the shooting. The FBI further learned that Louallen may have taken the firearm used in the shooting to Talladega, Alabama.

On June 24, 2019, law enforcement officers traveled to Louallen’s relatives’ home in Talladega, Alabama. Law enforcement located the firearm, which was an AM 15 semi-automatic rifle with a 30-round magazine with the serial numbers removed and painted over with black paint. The FBI confirmed that Louallen was the individual who shot at the residence after reviewing video surveillance.

On May 22, 2019, investigators conducted an undercover drug buy with Michael Lee Spears. Spears sold 132.237 grams of methamphetamine during the operation.

The following day, members of the Rome/Floyd Metro Task Force, the Rome SWAT Team, and the FBI executed a search warrant at Spears’ residence. Spears fired at the officers from inside his residence. Law enforcement officers returned fire and Spears eventually surrendered.

In addition, on June 21, 2019, the FBI and law enforcement officers with the Rome/Floyd Metro Task Force, the Floyd County Sheriff’s Office, the Floyd County Police Department, the Rome Police Department, traveled to the Sunrise Inn in Rome, Georgia, to execute an arrest warrant for a probation violation for Dustin Wayne Womack. As officers approached the door, they could hear people inside moving around. Officers kicked open the door and saw Womack running towards the bathroom. An officer heard an object land in the bathtub and saw a firearm. Law enforcement obtained a search warrant for the room and, during the search, recovered 118.952 grams of methamphetamine, two digital scales, and a glass smoking device.

The defendants’ sentences are as follows:

• Michael Lee Spears, 46, of Rome, Georgia, was sentenced by U.S. District Court Judge Mark H. Cohen to eight years, eleven months in prison, to be followed by five years of supervised release. This sentence accounts for the two years, nine months he has already spent in custody. Spears was convicted on charges of possession with intent to distribute methamphetamine and possession of a firearm by a convicted felon on June 23, 2021, after he pleaded guilty.

• Dustin Wayne Womack, 32, of Lindale, Georgia, was sentenced by U.S. District Court Judge Thomas W. Thrash, Jr., to ten years in prison, to be followed by three years of supervised release. Womack was convicted on charges of possession with intent to distribute methamphetamine and possession of a firearm by a convicted felon on July 22, 2021, after he pleaded guilty.

• Jarrett Louallen, 34, of Rome, Georgia, was sentenced by U.S. District Court Judge Thomas W. Thrash, Jr., to five years, ten months in prison, to be followed by three years of supervised release. Louallen was convicted of one charge of possession of a firearm by a convicted felon on March 31, 2021, after he pleaded guilty.

These cases were investigated by the Federal Bureau of Investigation and the Georgia Bureau of Investigation, with significant assistance provided by the Rome/Floyd Metro Task Force. Additionally, agencies involved were the Floyd County Police Department, Floyd County Sheriff’s Office, Rome Police Department, and the Floyd County District Attorney’s Office.

Assistant U.S. Attorney Erin N. Spritzer 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 - Muneeb Syed, a/k/a Ed Syed, has pleaded guilty to charges that he fraudulently obtained auto financing in connection with his used car businesses.

“We expect businesses to operate lawfully,” said U.S. Attorney Kurt R. Erskine.  “Instead, this defendant took advantage of a legitimate car financing plan, resulting in his federal conviction on fraud charges.”

“Syed used deceit and fraud to obtain loans that he was not entitled to receive,” said Philip Wislar, Acting Special Agent in Charge of FBI Atlanta. “His guilty plea is a reminder that the FBI remains dedicated to investigating these types of crimes and bringing the offenders to justice.”

According to U.S. Attorney Erskine, the charges and other information presented in court: Muneeb Syed owned Georgia Luxury Cars, LLC, a Marietta used car dealership, as well as other dealerships in Georgia and Alabama.  Georgia Luxury Cars had a floor plan financing agreement with Alphera Financial Services, a division of BMW Financial Services NA, LLC, and other financing companies.  Floor plan financing allows a dealership to borrow money from a lender to purchase inventory.  The company is obligated to repay the lender upon the sale of the cars.  Georgia Luxury Cars could request financing directly using an on-line system that relied upon the information provided by Georgia Luxury Cars.  Syed utilized this floor plan financing to obtain cars.  He purchased cars in a variety of ways, including through auctions.  Generally, if Georgia Luxury Cars bought a car at auction, the financing company would pay the auction company directly for the car, and Georgia Luxury Cars owed the financing company under the floor plan agreement.

Beginning in September 2019, Syed began to obtain fraudulent floor plan loans through two different methods.  First, Syed falsely claimed to have purchased multiple cars through various auctions.  In reality, Syed never purchased these cars but still received funds from BMWFS to which he was not entitled.  He did this for over 25 cars and fraudulently received over $1.6 million. 

Second, Syed obtained floor plan financing from multiple companies for the same car.  That is, he submitted the same car to two or more different financing companies, receiving financing from each company.  He did this for approximately 30 cars, fraudulently receiving over $700,000.

Sentencing for Muneeb Syed, 46, of Atlanta, Georgia, is scheduled for June 15, 2022, at 10:00 a.m. before U.S. District Judge Mark H. Cohen.  Syed pleaded guilty to wire fraud.

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

Assistant U.S. Attorney Christopher J. Huber, Deputy Chief of the Complex Frauds Section, 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 - Tamar Lee has been sentenced for conspiring to present false claims for refunds to the Internal Revenue Service.

“The defendants stole the personal identifying information of innocent victims, netting more than $1 million in fraudulent refunds,” said U.S. Attorney Kurt R. Erskine. “As we approach tax season, it is important to protect personal information from thieves who use it to further schemes like the one in this case.”

“Lee and her co-conspirators demonstrated a blatant disregard for the integrity of the United States tax system and caused immeasurable hardship to innocent victims, said James E. Dorsey, Special Agent in Charge, IRS, Criminal Investigation, Atlanta Field Office.  “Let the sentencing today be a warning to individuals who dare to commit identity theft and refund fraud of this magnitude.  They will be punished to the fullest extent of the law.   IRS Criminal Investigation remains committed to pursuing identity theft and refund fraud with our partners at the U.S. Attorney’s Office.”

According to U.S. Attorney Erskine, the charges and other information presented in court: Tamar Lee and co-conspirator Don Terry obtained names and personal identifying information for individuals, without their knowledge and consent. Many of the victims lived outside of Georgia, with some residing in shelters or prison at the time the tax returns were filed.

Lee and Terry provided the victims’ information to a now deceased co-conspirator, a local tax return preparer with her own tax preparation business.  The fraudulent Form 1040 U.S. Individual Income Tax Returns were prepared and electronically filed from the co-conspirator’s business. The tax returns included false Forms W-2 listing employers for whom the victims did not work. They also claimed refunds based on false claims of federal income tax withholdings never paid to IRS.

The same tax preparer also used a refund transfer service, Refund Advantage, which allowed the co-conspirator to print refund checks at her place of business. When the IRS paid refunds, the tax preparer accordingly printed the checks and gave them to Terry and Lee who then deposited them into bank accounts Lee opened and controlled. Lee paid the co-conspirators a portion of these proceeds.

Lee also used one of her existing companies to file fraudulent Form 1120 U.S. Corporate Income Tax Returns that falsely claimed refunds based on bogus fuel tax credits. This credit allowed companies to offset their tax liability based on certain fuel expenses incurred throughout the year. Lee’s company, however, never incurred such expenses, and therefore did not qualify for the credit. IRS subsequently paid one of the requested refunds by depositing the funds into Lee’s bank account.

Lee, Terry, and co-conspirator Jeffrey Smith were also part of a scheme to submit fraudulent corporate income tax returns that made false claims for refunds. They provided to the deceased tax preparer information for other existing companies, and for companies they created for this scheme, that was used in the preparation and filing of fraudulent Form 1120 U.S. Corporate Income Tax Returns. These returns all falsely claimed refunds based on fuel tax credits to which the companies were not entitled. IRS paid some of the requested refunds by mailing treasury checks to addresses provided by Lee, Terry, and Smith.

Overall, the tax fraud scheme resulted in false claims for refunds in excess of $2 million over a three-and-a-half-year period. IRS consequently paid more than $1 million in refunds for fraudulently filed corporate and individual income tax returns.

Tamar Lee, 53, of Smyrna, Georgia, was sentenced to four years, three months in prison to be followed by three years of supervised release and ordered to pay restitution in the amount of $306,316.22.  Lee was found guilty by a jury on November 4, 2021.

The following also have been sentenced for their role in the tax fraud scheme:

• Jeffrey Smith was sentenced to three years, one months in prison to be followed by three years of supervised release and ordered to pay restitution in the amount of $695,191.
• Don Terry was sentenced to two years in prison to be followed by three years of supervised release and ordered to pay restitution in the amount of $1,332,115.

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

Assistant U.S. Attorneys Tracia King and Brian Pearce 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 - Lucious D. Mack, who falsely claimed and received refunds for fraudulently filed corporate income tax returns, has pleaded guilty to presenting false claims to the Internal Revenue Service and to stealing government funds.

“Mack went to great lengths to deceive the IRS,” said U.S. Attorney Kurt R. Erskine.  “However, their diligence in this case uncovered his deceit, and he now faces the possibility of time in prison.”

“We continue to see individuals attempt to cheat the tax system,” said James E. Dorsey, Special Agent in Charge of IRS Criminal Investigation Atlanta Field Office.  “This plea should be a guiding light to honest taxpayers and would be tax cheats that the IRS and U.S. Attorney’s office will work diligently to protect the integrity of the U.S. Tax administration system, and to make sure everyone complies with their tax obligations.”

According to U.S. Attorney Erskine, the charges and other information presented in court: Lucious Mack filed fraudulent corporate income tax returns that falsely claimed refunds. Specifically, Mack filed a 2015 Form 1120 U.S. Corporate Income Tax Return for his company Carter Industries, Inc.  The tax return falsely claimed that the company pre-paid taxes and paid additional long-term capital gains taxes totaling $235,515.

The long-term capital gains tax payment was supposedly from the sale of property located in Dekalb County, Georgia.  Property records, however, established that Mack’s company never owned the property that was listed in the tax returns supporting documents.

IRS additionally confirmed that the agency never received tax payments of any kind from or on behalf of Carter Industries, Inc. for 2015 tax year.  As a result of the false representations, the tax return fraudulently claimed a refund in the amount of $109,521.

Mack also filed a 2015 Form 1120 U.S. Corporate Income Tax Return for another company, Carter International Holdings, Inc. The tax return likewise falsely claimed the payment of long-term capital gains taxes supposedly from the sale of property, which was located in Bibb County, Georgia.  

Bibb County property records similarly confirmed that Mack’s company never owned the property listed in the tax returns supporting documents. IRS further confirmed that the agency never received tax payments of any kind from or on behalf of Carter International Holdings for tax year 2015.

As a result of the false representation, the tax return for Carter International Holdings, Inc. fraudulently claimed a refund of $105,877.  IRS issued a treasury check for the amount, which Mack deposited into a local bank account and spent the money for his personal benefit.

Sentencing for Lucious Mack, 49, of Atlanta, Georgia, is scheduled for May 10, 2022, at 11:00 a.m. before U.S. District Judge William M. Ray II.

This case is being investigated by the Internal Revenue Service Criminal Investigation.

Assistant U.S. Attorneys Tracia King and Amy Palumbo 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 - Chalmer “Chuck” Detling, II, a disbarred attorney, has been sentenced to prison after being convicted by a jury of wire fraud and aggravated identity theft. Without their knowledge or authorization, Detling used his clients’ identities—sometimes repeatedly—to obtain dozens of fraudulent litigation advances, totaling over $400,000.

“Detling betrayed the trust of his clients, business associates, friends, and family, all to steal money,” said U.S. Attorney Kurt R. Erskine. “This tough but fair sentence should remind those considering similar behavior about the consequences of those decisions, especially licensed professionals who are considering exploiting their clients in a time of need.”

“Detling violated the trust of the clients that hired him and used his position as an attorney not to pursue justice, but to pursue a fraud scheme for personal gain,” said Philip Wislar, Acting Special Agent in Charge of FBI Atlanta. “Because of his self-interest and greed he has not only thrown away his career, but will spend time in prison for his crimes.”  

According to U.S. Attorney Erskine, the charges and other information presented in court: Detling was the owner and operator of the Detling Law Group (which later changed its name to Detling Cole LLC), a personal injury law firm based in Marietta, Georgia. While running his law firm, Detling obtained fraudulent “litigation advances” in the names of his clients, without their knowledge or consent, from financing companies. These litigation advances—essentially high interest non-recourse loans—are intended for personal injury plaintiffs to cover non-litigation related expenses (e.g., living and medical expenses) while their cases are pending. In exchange for a litigation advance, the plaintiff agrees to repay the money received plus interest when his or her case settles or ends favorably at a trial. Because these are high interest advances, plaintiffs typically seek them out only as a matter of last resort.

From October 2014 to April 2016, Detling applied for and received dozens of fraudulent litigation advances, stealing hundreds of thousands of dollars. Detling submitted applications that were purportedly signed and executed by his respective clients, but Detling knew when he submitted the agreement paperwork that the clients had not actually executed the agreements.  He did so even after several clients expressly told him they did not need or want such financing. Detling was able to conceal from his clients that he had obtained the fraudulent advances by having the funds wired or deposited into his law firm’s Interest on Lawyer Trust Account (“IOLTA”) accounts.

Detling was able to secure these fraudulent litigation advances without his clients’ knowledge in part because the financing companies did not require the clients to be present when applying for the litigation advances or receiving the disbursements. He further concealed the fraud from the financing companies by exploiting the trust they placed in him as an attorney, by stringing them along with lies about the status of his clients’ cases and the possibility of future repayment. Detling also executed the scheme in part by submitting forged documents to the financing companies, including a doctored offer letter from an insurance company in which he claimed they offered $250,000 when in fact they offered $2,000 to settle a case.

While Detling was defrauding the financing entities, he was already subject of multiple investigations by the State Bar of Georgia (“Georgia Bar”) involving professional misconduct, including into his alleged mismanagement of client funds and settling of cases without client authority. Detling’s scheme ultimately unraveled when the Georgia Bar received an anonymous note in early May 2016 notifying it about a subset of the fraudulent litigation advances. Shortly after receiving this information, the Georgia Bar alerted the financing companies, Detling’s clients, and the FBI of the apparent fraud. Nonetheless, when subsequently deposed by the Georgia Bar, Detling repeatedly lied under oath about his knowledge and involvement with the fraudulently obtained litigation advances.

As a result of the Georgia Bar’s investigations, on September 1, 2016, the Georgia Supreme Court issued an emergency suspension of Detling’s law license. On October 30, 2016, the Court accepted Detling’s petition to voluntarily surrender his law license, characterizing it as “tantamount to disbarment.” Detling is no longer licensed to practice law in Georgia or elsewhere.

Chalmer “Chuck” Detling, II, 45, of Marietta, Georgia, was sentenced on February 10, 2022, by U.S. District Judge Leigh Martin May to five years and ten months in prison, to be followed by three years of supervised release, and ordered to pay restitution in the amount of $254,837.89. He was originally charged by a federal grand jury in August 2018 with multiple counts of wire fraud and aggravated identity theft. Following an eight-day trial, a jury convicted Detling of four counts of wire fraud and five counts of aggravated identity theft on November 1, 2021.

This case was investigated by the Federal Bureau of Investigation with assistance from the State Bar of Georgia.

Assistant U.S. Attorneys Alex R. Sistla and Samir Kaushal 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 - Heidi Royal, who was employed as an accountant at an Atlanta-based wealth management firm, has pleaded guilty to federal charges arising from a scheme to defraud one of the firm’s clients.

 “Royal exploited the trust placed in her by an elderly client who was unable to manage her own affairs,” said U.S. Attorney Kurt R. Erskine.  “Our office continues to prosecute anyone who targets vulnerable members of the community, especially the elderly.”

“It is very disheartening that Royal manipulated a vulnerable victim and stole much of her hard-earned savings after claiming to be a close friend that was supposed to have her best interests in mind,” said Philip Wislar, Acting Special Agent in Charge of FBI Atlanta. “The FBI will always make it a priority to protect senior citizens from exploitation.”

According to U.S. Attorney Erskine, the charges and other information presented in court: Heidi Royal’s employer was registered with the U.S. Securities and Exchange Commission as an investment adviser. The firm provided investment advice and financial services to C.K., an elderly widow suffering from dementia.

As the firm’s Accounting Manager and Bill-Pay Supervisor, Royal had access to C.K.’s Social Security Number and the usernames and passwords for C.K.’s investment accounts and bank accounts. As part of her duties and responsibilities at the firm, Royal provided professional accounting services and bill-pay services to C.K. for more than 10 years. During that time, Royal gained C.K.’s trust and developed a close personal friendship with her. Royal even told a co-worker at the firm that C.K. was like a grandmother to her.

As a person associated with an investment adviser, Royal owed a fiduciary duty to each of the firm’s clients, including C.K., and Royal was required to act in C.K.’s best interests at all times. Royal was not permitted to pay her own debts and expenses with C.K.’s money.

From approximately June 1, 2010, through March 17, 2021, however, Royal misappropriated approximately $800,000 of C.K.’s money and converted it to her own use.

As part of the scheme, Royal stole C.K.’s annuity payments, wrote more than 200 fraudulent checks on C.K.’s bank accounts, forged C.K.’s endorsement on checks, withdrew cash from C.K.’s bank accounts and converted it to her own use, fraudulently used the electronic bill-pay feature associated with C.K.’s bank accounts to divert money to herself, used PayPal to make electronic payments to herself from C.K.’s bank accounts, impersonated C.K. in telephone conversations with financial institutions; and made false and misleading entries in C.K.’s financial records to make the fraud harder to detect.

In addition, Royal fraudulently used C.K.’s name and Social Security Number to open a secret bank account for the purpose of concealing and disguising the fraud proceeds.

In mid-March 2021, when the firm learned that checks drawn on C.K.’s bank accounts had been deposited into Royal’s personal accounts, the firm immediately terminated Royal and reported the matter to law enforcement.

Heidi Royal, 52, of Dallas, Georgia, pleaded guilty to wire fraud and aggravated identity theft. Sentencing is scheduled for May 31, 2022, at 10:00 a.m., before U.S. District Judge Thomas W. Thrash Jr. 

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

Assistant U.S. Attorneys Russell Phillips and Elizabeth McBath are prosecuting the case.

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.

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 Stonecrest, and Lania Boone, a bookkeeper for the entity that administered COVID-19 relief funds awarded to Stonecrest, have pleaded guilty to charges related to the theft of pandemic relief funds.

“Lary’s guilty plea was the first in righting the wrongs committed against the people of Stonecrest, who were wrongfully deprived of hundreds of thousands of dollars intended to provide COVID-19 relief,” said U.S. Attorney Kurt R. Erskine.  “Boone’s guilty plea further demonstrates our commitment to prosecuting those who seek to exploit COVID relief programs for their own gain.”

“CARES Act funds were intended to help people and businesses harmed by the pandemic, not to line the pockets of public officials entrusted to lead a community”, said Philip Wislar, Acting Special Agent in Charge of FBI Atlanta. “The FBI will do everything in our power to make sure stolen funds are returned to the public, and individuals involved in this type of criminal behavior are prosecuted to the fullest extent of the law.”   

According to U.S. Attorney Erskine, the charges, and other information presented in court: the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was passed in March 2020 to respond to the economic fallout of the COVID-19 pandemic.  Under the CARES Act, the federal government distributed $125 million in COVID-19 relief funds 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.”  Eligible expenditures included medical expenses, public health expenses, and grants to small businesses to reimburse the costs of business interruption caused by required closures. 

In September 2020, Lary, as Mayor, signed a resolution acknowledging the CARES Act requirements and adopting a funding plan for 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, the city contracted with Municipal Resource Partners Corporation, Inc. (“MRPC”) to provide accounting services and to disburse the relief funds as directed by Stonecrest.  Before the contract was signed, Lary worked behind the scenes to form MRPC, recruit its CEO, open its bank accounts, and ensure that Lania Boone would be hired as MRPC’s bookkeeper. 

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.  From about November 2020, until in or about February 2021, Boone signed dozens of checks on behalf of MRPC, directing millions of dollars of relief funds to individuals, businesses, churches, and non-profit organizations.  Lary helped decide where the relief funds were directed.

Abusing the authority conferred on him as mayor, Lary devised and executed a scheme to steal relief funds after they were distributed by MRPC.  First, Lary told churches that received relief funds under 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.  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, Lary 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.  Lary spent the money to pay his own property expenses and his dues to the Georgia Campaign Finance Committee.

In addition, Lary solicited relief funds from businesses that received grants under the Small Business Program.  Lary falsely claimed that the money would be each business’s “contribution” to Stonecrest-related marketing and advertising.  But 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.  Lary used the relief funds deposited into the Visit Us and Battleground Media accounts to benefit himself and others.  For example, Lary used relief funds held by Visit Us to pay for an associate’s political advertising.

Finally, Lary conspired with Boone, MRPC’s bookkeeper, 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 paid by Visit Us for Boone’s son’s college tuition and rent.

Jason Lary, 59, of Stonecrest, Georgia, is scheduled to be sentenced on May 2, 2022, at 10 a.m.  Lania Boone, 60, of Decatur, Georgia, pleaded guilty today to conspiracy to commit federal program theft and is scheduled to be sentenced on May 12, 2022, at 2:00 p.m.

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

Assistant U.S. Attorney Trevor C. Wilmot 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 - Peter Bilardello has been arraigned on federal charges of distribution and possession of child pornography.  Bilardello was indicted by a federal grand jury on January 25, 2022.

“Bilardello allegedly shared child pornography through social media while he was employed as a law enforcement officer,” said U.S. Attorney Kurt R. Erskine. “The victimization of children is one of the most heinous crimes imaginable, and distributing images of child sexual abuse compounds the harm. It is especially troubling that these crimes were allegedly committed by someone in a position of public trust.”

“Every time pornographic images are distributed online, that child is continuously re-victimized”, said Philip Wislar, Acting Special Agent in Charge of FBI Atlanta.  “The FBI will not tolerate predators who prey on our children, especially ones like Bilardello, who are sworn law enforcement officers that took an oath to protect the citizens of our community.”

“The Cobb County Police Department is committed to investigating all crimes committed against the members of our various communities. But when it comes to crimes perpetrated against children, the men and women of our Special Victims Unit are the most dedicated and diligent in law enforcement. Our SVU investigators are committed to being the voices for the voiceless and fully investigating the most heinous acts committed against defenseless children,” said Cobb County Police Department Interim Chief Stuart VanHoozer.

According to U.S. Attorney Erskine, the charges, and other information presented in court: In November 2019, the National Center for Missing and Exploited Children (NCMEC) received a report that a MeWe social media user had allegedly uploaded and shared approximately 12 images depicting children under 12 years old in sexually explicit conduct. NCMEC provided that information to the Georgia Bureau of Investigation (GBI), who determined that the account user was likely located in Marietta, Georgia.  The GBI then referred the information to the Cobb County Police Department.

On August 10, 2021, Cobb County Police determined that the MeWe account user was Peter Bilardello, who at the time was a Cobb County Deputy Sheriff.  He had been employed by Cobb County for more than 15 years.  For part of that time, Bilardello worked in the Sex Offender Unit of the Sheriff’s Office.

Cobb County Police obtained and executed search warrants for the MeWe account, as well as Bilardello’s home and cell phone, and confirmed that Bilardello had uploaded and shared child pornography while chatting with other users.  Investigators also recovered more than 100 images and videos depicting young children in sexually explicit conduct. Bilardello was immediately arrested and resigned from the Cobb County Sheriff’s Office.   

Peter Bilardello, 51, of Marietta, Georgia, was arraigned before U.S. Magistrate Judge Justin S. Anand.  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 Cobb County Police Department.

Assistant U.S. Attorney Annalise K. Peters is prosecuting 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.