Northern District of Georgia

ATLANTA – A superseding indictment has been unsealed against multiple Indian-based call centers and their directors charging that each of them conspired with the previously–indicted VoIP provider E Sampark, and its Director, Guarav Gupta, to forward tens of millions of scam calls to American consumers. The call centers and their directors place the initial scam calls, and the VoIP provider forwards those calls into this country, whereupon the call centers speak to —and attempt to defraud — the American-based victims.

“Scam robocalls cause emotional and financial devastation to victims, particularly our vulnerable and elderly populations,” said U.S. Attorney Kurt Erskine.  “These India-based call centers allegedly scared their victims and stole their money, including some victims’ entire life savings.”

“These developments demonstrate the commitment of the Treasury Inspector General for Tax Administration (TIGTA) to investigate and bring to justice those that victimize the American taxpayer,” said J. Russell George, the Treasury Inspector General for Tax Administration.  “The defendants engaged in multiple scams, often targeting the most vulnerable members of society.  The success of this investigation is the result of a collaborative effort between TIGTA and the dedicated staff at the United States Attorney’s Office.”

According to U.S. Attorney Erskine, the charges, and other information presented in court: Criminal India-based call centers defraud U.S. residents, including the elderly, by misleading victims over the telephone utilizing scams such as Social Security and IRS impersonation as well as loan fraud.

As part of their Social Security scam, India-based callers pose as federal agents in order to mislead victims into believing that their Social Security numbers were involved in crimes. As part of the IRS scam, the callers pose as IRS employees and tell victims that they owe back taxes. In both scenarios, the call centers threaten to arrest the victim if the victim does not send money. Based on misrepresentations made during the calls, the victims, including a number of Georgia residents, mailed money to a network of individuals who allegedly laundered funds on behalf of the overseas fraud network.

As part of the loan scam, India-based callers mislead American consumers into believing that the callers work for lending institutions and that the victims are eligible for fictitious loans. The India–based callers direct the victims to pay upfront fees to demonstrate their ability to repay the loan. At times, the callers direct victims to provide their bank account information and make it appear as though they had deposited funds into the victims’ accounts. The callers then tell the victims to withdraw the funds and transfer them via wire transfer and gift cards. After the victims send the funds, the deposits that the callers supposedly made bounce. The victims receive nothing in return.

The Indian-based call centers and their directors named in the superseding indictment are listed below:

• Manu Chawla and Achivers A Spirit of BPO Solutions Private Limited;
• Sushil Sachdeva, Nitin Kumar Wadwani, Swarndeep Singh, a/k/a Sawaran Deep Kohli, and Fintalk Global;
• Dinesh Manohar Sachdev and Global Enterprises;  
• Gaje Singh Rathore and Shivaay Communication Private Limited;
• Sanket Modi and SM Technomine Private Limited; and
• Rajiv Solanki and Technomind Info Solutions.

The U.S. Treasury Inspector General for Tax Administration (TIGTA) is investigating the case.

Assistant U.S. Attorney J. Elizabeth McBath 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.

The public should exercise caution with any caller who claims to be a government employee. Government agencies will never threaten you with immediate arrest or other legal action if you do not send cash, retail gift cards, wire transfers, or internet currency. They will also never demand secrecy from you in resolving a debt or any other problem.

If you need to send a payment to IRS, the agency will send a letter with payment options and appeal rights. If you suspect you have received an IRS scam call, report it to the Treasury Inspector General for Tax Administration at www.tips.tigta.gov or by calling 1-800-366-4484.

If you need to send a payment to Social Security, SSA will send a letter with payment options and appeal rights. If you suspect you have received a Social Security scam call, report it at https://oig.ssa.gov.

The public is reminded that gift cards are for gifts, not for payments.  If a stranger purporting to be a legitimate business or government agency demands payment with a gift card, hang up and contact law enforcement yourself. If you have fallen victim of a scam, report it to your local law enforcement and at www.ftc.gov/complaint.

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

ATLANTA - U.S. Attorney General Merrick B. Garland today released the Justice Department’s new National Strategy to Combat Human Trafficking pursuant to the Justice for Victims of Trafficking Act.

“Human trafficking is an insidious crime,” said Attorney General Merrick B. Garland.  “Traffickers exploit and endanger some of the most vulnerable members of our society and cause their victims unimaginable harm. The Justice Department’s new National Strategy to Combat Human Trafficking will bring the full force of the Department to this fight.”

“Our team is proud to work alongside our many committed law enforcement and community partners – including federal and state law enforcement agencies, non-profit organizations, and community leaders – to combat the scourge of human trafficking,” said U.S Attorney Kurt R. Erskine.  “We continue to draw on these critical resources to vigorously prosecute those who commit these crimes, as well as to mobilize resources to aid, support, and help trafficking victims in our district.”

Rooted in the foundational pillars and priorities of the interagency National Action Plan to Combat Human Trafficking, which President Biden released on Dec. 3, 2021, the Justice Department's National Strategy is expansive in scope.  It aims to enhance the department's capacity to prevent human trafficking; to prosecute human trafficking cases; and to support and protect human trafficking victims and survivors.

Among other things, the Justice Department’s multi-year strategy to combat all forms of human trafficking will:

• Strengthen engagement, coordination and joint efforts to combat human trafficking by prosecutors in all 94 U.S. Attorneys’ Offices and by federal law enforcement agents nationwide.
• Establish federally-funded, locally-led anti-human trafficking task forces that support sustained state law enforcement leadership and comprehensive victim assistance.
• Step up departmental efforts to end forced labor by increasing attention, resources and coordination in labor trafficking investigations and prosecutions.
• Enhance initiatives to reduce vulnerability of American Indians and Alaska Natives to violent crime, including human trafficking, and to locate missing children.
• Develop and implement new victim screening protocols to identify potential human trafficking victims during law enforcement operations and encourage victims to share important information.
• Increase capacity to provide victim-centered assistance to trafficking survivors, including by supporting efforts to deliver financial restoration to victims.
• Expand dissemination of federal human trafficking training, guidance and expertise.
• Advance innovative demand-reduction strategies.

The department’s strategy will be implemented under the direction of the National Human Trafficking Coordinator designated by the Attorney General in accordance with the Abolish Human Trafficking Act of 2017.

If you believe that you or someone you know may be a victim of human trafficking, please contact the National Human Trafficking Resource Center Hotline at   1-888-373-7888, or Text 233733.

To read the National Strategy to Combat Human Trafficking click here.

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

ATLANTA – Twenty-two individuals, residing across the United States, have been charged with wire fraud conspiracy and other related charges in connection with a fraudulent scheme to obtain approximately $3,899,377 in Paycheck Protection Program (PPP) loans.

“These defendants allegedly took advantage of the emergency lending provisions of the Paycheck Protection Program that were intended for business owners suffering the economic effects caused by the COVID-19 pandemic,” said U.S. Attorney Kurt R. Erskine.  “The charges reinforce our resolve to hold accountable those who steal pandemic relief funds and use them for their own personal gain.”

“The Treasury Inspector General for Tax Administration aggressively pursues those who misuse IRS information systems in their efforts to defraud programs afforded to the American people under the CARES Act,” said J. Russell George, the Treasury Inspector General for Tax Administration. “We appreciate the efforts of the Department of Justice in this endeavor.”

According to U.S. Attorney Erskine, the indictments, and other information presented in court: From April 2020 through August 2020, the conspirators in the scheme allegedly submitted, or assisted in the submission of, PPP loan applications on behalf of twenty-two businesses.   In connection with the scheme, defendant Richard Mahee allegedly directed defendant Mark Mason to fabricate documents on behalf of individuals that Mahee identified so they could apply for and receive PPP loans. Mason allegedly communicated with the purported business owners about the loan amount they wanted to receive, and then fabricated tax documents and other supporting documents to submit with the PPP loan application to support that amount.

For their work on the PPP loan applications, Mason and Mahee allegedly received a percentage of the funded loan amount as a “success fee” from each purported business owner. Mason then allegedly began fabricating documents to support fraudulent PPP loan applications for other individuals. These individuals allegedly communicated with Mason about the loan amount they wanted to receive, submitted loan applications with the supporting documents Mason created, and then paid Mason a percentage of the funded loan amount.

Mark Mason, 49, of Atlanta, Georgia, pleaded guilty on January 4, 2022 to one count of wire fraud and one count of money laundering in connection with his involvement in the loans obtained by M&N Enterprise LLC, d/b/a Atlanta Business Capital and Advocate Business Capital LLC.  As part of his guilty plea, Mason admitted his participation in fraudulent conduct totaling between $3.5 million and $9.5 million.

In addition to the charges against Mason, twenty-one other defendants have been charged in eight separate indictments, the last of which was unsealed on January 27, 2022:

• Richard Mahee, 49, of Princeton Junction, New Jersey, is charged with conspiracy to commit wire fraud and wire fraud in connection with his involvement in the loan obtained by his business, ARG Media LLC, and several other businesses’ loans.

• Kristen Alexander, 49, of Denver, Colorado, is charged with conspiracy to commit wire fraud and wire fraud in connection with her involvement in several businesses’ loans.

• David Burge, 67, of Flat Rock, North Carolina, is charged with conspiracy to commit wire fraud and wire fraud in connection with his involvement in the loan obtained by his business, Elemental Comfort, LLC.

• Gina Destito, 59, of Elgin, South Carolina, is charged with conspiracy to commit wire fraud and wire fraud in connection with her involvement in the loan obtained by her business, HomePoppins.com LLC.

• Jim White, 49, of Hammonton, New Jersey, is charged with conspiracy to commit wire fraud and wire fraud in connection with his involvement in the loan obtained by his business, AJW Home Services and Design LLC.

• Morgan Brown, 29, of Nashville, Tennessee, is charged with conspiracy to commit wire fraud and wire fraud in connection with his involvement in the loan obtained by his business, BHG LLC.

• Carlos Stephens, 50, of Gretna, Louisiana, is charged with conspiracy to commit wire fraud and wire fraud in connection with his involvement in the loan obtained by his business, 31 Minds LLC.

• Marvin Lewton, 57, of Atlanta, Georgia, is charged with conspiracy to commit wire fraud and wire fraud in connection with his involvement in the loan obtained by his business, Powers Transport Group LLC, and the loan application filed for his business, DirtySouthHipHop Online Media Group LLC.

• Ion Overman, 52, of Valley Village, California, is charged with conspiracy to commit wire fraud, wire fraud, and money laundering in connection with her involvement in the loan obtained by her business, Bryanston Square, Inc.

• Dale Godboldo, 46, of Valley Village, California, is charged with conspiracy to commit wire fraud, wire fraud, and money laundering in connection with his involvement in the loans obtained by his business, Mahout Star LLC, and the loan obtained by Bryanston Square, Inc.

• Freddy Mitchell, 53, of Asheville, North Carolina, is charged with conspiracy to commit wire fraud and wire fraud in connection with his involvement in the loan obtained by his business, Freddy Mitchell & Associate LLC.

• Timothy Patrick, 54, of Asheville, North Carolina, is charged with conspiracy to commit wire fraud and wire fraud in connection with his involvement in the loan obtained by his business, Integrity Management Group/IMG, and the loan obtained by Freddy Mitchell & Associate LLC.

• Melissa Myrick, 44, of Jacksonville, Florida, is charged with conspiracy to commit wire fraud and wire fraud in connection with her involvement in several businesses’ loans.

• Kirk Codrington, 47, of East Flat Rock, North Carolina, is charged with conspiracy to commit wire fraud, wire fraud, and money laundering in connection with his involvement in the loan obtained by his business, KC Global Enterprises Inc.

• Dereck Clark, 47, of Jacksonville, Florida, is charged with conspiracy to commit wire fraud and wire fraud in connection with his involvement in the loan obtained by his business, Geppetto, d/b/a Dee’s Landscaping LLC.

• Michael Myrick, 39, of Jacksonville, Florida, is charged with conspiracy to commit wire fraud and wire fraud in connection with his involvement in the loan obtained by his business, MYCO Enterprises LLC.

• Darius McCants, 47, of Birmingham, Alabama, is charged with conspiracy to commit wire fraud and wire fraud in connection with his involvement in the loan obtained by his business, BBF Inc.

• Dondre Berry, 41, of Atlanta, Georgia, is charged with conspiracy to commit wire fraud and wire fraud in connection with his involvement in the loan obtained by his business, Houzzit Inc.

• Marcos Soza, 41, of Phoenix, Arizona, is charged with conspiracy to commit wire fraud and wire fraud in connection with his involvement in the loan obtained by his business, Yes Auto Sales Inc.

• Brittany Shearod, 32, of Atlanta, Georgia, is charged with conspiracy to commit wire fraud and wire fraud in connection with her involvement in the loan obtained by her business, Bez Knows Talent LLC.

• Michael McGee, Jr., 32, of Atlanta, Georgia, is charged with conspiracy to commit wire fraud, wire fraud, and money laundering in connection with his involvement in the loan obtained by his business, Arc Michael Logistics LLC.

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

This case is being investigated by the U.S. Treasury Inspector General for Tax Administration.

Assistant U.S. Attorneys Nicholas Hartigan and Lauren Macon are prosecuting the case.

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

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

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

ATLANTA – Slava Dmitriev has been sentenced for access device fraud in connection with his possession and sale of over seventeen hundred stolen identities on the dark web.  Dmitriev, a Canadian citizen, was arrested while on vacation in Greece in September 2020 and extradited to the United States in January 2021.

“This defendant profited off buying and selling people’s stolen identities, including victims in this district,” said U.S. Attorney Kurt R. Erskine.  “As a result of the diligence of federal agents coupled with valuable cooperation of Greek law enforcement, Dmitriev was arrested, extradited, and is now sentenced to federal prison.”

“Dmitriev stole the identities of hard-working citizens of the United States and thought he was safe from prosecution while overseas,” said Phil Wislar, Acting Special Agent in Charge of FBI Atlanta.  “This sentence will serve as a reminder that the FBI will always work diligently with International Law Enforcement partners to bring justice to citizens who have been victimized.”

According to U.S. Attorney Erskine, the charges and other information presented in court:  Dmitriev used the moniker “GoldenAce” to buy and sell stolen identities, including social security numbers, on the darknet marketplace AlphaBay.  From May 2016 through July 2017, Dmitriev sold 1,764 items on AlphaBay for approximately $100,000.  The vast majority of these items were stolen identities, including names, dates of birth, social security numbers, and other personally identifiable information.  There were at least five victims residing in the Northern District of Georgia.

Dmitriev also collaborated with the cyber-extortionist group “the Dark Overlord” (“TDO”), including:

• On June 16, 2016, Dmitriev sent TDO access credentials for a New York dentist that Dmitriev had purchased on a criminal marketplace.  The dentist was subsequently breached and extorted by TDO.

• On July 11, 2016, Dmitriev received a spreadsheet from TDO containing approximately 200,000 stolen identities.

• On May 24, 2017, Dmitriev sold information stolen by TDO that contained the identity of a victim living in La Quinta, California.

On September 8, 2020, Dmitriev was arrested while traveling in Greece.  The following day, Greek authorities executed a search warrant on the residence where Dmitriev was staying and located a computer containing emails discussing the buying and selling of identities and social security numbers, as well as a video about how to perpetrate identify theft.

Slava Dmitriev, 29, of Vaughn, Ontario, Canada has been sentenced to three years in prison to be followed by three years of supervised release.  Dmitriev pleaded guilty on August 30, 2021 to the charge of fraud and related activity in connection with access devices.

This case was investigated by the Federal Bureau of Investigation, with valuable assistance provided by the Hellenic (Greek National) Police, Naxos Public Prosecutor's Office, and the Ministry of Justice Directorate of Special Legal Affairs.

Assistant U.S. Attorneys Michael Herskowitz, Chief of the Cyber and Intellectual Property Crimes Section, and Nathan Kitchens, Chief of the Public Integrity and Special Matters Section, prosecuted the case.  Valuable assistance was also provided by the Department of Justice, Criminal Division, Computer Crimes and Intellectual Property Section and Office of International Affairs. 

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 - Rodriquez Deonte Redding has been sentenced for trafficking cocaine and laundering his drug profits by purchasing luxury cars in his mother’s and grandmother’s names. He faced new charges of wire fraud and the court imposed an additional sentence of one year and three months after the government discovered Redding had fraudulently obtained two Paycheck Protection Program (PPP) loans while on bond for the drug and money laundering charges.

“It’s shocking that, while under indictment for drug trafficking and money laundering, Redding had the audacity to defraud a program meant to help people and businesses struggling for existence during the pandemic in order to fund his luxury shopping sprees,” said U.S. Attorney Kurt R. Erskine. “We are grateful to our federal and state law enforcement partners whose efforts brought this defendant to justice.”

“Hitting drug traffickers in their pockets is a crucial part of dismantling high-level drug distribution networks,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division.  “Their money is their lifeline and without it, their drug distribution activities could not survive. DEA and its law enforcement partners remain committed to making our communities safe.”

“The Fulton County Sheriff’s Office is always pleased to collaborate with our federal justice partners, who share our common objective of preserving the safety and quality of life in Fulton County.  This particular case involved an intense investigation, spanning almost nine years. Side-by-side, deputies and task force members relentlessly pursued irrefutable evidence to bring to justice a lawbreaker, whose actions, inspired by greed, further aggravated the effects of the pandemic for legitimate business owners,” said Fulton County Sheriff Patrick “Pat” Labat.

According to U.S. Attorney Erskine, the charges and other information presented in court: Since at least 2010, Redding has been distributing cocaine in the Atlanta area. Redding was known to pick up and deliver kilograms of cocaine and bags of cash for other members of his drug trafficking operation and was recorded on bank security cameras making cash deposits into various accounts controlled by the members of his group. He also used wire transfers to move money on behalf of his group, and sometimes bought and sold cocaine to his own customers. To disguise and launder some of his cash profits, he purchased a series of luxury cars. As a way to further conceal his unexplained wealth, he convinced his mother and elderly grandmother to purchase the cars in their names, entangling them in his crimes.

Redding was indicted for conspiracy to possess with the intent to distribute cocaine and money laundering by a federal grand jury in September 2018. He was arrested the following month but released on bond while the charges were pending. He pleaded guilty to those charges on June 2, 2021. However, the government soon discovered that he had obtained two PPP loans for $20,833, for a total of $41,666, which he applied for in April and May 2021, shortly before pleading guilty. To receive the loans, Redding claimed to operate a barber and retail business and submitted falsified tax return forms. Then, instead of spending the PPP money on payroll for employees or other business expenses, he spent thousands of dollars at a time on rental cars and shopping, including at Prada, Louis Vuitton, and Saks Fifth Avenue.  Redding spent all of the PPP money in less than one month after receiving it.

Rodriquez Deonte Redding, a/k/a Dreek, 38, of Atlanta, Georgia, has been sentenced to seven years in prison, to be followed by five years of supervised release, and ordered to pay restitution to the PPP lenders and the U.S. Small Business Administration in the amount of $46,666.  Redding was convicted on the drug trafficking and money laundering charges on June 2, 2021, after he pleaded guilty. On January 21, 2022, he pleaded guilty to a criminal information charging wire fraud and was sentenced on both sets of charges in a single hearing.

This case was investigated by the Drug Enforcement Administration with invaluable assistance from the Fulton County Sheriff’s Department.

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

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

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

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

ROME, Ga. – A violent Rome-area drug dealer has been sentenced for possessing a firearm in furtherance of a drug trafficking crime and possession of a firearm by a convicted felon.

“Floyd’s repeated felony and misdemeanor state convictions show his complete disregard for the law,” said U.S. Attorney Kurt R. Erskine.  “This conviction and sentence demonstrate the importance of the Rome Violent Repeat Offender initiative and should serve as a warning that this office will pursue those who put the community at risk by unlawfully using and possessing firearms.”

“Project Safe Neighborhoods has a proven track record of removing violent repeat offenders from the streets of our community,” said ATF Assistant Special Agent in Charge Beau Kolodka.  “This conviction and sentence of nearly a decade in federal prison sends a strong message to Floyd and other violent repeat offenders that their continued possession and usage of firearms will not be tolerated.”

According to U.S. Attorney Erskine, the charges, and other information presented in court: In January 2020, Floyd sold methamphetamine to an ATF confidential informant at a motel that was notorious for drug-trafficking in Rome, Georgia. Following the drug sale, Floyd sold the same informant a pistol he had brought to the deal. The serial number on the pistol had been removed.

Prior to the drug and gun sales that led to his federal criminal charges, Floyd had amassed nearly two dozen felony and misdemeanor convictions in the state system. Although some of those charges involved guns and drugs, many concerned shocking acts of violence against at least eight different women who Floyd admittedly choked, struck, or restrained against their will.

On January 20, 2022, Aubrey Floyd, 45, of Rome, Georgia, was sentenced by U.S. District Judge Michael L. Brown to nine years in prison to be followed by three years of supervised release.  Floyd was convicted of possession of a firearm in furtherance of a drug trafficking crime and possession of a firearm by a convicted felon after he pleaded guilty on October 5, 2021.

This case was investigated by Bureau of Alcohol, Tobacco, Firearms, and Explosives with assistance from the High Intensity Drug Trafficking Areas (HIDTA) Rome Post of Duty, Floyd County Police Department, and Rome 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.

Assistant U.S. Attorneys Theodore S. Hertzberg and Bryan Henderson 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 - Chad Stark has been arrested in Travis County, Texas for allegedly sending threatening election-related communications to government officials on Jan. 5, 2021.

This is the first criminal case brought by the Justice Department’s Election Threats Task Force. Announced by Attorney General Merrick B. Garland and launched by Deputy Attorney General Lisa O. Monaco in late June 2021, the task force is leading the department’s efforts to address threats of violence against election workers, and to ensure that all election workers — whether elected, appointed or volunteer — are able to do their jobs free from threats and intimidation. The task force engages with the election community and state and local law enforcement to assess allegations and reports of threats against election workers, and investigates and prosecutes these matters where appropriate, in partnership with FBI field offices and U.S. Attorneys’ Offices throughout the country as warranted.

“The Justice Department has a responsibility not only to protect the right to vote, but also to protect those who administer our voting systems from violence and illegal threats of violence,” said Attorney General Garland. “The department’s Election Threats Task Force, working with partners across the country, will hold accountable those who violate federal law by using violence or threatening violence to target election workers fulfilling their public duties.”

“The intimidation of those in charge of carrying out free and fair elections in this country is against the law and cannot go unchecked,” said U.S. Attorney Kurt R. Erskine.  “When someone threatens an election official working at any level of the voting process – whether that be an elected office holder or a volunteer poll worker – our democracy is put in jeopardy.  We are grateful to all of those who endeavor to secure our elections and our democracy.  We must protect them all.”

“Today’s arrest confirms the FBI’s commitment in our pursuit of justice against those who choose to threaten violence against anyone participating in our elections,” said FBI Director Christopher Wray. “Election workers striving to protect our right to a fair and democratic process deserve nothing less than the utmost safety and assurance they can accomplish their roles without interference. The FBI will continue to focus on our mission of protecting these individuals and the important work they do, as well as every American’s right to vote.”

According to the indictment, on Jan. 5, 2021, Stark allegedly posted a message to Craigslist entitled, “Georgia Patriots it’s time to kill [Official A] the Chinese agent - $10,000.” The message stated:

Georgia Patriots it’s time for us to take back our state from these Lawless treasonous traitors. It’s time to invoke our Second Amendment right it’s time to put a bullet in the treasonous Chinese [Official A]. Then we work our way down to [Official B] the local and federal corrupt judges. It’s our duty as American Patriots to put an end to the lives of these traitors and take back our country by force we can no longer wait on the corrupt law enforcement in the corrupt courts. If we want our country back we have to exterminate these people. One good loyal Patriot deer hunter in camo and a rifle can send a very clear message to these corrupt governors.. milita up Georgia it’s time to spill blood….  we need to pay a visit to [Official C] and her family as well and put a bullet her behind the ears. Let’s be very clear to our local law enforcement who have stood down and watch BLM antifa destroy our country and kill our citizens yet you’ll step up to stop Patriot supporters you’ll enforce face mask and you’ll close American businesses??? Remember one thing local law enforcement the key word being local…..  we will find you oathbreakers and we’re going to pay your family to visit your mom your dad your brothers and sisters your children your wife…  we’re going to make examples of traitors to our country…  death to you and all you communist friends.

Organized by Deputy Attorney General Lisa O. Monaco, the Election Threats Task Force is led by the Criminal Division’s Public Integrity Section and includes several other entities within the Department of Justice, including the Computer Crime and Intellectual Property Section of the Criminal Division, the Civil Rights Division, and National Security Division, and the FBI, as well as key interagency partners, such as the Department of Homeland Security. For more information regarding the Justice Department’s efforts to combat threats against election workers, read the Deputy Attorney General’s memo.

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

Chad Stark, 54, of Leander, Texas, is charged with one count of communicating interstate threats. Stark was arrested this morning in a law enforcement operation carried out by the FBI.  He is scheduled to make his initial appearance this afternoon at the federal courthouse in Austin, Texas.  An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law

The FBI is investigating this case.

Assistant U.S. Attorney Brent Alan Gray and Deputy Director Sean F. Mulryne of the DOJ Criminal Division’s Public Integrity Section are prosecuting this case. 

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

A Texas man was arrested today in Travis County, Texas, for allegedly sending threatening election-related communications to government officials on Jan. 5, 2021.

Chad Stark, 54, of Leander, was arrested this morning in a law enforcement operation carried out by the FBI. He is scheduled to make his initial appearance this afternoon at the federal courthouse in Austin, Texas.

This is the first criminal case brought by the Justice Department’s Election Threats Task Force. Announced by Attorney General Merrick B. Garland and launched by Deputy Attorney General Lisa O. Monaco in late June 2021, the task force is leading the department’s efforts to address threats of violence against election workers, and to ensure that all election workers — whether elected, appointed or volunteer — are able to do their jobs free from threats and intimidation. The task force engages with the election community and state and local law enforcement to assess allegations and reports of threats against election workers, and investigates and prosecutes these matters where appropriate, in partnership with FBI field offices and U.S. Attorneys’ Offices throughout the country as warranted.

“The Justice Department has a responsibility not only to protect the right to vote, but also to protect those who administer our voting systems from violence and illegal threats of violence,” said Attorney General Garland. “The department’s Election Threats Task Force, working with partners across the country, will hold accountable those who violate federal law by using violence or threatening violence to target election workers fulfilling their public duties.”

“Today’s arrest confirms the FBI’s commitment in our pursuit of justice against those who choose to threaten violence against anyone participating in our elections,” said FBI Director Christopher Wray. “Election workers striving to protect our right to a fair and democratic process deserve nothing less than the utmost safety and assurance they can accomplish their roles without interference. The FBI will continue to focus on our mission of protecting these individuals and the important work they do, as well as every American’s right to vote.”

“The intimidation of those in charge of carrying out free and fair elections in this country is against the law and cannot go unchecked,” said U.S. Attorney Kurt R. Erskine for the Northern District of Georgia. “When someone threatens an election official working at any level of the voting process – whether that be an elected office holder or a volunteer poll worker – our democracy is put in jeopardy. We are grateful to all of those who endeavor to secure our elections and our democracy. We must protect them all.”

According to the indictment, on Jan. 5, 2021, Stark allegedly posted a message to Craigslist entitled, “Georgia Patriots it’s time to kill [Official A] the Chinese agent - $10,000.” The message stated:

Georgia Patriots it’s time for us to take back our state from these Lawless treasonous traitors. It’s time to invoke our Second Amendment right it’s time to put a bullet in the treasonous Chinese [Official A]. Then we work our way down to [Official B] the local and federal corrupt judges. It’s our duty as American Patriots to put an end to the lives of these traitors and take back our country by force we can no longer wait on the corrupt law enforcement in the corrupt courts. If we want our country back we have to exterminate these people. One good loyal Patriot deer hunter in camo and a rifle can send a very clear message to these corrupt governors.. milita up Georgia it’s time to spill blood….  we need to pay a visit to [Official C] and her family as well and put a bullet her behind the ears. Let’s be very clear to our local law enforcement who have stood down and watch BLM antifa destroy our country and kill our citizens yet you’ll step up to stop Patriot supporters you’ll enforce face mask and you’ll close American businesses??? Remember one thing local law enforcement the key word being local…..  we will find you oathbreakers and we’re going to pay your family to visit your mom your dad your brothers and sisters your children your wife…  we’re going to make examples of traitors to our country…  death to you and all you communist friends.

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

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

Stark is charged with one count of communicating interstate threats. If convicted, he faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI’s Atlanta Field Office is investigating the case.

Deputy Director Sean F. Mulryne of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Brent Alan Gray of the U.S. Attorney’s Office for the Northern District of Georgia are prosecuting the case.

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

ATLANTA - The U.S. Attorney's Office for the Northern District of Georgia has entered into an agreement with Sentinel Real Estate Inc., Tina Brooks, and John's Creek, LLC (“Respondents”), a property owner and management company, to resolve allegations of discrimination concerning a Complainant who requested a reasonable accommodation for an emotional support and service animal.

“People with disabilities who need assistance animals to support them with daily activities should be allowed to keep these animals in their homes,” said U.S. Attorney Kurt R. Erskine.  “A person who needs the continuous support of an emotional support animal should not have to face continuous obstacles to simply keep their pet at home.  My office will continue to enforce the Fair Housing Act to combat this type of discrimination.”

This matter was initiated by a complaint filed with the U.S. Department of Housing and Urban Development (“HUD”).  The Complainant, who had a mental health disability that limited his daily activities, required the continuous support of an emotional support animal.  The Complainant alleged that he submitted a reasonable accommodation request asking Respondents to allow his emotional support pet to live with him.  Complainant further alleged that Respondents discriminated against him when they delayed approval of his request for a reasonable accommodation, and then five months later, notified him that his lease would not be renewed.  Complainant alleged that these actions violated the Fair Housing Act and caused him emotional distress. 

As provided in the Agreement, Respondents will implement a reasonable accommodation policy concerning service/emotional support animals which has been approved by the United States.  Respondents will also pay $35,000 to the Complainant's estate, train staff on the Fair Housing Act, and submit periodic reports to the United States Attorney’s office regarding implementation of the Agreement.  

This matter was handled by Assistant U.S. Attorney Aileen Bell Hughes, Special Counsel, 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 – Atlanta real estate agent Eric Hill has been sentenced for his participation in a mortgage fraud scheme that netted more than $21 million in fraudulent mortgage loans.  Many of the fraudulent loans were insured by the Federal Housing Administration (FHA), resulting in over $850,000 in claims being paid for mortgages that have defaulted.  Hill also engaged in a scheme to defraud his employer, a national real estate developer, out of over $480,000 dollars in real estate commissions.

“Eric Hill and his co-conspirators defrauded mortgage loan holders out of millions of dollars, with taxpayers being saddled with much of the loss,” said U.S. Attorney Kurt R. Erskine.  “We will vigorously prosecute those who commit mortgage fraud and enrich themselves at the expense of financial institutions and government programs that insure or guarantee the loans.”

“While it is easy to dismiss financial fraud cases as victimless crimes because of their lack of violence, there is, however, very real victimization to our economy and our taxpayers,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “This sentencing sends the message that the FBI will persistently work to protect American citizens and the real estate market from predators who drag down our economy by deception for their own personal gain.”

“Eric Hill engaged in premeditated criminal acts with the sole purpose of enriching himself, without regard for millions of American homebuyers who rely on federal housing programs to insure their mortgages. His fraudulent actions strike not only at the fiscal integrity of the FHA, but also our neighbors and communities who are victims of these schemes,” said Special Agent in Charge Wyatt Achord with the Department of Housing and Urban Development Office of Inspector General. 

“The Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG) is committed to holding accountable those who commit fraud in the housing and mortgage market and abuse the resources of the Government-Sponsored Enterprises regulated by FHFA.  We are proud to have partnered with HUD-OIG, the FBI, and the U.S. Attorney’s Office for the Northern District of Georgia in this case,” said Edwin S. Bonano, Special Agent-in-Charge, FHFA-OIG, Southeast Region.

According to Acting U.S. Attorney Erskine, the charges and other information presented in court: The defendants participated in a scheme in which homebuyers and real estate agents submitted fraudulent loan applications to induce mortgage lenders to fund mortgages.  Eric Hill and Robert Kelske were real estate agents who represented a major nationwide homebuilder.  Hill and Kelske helped more than 100 homebuyers who were looking to buy a home, but who were unqualified to obtain a mortgage, commit fraud.  The agents instructed the homebuyers as to what type of assets they needed to claim to have in the bank, and what type of employment and income they needed to submit in their mortgage applications.

Hill and Kelske then coordinated with multiple document fabricators, including defendants Fawziyyah Connor and Stephanie Hogan, who altered the homebuyers’ bank statements to inflate their assets and to create bank entries reflecting false direct deposits from an employer selected by the real estate agent.  The document fabricators also generated fake earnings statements that matched the direct deposit entries to make it appear that the homebuyer was employed, and earning income, from a fake employer.  Other participants in the scheme then acted as employment verifiers and responded to phone calls or emails from lenders to falsely verify the homebuyers’ employment.  Defendants Jerod Little, Renee Little, Maurice Lawson, Todd Taylor, Paige McDaniel and Donald Fontenot acted as employment verifiers.  Hill and Kelske coordinated the creation and submission of the false information so that the lies to the lenders were consistent.

In another aspect of the scheme, Hill and Kelske conspired with real estate agents Anthony Richard and Cephus Chapman, who falsely claimed to represent homebuyers as their selling agents in order to receive commissions from the home sales.  In reality, these real estate agents had never even met the homebuyers they claimed to represent.  To avoid detection, the agents often notified closing attorneys that they would not be available for the home closing and sent wire instructions for the receipt of their commissions.  When these purported selling agents received their unearned commissions, they kicked back the majority of the commissions to Hill or Kelske for enabling them to be added to the deal, keeping a small share for their role in the scheme.

Eric Hill, 52, of Tyrone, Georgia, was sentenced to two years, six months in prison to be followed by three years of supervised release.  Hill was convicted on these charges on September 21, 2020, after he pleaded guilty.

In addition to Hill, Defendants Donald Fontenot, Maurice Lawson, Stephanie Hogan, Jerod Little, Renee Little, Paige McDaniel, Fawziyyah Connor, and Anthony Richard have all been sentenced for their roles in the conspiracies. 

• Todd Taylor pled guilty and is scheduled to be sentenced on March 3, 2022.       
• Robert Kelske also pled guilty and is scheduled to be sentenced April 14, 2022.       
• Cephus Chapman was convicted at trial and is scheduled to be sentenced on February 10, 2022.

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

Assistant U.S. Attorneys David A. O'Neal, Alison B. Prout, and former Northern District of Georgia Assistant U.S. Attorney Ryan Huschka 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 - Tyvonne Wiley, Tevin Mitchell, and Torey Starling have been sentenced for committing a series of five armed robberies at retail stores in the metro-Atlanta area in the fall of 2016.  Wiley and Mitchell committed an armed robbery in Texas before traveling to Atlanta.  

“Innocent store clerks and customers were terrorized and lives were endangered by Wiley, Mitchell, and Starling during these armed robberies,” said U.S. Attorney Kurt R. Erskine.  “The violent acts committed by these defendants ended as a result of the collective efforts of our federal, state and local law enforcement partners.”

“The arrest and conviction of this violent multi state robbing crew would not have been possible without the efforts of the Cobb County Police Department and our other local partners,” said ATF Acting Assistant Special Agent in Charge Brent Quinn.  “We are pleased that these violent criminals will be off the streets and in federal prison for the foreseeable future.”

“The Cobb County Police Department remains steadfast in our commitment to keeping our community safe. We are proud of our continued partnership with other local, state, and federal agencies to help us in that regard. This case is another example of the dedication of law enforcement officers and prosecutors to thoroughly investigate and prosecute those criminals who would seek to victimize the public at large,” said Interim Chief O.S. Hamilton, Cobb County Police Department.

According to U.S. Attorney Erskine, the charges and other information presented in court: In September and October of 2016, Wiley, Mitchell, and Starling committed a string of violent armed robberies in Oklahoma, Texas, and then Fulton and Cobb Counties in the metro-Atlanta area. 

Wiley, sometimes accompanied by Mitchell, charged into retail stores with a loaded gun, ordered everyone to lie flat on the ground, and forced the store clerks to empty the registers into a bag while holding a gun to their heads.  Wiley pointed a gun at employees during each robbery and threatened to shoot and kill multiple people.  Starling served as the getaway driver during two of the robberies.

Mitchell, Wiley, and Starling were eventually captured on October 28, 2016 at Starling’s house in Marietta, Georgia.  When Cobb County Police searched the house, they recovered two firearms and two masks used during multiple robberies, as well as some of the cash that the defendants had stolen at gunpoint.  

U.S. District Judge Leigh M. May sentenced each of the defendants to the following:

• Tyvonne Wiley, 25, of Marietta, Georgia, was sentenced on January 5, 2022, to 35 years and one day of imprisonment, to be followed by five years of supervised release and ordered to pay $13,330.29, in restitution to the businesses he robbed.  Wiley was convicted by a jury on May 5, 2021 of conspiracy to commit Hobbs Act robbery, five counts of Hobbs Act robbery, and five counts of brandishing a firearm during a crime of violence.   

• Tevin Mitchell, 27, of Enid, Oklahoma, was sentenced on February 3, 2020 to 11 years, three months of imprisonment, to be followed by two years of supervised release, and ordered to pay $13,330 in restitution.  Mitchell pled guilty to conspiracy to commit Hobbs Act robbery and one count of brandishing a firearm during a crime of violence.

• Torey Starling, 28, of Marietta, Georgia, was sentenced on June 11, 2021 to six years of imprisonment, to be followed by five years of supervised release, and ordered to pay $1,500 in restitution.  Starling pled guilty to two counts of Hobbs Act robbery and one count of brandishing a firearm during a crime of violence. 

Assistant U.S. Attorneys Annalise K. Peters, Ryan K. Buchanan, and Stephanie Gabay-Smith prosecuted the case.

The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Cobb County Police Department, the Marietta Police Department, the Atlanta Police Department, the Sandy Springs Police Department, and the Dallas, Texas Police Department investigated this 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 - Hunter VanPelt has been sentenced to prison for bank fraud related to the Paycheck Protection Program (PPP) when she obtained over $6 million in fraudulent proceeds. 

“The Paycheck Protection Program is meant to help legitimate businesses and their workers through the depths of the pandemic,” said U.S. Attorney Kurt R. Erskine.  “Unfortunately, VanPelt decided to use the program as her personal bank.  A significant federal sentence, such as the one she received, hopefully deters others from following the same path.”

“The FBI will not tolerate anyone who misdirects federal emergency assistance intended for business who actually need it to stay operational,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “This sentence serves as a message that the FBI and our federal partners remain vigilant during this Coronavirus pandemic to make sure funds provided by programs like PPP are used as intended."

“To support small and community banks, the Federal Home Loan banks can accept Paycheck Protection Program (PPP) loans as collateral when making advances to their members,” said Special Agent in Charge Edwin S. Bonano of the Federal Housing Finance Agency, Office of Inspector General. “The FHFA Office of Inspector General is proud to work with our partners in law enforcement to prevent, detect, and deter attempts to perpetrate fraud in the PPP program intended for small business owners and employees under this important part of the CARES Act.”

According to Acting U.S. Attorney Erskine, the charges and other information presented in court: VanPelt, a/k/a Hunter Lauren VanPelt, a/k/a Ellen Corkrum, a/k/a Ellen Yabba Kwame Corkrum, submitted six false and fraudulent PPP loan applications between April 27, 2020 and June 17, 2020. The amounts requested in the six PPP loans totaled $7,943,591.50, of which $6,017,066.50 was disbursed. 

VanPelt owned or controlled the six entities that sought these PPP loans: Georgia Nephrology Physician Associated, United Healthcare Group & Co., Nephrology Network Group LLC, First Corporate International, Corkrum Consolidated Inc., and Kiwi International Inc.  The defendant, who legally changed her name from Ellen Corkrum to Hunter VanPelt in July 2016, submitted the PPP loan applications under both names.  

In each of the PPP loan applications, VanPelt falsely represented the average monthly payroll and the number of employees working for the relevant company.  She also submitted false IRS records, false bank statements, and false payroll reports in connection with those applications.

Federal agents were able to seize approximately $2.1 million of the fraudulent proceeds.

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

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

Hunter VanPelt, a/k/a Hunter Lauren VanPelt, a/k/a Ellen Corkrum, a/k/a Ellen Yabba Kwame Corkrum, 49, of Roswell, Georgia, was sentenced to three years, five months in prison to be followed by five years of supervised release, and ordered to pay restitution in the amount of $7,002,031.50.  She was also ordered to forfeit $2,077,381.  VanPelt was convicted on these charges on August 18, 2021, after she pleaded guilty.

This case was investigated by the Federal Bureau of Investigation and the Federal Housing Finance Agency Office of Inspector General.

Assistant U.S. Attorney Christopher J. Huber, Deputy Chief of the Complex Frauds Section, and Department of Justice Trial Attorney Chris A. Wenger prosecuted the case.

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

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

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

A Georgia woman was sentenced today to 41 months in prison for her scheme to fraudulently obtain more than $7.9 million in Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

According to court documents, Hunter VanPelt, aka Ellen Corkrum, 49, of Roswell, pleaded guilty in August 2021 to bank fraud after submitting six fraudulent PPP loan applications to four different lenders on behalf of Georgia Nephrology Physician Associated, United Healthcare Group & Co., Nephrology Network Group LLC, First Corporate International, Corkrum Consolidated Inc., and Kiwi International Inc, entities she owned or controlled. Through the loan applications, VanPelt sought more than $7.9 million and obtained over $6 million in PPP loan funds.

According to court documents, VanPelt lied about the number of employees and payroll expenses in each of the six PPP loan applications. To support the fraudulent PPP loan applications, VanPelt also submitted fraudulent tax records, bank statements, and payroll reports. VanPelt, who legally changed her name from Ellen Corkrum to Hunter VanPelt in July 2016, submitted three of the PPP loan applications using the name VanPelt and the other three PPP loan applications using the name Corkrum. 

The Justice Department, working with law enforcement partners, seized and recovered approximately $2.1 million of the disbursed PPP funds in this matter. An additional $1.6 million of the disbursed PPP funds were seized by a bank and returned to the lender.

Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; U.S. Attorney Kurt R. Erskine for the Northern District of Georgia; Acting Assistant Director Jay Greenberg of the FBI’s Criminal Investigative Division; Special Agent in Charge Chris Hacker of the FBI’s Atlanta Field Office; and Special Agent in Charge Edwin S. Bonano of the Federal Housing Finance Agency – Office of Inspector General (FHFA-OIG) Southeast Region made the announcement. 

The FBI and FHFA-OIG investigated the case.

Trial Attorney Chris Wenger of the National Rapid Response Strike Force of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Christopher Huber, Deputy Chief of the Complex Frauds Section of the U.S. Attorney’s Office for the Northern District of Georgia, prosecuted the case.

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

In May 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.

ATLANTA - Patrick Shackelford, a federal corrections officer at U.S. Penitentiary Atlanta (“USP Atlanta”), and Patrick Kirkman and Mitchell Arms, both federal inmates, have been arraigned on federal bribery, smuggling, and drug charges arising from an alleged scheme to smuggle narcotics and other contraband into USP Atlanta between approximately June 2018 and February 2019.

“Shackelford allegedly endangered his fellow officers and other inmates through his actions,” said U.S. Attorney Kurt R. Erskine. “When correction officers violate their oaths, they put other prison staff members and inmates at risk of harm.”

“The alleged actions of Shackelford not only fosters criminal activity inside and outside of the prison, but it also insults the integrity of every law enforcement officer who takes an oath to serve and protect the people in their communities,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI will relentlessly pursue any allegations of corruption in these facilities to ensure the safety of both staff and inmates.”

“Shackelford and two inmates allegedly smuggled and distributed drugs and other dangerous contraband in USP Atlanta.  As a correctional officer, Shackelford’s duty was to maintain safety and security in the prison.  His actions, as alleged in the indictment, were antithetical to the oath he swore to uphold,” said James F. Boyersmith, Special Agent in Charge of the Department of Justice Office of the Inspector General Miami Field Office.

According to U.S. Attorney Erskine, the charges, and other information presented in court: From approximately June 2018 through February 2019, Patrick Shackelford, Patrick Kirkman, Mitchell Arms, and others, allegedly conspired to smuggle narcotics, including methamphetamine and marijuana, along with other prohibited items into USP Atlanta, a medium-security federal prison.

During this time, Shackelford was a federal corrections officer and plumbing supervisor at USP Atlanta. With Shackelford’s knowledge and assistance, inmates working under his direction on the “plumbing crew” (identified as Individual-1 and Individual-2 in the Indictment) were allegedly able to smuggle contraband into USP Atlanta from a visitor’s bathroom through a section of USP Atlanta known as “W-ward.”

Shackelford and inmates working for him allegedly created several holes in W-ward and in the visitor’s bathroom through which contraband could be passed into USP Atlanta. Shackelford allegedly helped facilitate the distribution of narcotics and other contraband in USP Atlanta by escorting inmates to W-ward to pick up the contraband on nearly a weekly basis.

Shackelford further helped the inmates by allowing them to store contraband within the maintenance office, including hiding it in the ceiling above his office. In exchange for permitting inmates on the plumbing crew to smuggle in contraband and distribute it to other inmates, Shackelford allegedly received $5,000 in cash and pain pills, and inmates completed his assigned plumbing duties and other work.

Kirkman and Arms were among the inmates at USP Atlanta allegedly receiving the contraband, including narcotics, through this scheme. While the operation was ongoing, Kirkman paid Individual-1 thousands of dollars via a mobile payment app (Cash App) to smuggle in the contraband. Arms also communicated via text message with Individual-1 about the “packages” that were being smuggled through the visitor’s bathroom into USP Atlanta. 

Patrick Shackelford, 47, of Senoia, Georgia, Patrick Kirkman, 35, of Tuscaloosa, Alabama,, and Mitchell Arms, 41, of Columbia, Tennessee, were arraigned before U.S Magistrate Judge Justin S. Anand, on December 16, 2021, on a nine-count indictment charging them with bribery; possessing and smuggling of prohibited objects into a federal prison, including cellular phones, marijuana and methamphetamine; conspiracy to commit bribery; conspiracy to possess and smuggle prohibited objects into a federal prison; and conspiracy to possess with intent to distribute controlled substances. They were indicted by a federal grand jury on November 16, 2021.

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 Department of Justice, Office of Inspector General.

Assistant U.S. Attorney Alex R. Sistla is prosecuting the case.

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

ATLANTA – U.S. Attorney Kurt R. Erskine announced the appointment of eight new Assistant U.S. Attorneys (AUSA) who will immediately employ their talents to support the Northern District of Georgia’s (NDGA) mission to enforce the law and defend the interests of the citizens that we serve in this district.

“We are fortunate to have such talented and dedicated professionals join us to represent the United States,” said U.S. Attorney Kurt R. Erskine.  “We are committed to excellence in our service to this country as well as the citizens of the Northern District of Georgia and welcome these outstanding Assistant U.S. Attorneys to the office.”

The following AUSAs joined our office or have assumed new roles:

• Mary Jane Stewart, a career public servant, has returned to the United States Attorney’s Office as Senior Trial Counsel in the Criminal Division, after having served over four years as the First Assistant U.S. Attorney in the Middle District of Tennessee, and then as the Acting U.S. Attorney for the district.  Hired as an AUSA in 1983 in Atlanta, she has handled hundreds of criminal cases and tried scores of jury trials.  During her tenure, she also served as the Deputy Chief of the Drug Division, Senior Litigation Counsel, and the Criminal Division’s Training Coordinator.  From 2002 until her departure in October 2017, she and former AUSA William R. Toliver trained over 100 newly hired AUSAs to be federal prosecutors.  She holds three degrees from the University of Georgia:  a BA in French (1975), a MA in Political Science (1977), and her Juris Doctor (1980).

• Larry Sommerfeld has rejoined the office as Chief of Appeals and Legal Advice. Larry returns to the office from a partnership at Alston & Bird where he was a member of the firm’s Litigation and Trial Practice Group and its Privacy, Cyber & Data Strategy Team. Larry advised clients on their most sensitive cybersecurity matters including significant computer network intrusions, cyber preparedness, and data privacy compliance. He counseled clients on technology and data strategy matters, spanning the life cycle of their digital data across the globe. Previously, Larry served as an AUSA in the Economic Crimes section and led the office’s Cybercrimes unit before being promoted to Appellate Chief. Larry was a member of the trial team that convicted the individuals who assassinated DeKalb County Sheriff-elect Derwin Brown on the orders of the outgoing Sheriff, and argued the case on appeal. He also led the successful investigation and prosecution of one of the most sophisticated and coordinated cyber intrusions ever perpetrated, involving the withdrawal within 12 hours of $9.4 million from more than 2,100 ATM terminals in at least 280 cities worldwide, bringing to justice defendants from four continents. Larry is an MIT graduate and member of the Order of the Coif from the University of Virginia School of Law. He clerked for judges on both the U.S. District Court for the Northern District of Georgia, the Eleventh Circuit U.S. Court of Appeals, and has practiced at firms in New York City and Silicon Valley, California.

• AUSA Jeffrey Davis also returns to our office from the Vermont U.S. Attorney’s Office and will serve as Special Counsel in the Criminal Division.  Jeff previously served as the Chief of the Public Integrity and Special Matters Section in the NDGA U.S. Attorney’s Office.  Before beginning his federal service, Jeff was a vice president in the anti-money laundering division of an international investment bank. After graduating from law school, he served as an assistant district attorney in the New York County District Attorney’s Office.  Jeff graduated from Connecticut College and Emory University School of Law with honors. Jeff also received a professional certificate in forensic accounting from New York University.

• AUSA Aileen Bell Hughes will serve as Special Counsel in the Civil Division.  Aileen currently leads the Civil Rights Unit in the Civil Division and represents the United States in civil rights matters involving disability, housing, education, and other civil rights statutes.  After serving as a civil rights attorney in Connecticut, Hughes joined the Department of Justice in Washington D.C. in 1998 as a Senior Trial Attorney in the Civil Division.  She later transferred to the Civil Rights Division as a Senior Trial Attorney and led several high-profile civil rights investigations involving people with mental illness and intellectual disabilities.  In 2003, Aileen joined the U.S. Attorney’s Office for the Northern District of Georgia where she defended various federal agencies in civil defensive matters.  In 2010, Aileen was appointed the Civil Rights Coordinator in the Civil Division of the office.  She developed, coordinated, and implemented a new civil rights practice in the NDGA, and was successful in helping to create a Civil Rights Unit in the U.S. Attorney’s Office.  Aileen received her B.A. cum laude from the University of Connecticut, and her J.D. from Georgetown University Law Center. 

• Sharon Lim will serve as an AUSA in the Civil Division.  Lim served as an associate in the Atlanta office of Jackson Lewis P.C., representing employers in federal and state courts and before administrative agencies on a variety of employment-related matters, including collective and class action wage and hour disputes.  Prior to that, Sharon served as a law clerk for the Hon. Catherine M. Salinas, U.S. Magistrate Judge for the Northern District of Georgia.  Sharon worked in Hawaii for nearly five years before moving to Georgia, first as a law clerk to two state court judges on Maui, and then as an associate in a Honolulu law firm devoted exclusively to the representation of management in labor and employment law matters.  Sharon received her B.A. cum laude from the University of California, Irvine, and her J.D. from Notre Dame Law School.

• Natasha Cooper will serve as an AUSA in the Criminal Division.  Cooper served as an Associate in the Complex Commercial Litigation Group of McGuireWoods LLP, where she handled both financial services litigation and regulatory matters. Natasha also served as Regulatory Counsel to Edward Jones where she handled state securities, SEC and FINRA matters for the broker-dealer. She has also been active serving as the past Chair of the American Bar Association, Young Lawyers Division Litigation Committee. In 2019, the National Black Lawyers named Natasha as a Top 40 under 40 Lawyer. Natasha received her law degree from the Emory University School of Law, where she was a Kessler-Edison Scholar.  She received her B.A., summa cum laude, from the State University of New York at Albany Honors College.

• Norman Barnett will serve as an AUSA in the Criminal Division.  Barnett served as a Senior Assistant District Attorney in the Cobb County District Attorney’s Office, where he prosecuted a variety of matters, including homicides, serious violent felonies, and organized crime cases. He also served as an Assistant District Attorney in the Douglas County District Attorney’s Office. Prior to his prosecution career, Norman worked as an associate at Swift, Currie, McGee and Hiers, LLP and the Law Offices of W. Calvin Smith, II, P.C. In 2016 and 2018, Norman served as the Musical Director, keyboardist, and band director for the Atlanta Bar Association’s Bard Show.  Additionally, he served on the planning committee for the State Bar of Georgia’s High School Mock Trial program and recently served as the program’s chair.  Norman earned his Juris Doctor from the University of Georgia School of Law, where he served as a Notes Editor for the Journal of Intellectual Property Law. He also earned his Bachelor of Arts in English with a music minor from the University of Georgia.

• Vivieon Kelly Jones joins the office from the Department of Justice in Washington, where she served as a trial attorney in the Office of General Counsel for the U.S. Trustee Program, promoting the integrity and efficiency of the bankruptcy system.  Vivieon entered duty at the Department in 2009 as a trial attorney for the U.S. Trustee Program in the Northern District of Georgia.  Prior to her tenure with the Department, Vivieon worked as an associate at Troutman Pepper where she focused her practice in the areas of bankruptcy reorganizations and complex litigation.  Vivieon earned her law degree from William & Mary Law School, and her B.A. from the College of William & Mary.  She also served as a clerk for Hon. E. Stephen Derby of the Bankruptcy Court in the District of Maryland.  Vivieon is a member of the Civil Division and currently serves as Parliamentarian for DOJABA, the Department's Association of Black Attorneys. 

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 – An Atlanta-area gynecologist, two pharmacists, and ten other individual accomplices or pill “sponsors” have been indicted, charged with the alleged illegal sale and distribution of controlled substances to addicts and drug dealers. 

“When medical professionals allegedly abuse their credentials to divert dangerous prescriptions pills to the streets for personal profit, the toll on our communities is devastating,” said U.S. Attorney Kurt R. Erskine.  “The opioid crisis is far from over, and we continue our work with our federal, state and local law enforcement partners to pursue those who traffic in these dangerous drugs.”

“While in the midst of this country’s prescription opioid epidemic, removing and ultimately eliminating physicians who recklessly overprescribe pharmaceutical pills (particularly prescribed opioids) for non-medical reasons, is an important part of DEA’s mission,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “This pill peddling gynecologist allegedly distributed large quantities of opiate-based pills to scores of drug-seeking patients. He, and his accomplices, will no longer be able to commit such unlawful acts thanks to spirited law enforcement cooperation.”

“This indictment should serve as a warning to any medical professional considering operating a pill mill,” said James E. Dorsey, Special Agent in Charge IRS Criminal Investigation, Atlanta Field Office. “IRS-CI remains committed to working with our law enforcement partners to bring those seeking to illegally enrich themselves at the expense of our communities, to justice.”

According to U.S. Attorney Erskine, the charges, and other information presented in court:  Anthony Mills, M.D., was a licensed physician with a specialty listed with the Georgia Composite Medical Board of Gynecology.  Mills, however, did not maintain a gynecology practice at any address listed with Medical Board or the DEA.  Instead, he allegedly operated a pill mill out of his Atlanta-area home, where he allegedly sold prescriptions to addicts and drug-dealing sponsors in exchange for cash payments. 

Despite Mills’s specialization in gynecology, many of the “patients” to whom Mills provided prescriptions were male.  A large number of the prescriptions allegedly were provided to sponsors, including defendants Thomika Riley, Brittany Tinker, Natalie Jackson, Keandre Bates, Jeana Alston, Javon Hamilton, Chafulumisa Lisbon, Marcena Jordan, and Travious Polain, in the names of third parties that Mills had never evaluated, and in many cases had never met.  Some of the prescriptions that Mills issued to sponsors were for individuals whose identities had been stolen, who were incarcerated at the time of the prescription, or who were deceased at the time of the prescription.  Mills also allegedly allowed Rogerick Smith and Natalie Jackson, who were not medical professionals, to sell prescriptions they wrote using Mills’ name and DEA registration number.

The indictment also alleges that Raphael Ogunsusi operated two pharmacies – Evansmill Pharmacy and Retox Pharmacy – for the purpose of unlawfully dispensing and distributing controlled substances.  Ogunsusi, as well as pharmacist Moses Kirigwi, dispensed a large number of prescriptions issued by Mills and others, that were presented by sponsors in the names of third parties.  Ogunsusi and Kirigwi dispensed these prescriptions despite the fact that they were in excess of medically appropriate dosages and combinations and despite obvious signs that the pills were being abused, sold, or otherwise diverted.  Most of the controlled substance prescriptions dispensed at Evansmill Pharmacy and Retox Pharmacy were written by Mills, including prescriptions filled by sponsors in the names of individuals were not present, and in many cases, whose identities had been stolen.  Ogunsusi and Kirigwi often charged over $900 to fill a single prescription for oxycodone and $500 to fill a prescription of Percocet, well above the market value for legitimate prescriptions. 

To disguise the significantly inflated prices that he charged for the illegal controlled substance prescriptions, Ogunsusi allegedly falsified the pricing information on his pharmacy computers to give the appearance that he had charged market prices for the controlled substances.  Ogunsusi and Kirigwi also required sponsors to purchase additional non-controlled substances that the sponsors neither wanted or needed, which further maximized Ogunsusi’s profits for the illegal dispensing and distributing of controlled substances.

The following have been arrested and arraigned on federal drug charges for their respective roles in operating “pill mills:” 

• Anthony Mills, 55, of Atlanta, Georgia,
• Raphael Ogunsusi, 69, of Conyers, Georgia,
• Moses Kirigwi, 29, of Brookhaven, Georgia,
• Thomika Riley, a/k/a TJ, 48, of McDonough, Georgia,
• Brittany Tinker, 28, of Lithonia, Georgia,
• Natalie Jackson, 37, of Stone Mountain, Georgia,
• Rogerick Smith, a/k/a Fasho, 43, of Douglasville, Georgia,
• Keandre Bates, 29, of Decatur, Georgia,
• Chafulumisa Lisbon, a/k/a Chafu, 31, of Atlanta, Georgia,
• Javon Hamilton, 32, of Bluffton, South Carolina,
• Marcena Jordan, 28, of Forrest Park, Georgia.

Raphael Ogunsusi was also indicted individually on money laundering charges.  Defendants Jeana Alston, a/k/a Tina, 41, of Atlanta, Georgia, and Travious Polain, a/k/a Magic, 30, of Decatur, Georgia, who are also charged in the indictment, remain fugitives.

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 Drug Enforcement Administration, and the Internal Revenue Service Criminal Investigation.

Assistant U.S. Attorneys David A. O’Neal and Laurel Boatright Milam are prosecuting the case.

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

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

ATLANTA - A federal jury has convicted Antonio Jamar Laster of conspiring and attempting to traffic methamphetamine sourced from a cartel-connected stash house hidden in plain sight in the north Atlanta suburbs.

“Methamphetamine abuse ravages our society by destroying lives and fueling violence,” said U.S. Attorney Kurt R. Erskine. “We are grateful to our federal and state law enforcement partners who strive to eliminate this scourge by targeting the transnational trafficking organizations that profit from poisoning our community.”

“Stopping traffickers like Laster, who flood our streets with their poison, not only prevents the flow of dangerous drugs into our communities, it also prevents the crime and violence associated with drug activity,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama.

“Months of investigation led to a large amount of dangerous drugs taken off the street. The GBI works collaboratively with federal, state, and local law enforcement to identify and eliminate gang activity and make communities safer,” said Vic Reynolds, Director, Georgia Bureau of Investigation.

According to U.S. Attorney Erskine, the charges and other information presented in court: On October 9, 2020, Antonio Jamar Laster drove to a shopping center in Woodstock, Georgia to purchase three kilograms of methamphetamine from couriers working at the behest of the notoriously violent Cártel de Jalisco Nueva Generación (“CJNG”) Mexican drug cartel. The couriers, after replenishing their drug supply from a single-family home in Marietta that was being utilized as a drug distribution hub and storage location, met Laster. Laster had concealed $21,100 in cash inside a Wendy’s fast-food bag to purchase the narcotics.

Agents from Homeland Security Investigations (HSI) and the Georgia Bureau of Investigation (GBI) were actively monitoring the Marietta stash house and awaiting the issuance of a search warrant when they saw the couriers depart for the shopping center to meet Laster. Some agents followed the couriers while others stayed behind to search the home.

At the shopping center, agents interdicted the methamphetamine and arrested Laster, the two couriers, and a third cartel associate before any drugs or money exchanged hands. A criminal history check revealed that Laster was a member of the Gangster Disciples who served a prison term in Tennessee for aggravated robbery. At the stash house, agents recovered more than 100 kilograms of crystal methamphetamine and several pounds of liquid methamphetamine.

The three men arrested with Laster pleaded guilty on March 9, 2021 to conspiring to possess methamphetamine with intent to distribute. Laster elected to proceed to trial. On December 16, 2021, a jury found Laster guilty of conspiracy to possess a controlled substance with intent to distribute and attempted possession of a controlled substance with intent to distribute.

Sentencing for Antonio Jamar Laster, 31, of Nashville, Tennessee, is scheduled for March 16, 2022, at 2:00 p.m. before U.S. District Judge Steven D. Grimberg.

This case is being investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Georgia Bureau of Investigation with assistance from the Cherokee Multi-Agency Narcotics Squad.

Assistant U.S. Attorneys Theodore S. Hertzberg and Noah R. Schechtman are prosecuting the case.

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

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

ATLANTA - Jonathan Blane Allred, who was previously convicted of possession of child pornography and used his email and Dropbox accounts to download hundreds of sexually explicit images of children, has pleaded guilty to possession of child pornography. Images and videos of children as young as six years old, engaged in sexually explicit conduct, were among the items confiscated.

“It is particularly disturbing when a defendant who has already served a significant federal sentence for possession of child pornography returns to society only to again engage in this kind of violation of children,” said U.S. Attorney Kurt R. Erskine.  “Possessing child pornography victimizes and abuses the children in the images each time they are disseminated and viewed. This office remains committed to protecting our children from those that seek to exploit them.”

“Clearly, Allred has not gotten the message that this behavior will not be tolerated and that HSI and its law enforcement partners will continue to hold him accountable for actions,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama.

“Protecting our children from these types of offenders will always be a priority. We appreciate the partnership we have with the National Center for Missing and Exploited Children and are pleased Allred is off the streets of Cherokee County,” said Cherokee County Sheriff Frank Reynolds.

According to U.S. Attorney Erskine, the charges and other information presented in court: In March 2021, The National Center for Missing and Exploited Children (NCMEC) received a report about a Dropbox account user that had uploaded six files depicting children under the age of 12 engaged in sexually explicit conduct. That information was provided to Cherokee County Sheriff’s Office.

Cherokee County deputies then executed search warrants for the Dropbox and an associated email account and determined that the accounts belonged to Allred and were being accessed from Allred's home. Contained in Allred's Dropbox and email accounts were nearly 600 images, videos, and gifs of children engaged in sexually explicit conduct.

On June 14, 2021, Cherokee County deputies arrested Allred and executed a search warrant for the contents of his laptop and phone. In addition to the hundreds of images found in his accounts, Allred had also stored child pornography on the hard drive of his computer.

Allred was convicted for possession of child pornography in March 2010, in the Northern District of Georgia.  He began serving a term of supervised release in August 2019. Allred also faces revocation of his supervised release as a result of possessing child pornography.

Jonathan Blane Allred, 49, of Waleska, Georgia, pleaded guilty to possession of child pornography on December 16, 2021. Sentencing is scheduled for March 24, 2022, at 3:00 p.m. before U.S. District Judge Eleanor L. Ross.

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

Assistant U.S. Attorney Tiffany R. Dillingham 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.

ATLANTA - Robert Ward, who filed a false Form 7200 with the IRS, has pleaded guilty to a charge of filing a false claim with the United States.

“Unfortunately, criminals continue to take advantage of the broad COVID relief measures available to assist in this time of crisis,” said U.S. Attorney Kurt R. Erskine.  “We are committed to the prosecution of those who seek to enrich themselves by defrauding the government.”

“This COVID pandemic has brought out the best in some people, while bringing out the worst in others,” said IRS-Criminal Investigation Special Agent in Charge James E. Dorsey. “This case is one of many examples of the pandemic bringing out the worst in people.   IRS-CI remains committed to investigating and recommending prosecution of anyone attempting to exploit COVID relief programs.”

According to U.S. Attorney Erskine, the charges and other information presented in court: Ward filed a fraudulent Form 7200 with the IRS claiming advance payment of employer credits of $627,326.  He falsely claimed to have a business with 50 employees and to have paid over $450,000 in quarterly wages.  In reality, his business was a sole proprietorship, and he was not entitled to the advance payment of credits. 

When used legitimately, a Form 7200 allows an employer to request an advance payment of employer credits under the Families First Coronavirus Response Act (FFCRA).  The FFCRA provides small and midsize employers refundable tax credits that reimburse them, dollar-for-dollar, for the cost of providing paid sick and family leave wages to their employees for leave related to COVID-19.

Robert Ward, 35, of Hampton, Georgia, is scheduled to be sentenced on March 24, 2022, at 2:00 p.m., before U.S. District Judge Eleanor L. Ross.

This case is being investigated by the Internal Revenue Service Criminal 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 - Michael Stephen Autry has been sentenced for his role in organizing online groups where men posted child pornography.  Autry created a group on an internet site that encouraged participants to “share pictures and videos of all things taboo,” including incest.

“It shocks the conscience when someone finds pleasure in looking at photos and videos showing children being sexually abused,” said U.S. Attorney Kurt R. Erskine. “It is even more disturbing when someone like Autry gathers men together in online groups for the purpose of sharing these horrific images. We will continue to work with our law enforcement partners to ensure that these persons receive their full measure of justice.”

“The victimization of a child doesn’t end when that child’s pornographic images are recorded. Every time an individual like Autry possesses and shares those images amongst the group he created, those children are victimized over, and over,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI will always make it a top priority to protect our most vulnerable citizens and put away anyone who would seek to bring them harm.”   

According to U.S. Attorney Erskine, the charges and other information presented in court: in early June 2017, Autry created a group on Kik, an internet site where persons can communicate and post photographs and videos. He named the group “Taboo Train 2.0,” and he wrote that the purpose of the group was to gather together people so that they could “share pics and videos of all things taboo…. incest, young, your own family members, etc. to discuss taboo fantasies and real life stories.”

Autry invited an FBI agent who was posing in an undercover capacity to become a member, which allowed the FBI to record all the communications and postings and to identify the members of the group. In all, more than 50 persons were members of Taboo Train 2.0 at some point, although the majority did not post any photos or videos. Many of the members also lived outside the United States.

After a few weeks, the members of Taboo Train 2.0 began to show a greater sexual interest in boys than girls. So, on June 24, 2017, Autry created a new Kik group that he named “The Common Interest.” He invited the undercover FBI agent to be a member along with dozens of other persons. He posted an introductory message where he wrote that “the subject matter is all things taboo… specifically incest, teens, and taboo relationships (young/old, teacher/student, etc.).” He encouraged members to “share your stories, pics, videos, fantasies, etc!” More than 60 persons were members at various times.

On November 5, 2017, and again on December 7, 2017, Autry was added to two other Kik groups where the members shared countless images and videos of children being sexually abused. In both instances, he invited the undercover FBI agent to become a member of the group.

Michael Stephen Autry, 42, of Brownwood, Texas, was sentenced to 12 years, six months in prison to be followed by lifetime supervised release.  Autry was convicted on these charges on June 29, 2021, after he pleaded guilty to distribution of child pornography. To date, 11 other persons have been charged with child pornography offenses because of their membership in these Kik groups.

This case was investigated by the Federal Bureau of Investigation.

Assistant U.S. Attorneys Paul R. Jones and L. Skye Davis prosecuted the case.

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

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

ATLANTA – The Department of Justice announced today that it has awarded more than $17.5 million in grants to support the Project Safe Neighborhoods (PSN) Program. Funding will support efforts across the country to address violent crime, including the gun violence that is often at its core. In the State of Georgia, the Criminal Justice Coordinating Council was awarded funding totaling $532,348.

The Bureau of Justice Assistance (BJA), part of the department’s Office of Justice Programs (OJP), will administer the 88 grant awards, which are being made to designated fiscal agents to support local PSN projects that work in partnership with U.S. Attorneys’ Offices.

“This latest Project Safe Neighborhoods grant is critical to addressing the violent crime threatening cities and towns all across our country,” said Deputy Attorney General Lisa O. Monaco. “Ensuring the safety of all Americans is the highest priority for the Department of Justice, but when it comes to violent crime, there is not a one-size-fits-all solution. We have to work closely with local public safety agencies as well as community organizations to craft individual strategies unique to each community’s needs. Programs like Project Safe Neighborhoods and the funding it provides allow us to do just that.”

“These awards represent a significant commitment in the fight against violent crime and recognition of the hard work being done by law enforcement and community partners to combat gun violence,” said Kurt R. Erskine, U.S. Attorney for the Northern District of Georgia.  “The Northern District of Georgia’s Project Safe Neighborhoods strategy focuses on prosecuting repeat violent offenders as well as supporting evidence-based programs that curb recidivism among adult and youthful offenders.”

"These grants are one element of a multi-prong approach to address violence in communities in Georgia,” said Peter D. Leary. U.S. Attorney for the Middle District of Georgia.  “By offering financial support for innovative crime solutions, Project Safe Neighborhoods puts the power in the hands of local communities to fight violent crime.”

“The Project Safe Neighborhoods program plays a vital role in the Southern District as we collaborate with our law enforcement partners to fight violent crime and take firearms away from criminals,” said David H. Estes, U.S. Attorney  for the Southern District of Georgia. “The funding from this PSN grant will assist our largest cities with strategies and equipment for making their communities safer.”

The Criminal Justice Coordinating Council in Georgia received awards:

• Northern District of Georgia   $297,151
• Middle District of Georgia      $130,025
• Southern District of Georgia   $105,172

“Investing in our communities, supporting victims and building a justice system that both keeps people safe and earns their trust – these are mutually reinforcing goals that stand at the heart of Project Safe Neighborhoods,” said Principal Deputy Assistant Attorney General Amy L. Solomon for OJP. “The Office of Justice Programs is pleased to join with our U.S. Attorneys’ Offices, and with jurisdictions across the country, as we work together to meet the challenges of crime and violence and achieve our shared aspirations of public safety and community trust.”

In May 2021, Attorney General Merrick B. Garland announced a new effort to reduce violent crime, including the gun violence that is often at its core. Integral to that effort was the reinvigoration of PSN, a two-decade old, evidence-based and community-oriented program focused on reducing violent crime. The updated PSN approach, outlined in the department’s Comprehensive Strategy for Reducing Violent Crime issued by Deputy Attorney General Monaco, is guided by four key principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence, setting focused and strategic enforcement priorities and measuring the results of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.

This fall, U.S. Attorney’s Offices across the country have enhanced their violent crime reduction efforts to ensure alignment with the department’s comprehensive violent crime reduction strategy. U.S. Attorneys’ Offices have engaged in outreach to law enforcement and other agencies and organizations serving communities to identify the most significant drivers of violence in their districts. Working together with a broad coalition of stakeholders, the U.S. Attorneys’ Offices are addressing the most pressing violent crime issues in their district to make our neighborhoods safer for all.

PSN programs are led by U.S. Attorneys’ Offices in collaboration with local public safety agencies, community stakeholders and other agencies and organizations that work to reduce violent crime.

For a list of all grantees, please visit: https://www.ojp.gov/sites/g/files/xyckuh241/files/media/document/FY21-Project-Safe-Neighborhoods-Awards.pdf  

Information about these and other FY 2021 grant awards from the Office of Justice Programs can be found online at the OJP Grant Awards Page.

The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at  www.ojp.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 – Dr. Jeffrey M. Gallups (founder, owner, medical director and past-CEO of Milton Hall Surgical Associates (“MHSA”) a/k/a The Ear, Nose & Throat Institute) and Entellus Medical have agreed to pay approximately $3 million and $1.2 million, respectively, to resolve allegations that they violated the False Claims Act by entering into unlawful kickback arrangements.

“Gallups abused his position by accepting unlawful kickbacks in exchange for directing MHSA physicians – often over their objections – to order devices or administer procedures and tests that were not medically necessary,” said U.S. Attorney Kurt Erskine.  “In his role, Gallups was uniquely situated to benefit his community.  Instead, he chose to put his personal financial interests above the interests of his colleagues and MHSA’s patients.”

“The Anti-Kickback Statute prohibits individuals who participate in federal health care programs from knowingly and willfully offering, paying or receiving any remuneration in order to encourage recommendation of any item covered under a federal health care program,” stated Derrick L. Jackson, Special Agent in Charge with the Department of Health and Human Services Office of Inspector General. “We will continue to pursue providers who engage in kickbacks or bill for baseless procedures.”

“The False Claims Act settlement in this case will be a deterrent to those who selfishly profit from dishonest medical treatment rather than upholding their oath as a health care provider to do what is best for their patients,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI and our partners will always make it a priority to protect companies and individuals from anyone who would seek to profit from false claims.”     

"Georgia's Medicaid program relies upon the independent judgement of medical professionals to make appropriate treatment decisions for their patients. Financial relationships that undercut this independence diminish public trust and unnecessarily drive up health care costs for our citizens. We remain dedicated to working with our state and federal partners to maintain the integrity of public programs and protect taxpayers dollars,” said Georgia Attorney General Chris Carr

“Our trusted medical professionals who engage in kickback schemes to maximize profits undermine the integrity of our Department of Defense health care system,” stated Special Agent in Charge Cynthia A. Bruce, Department of Defense (DoD) Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office.  “DCIS and our investigative partners will continue to protect DoD personnel and their dependents by holding companies accountable that engage in unlawful activities.”

Between 2014 and 2018, Gallups was a non-practicing physician, and devoted his time to acting as the CEO and medical director of MHSA, which employed approximately 12-18 physicians in various locations throughout North Georgia. The government alleges that Gallups controlled these physicians in his capacity as CEO and medical director of MHSA and directed these physicians, in exchange for the kickbacks described herein, to (1) utilize sinuplasty related medical devises exclusively from Entellus; as well as to (2) order toxicology and genetic testing from NextHealth.

First, with respect to Entellus and Gallups, it is alleged that Entellus provided Gallups several forms of remuneration, including cash payments and all-expense paid trips, in return for Gallups requiring MHSA physicians to use Entellus’s sinuplasty medical devices and increase the number of sinuplasty procedures conducted on MHSA patients.

Second, with respect to Gallups and a Dallas, Texas based medical laboratory called NextHeath, LLC (“NextHealth”), it is alleged that NextHealth made payments to Gallups in the form of supposed “commissions” in return for Gallups requiring MHSA physicians to order medical tests from NextHealth, regardless of medical necessity, and despite objections from MHSA physicians that such tests were not medically necessary.

Gallups/Entellus Kick-Back Scheme

Entellus is a medical device company that manufactures, inter-alia, products used to perform sinus surgery. The government alleges that Entellus provided kickbacks to Gallups to induce him to direct MHSA physicians to (1) utilize Entellus sinuplasty medical devices (as opposed to those of Entellus’ competitors); and (2) increase the volume sinus surgeries performed at MHSA, thereby increasing the number of supplies ordered from Entellus. On December 7, 2017, Entellus was acquired by Stryker Corporation (“Stryker”), and Stryker’s compliance personnel flagged and elected not to renew the consulting arrangement that existed between Entellus and Gallups. On September 21, 2000, Stryker agreed to pay $1.2 million to resolve claims arising from the alleged Gallups/Entellus kickback arrangement. 

Gallups/NextHealth Kick-Back Scheme

The government alleges that, in or around January 2016, Gallups entered into a kickback arrangement with a now defunct medical testing laboratory called NextHealth, pursuant to which Gallups directed MHSA physicians to order toxicology and genetic tests from NextHealth, despite physician objections that the tests were not medically necessary. In return, NextHealth paid Gallups 50% of the revenue generated from such tests as “commissions.” The government contends the scheme ended in or around February 2017 due to increasing complaints from MHSA physicians that the tests were not medically necessary.

The civil settlement resolves claims brought under the qui tam or whistleblower provisions of the False Claims Act by Myron Jones, M.D., who is a former physician-employee of MHSA. The False Claims Act permits private parties to sue for false claims on behalf of the United States and to share in any recovery. The qui tam case is captioned United States ex rel. Myron Jones, M.D., et al. v. Milton Hall Surgical Associates, LLC d/b/a The ENT Institute and a/k/a the Ear, Nose & Throat Institute, Jeffrey M. Gallups, M.D., et al., Civil Action. No. 1:17-cv-2472 (NDGA).   Jones will receive approximately $614,000.00 from the settlement.

The claims resolved by this settlement are allegations only and there has been no determination of liability. With respect to the allegations concerning NextHealth, LLC, on October 21, 2021, before the U.S. District Court for the Northern District of Georgia, Gallups pleaded guilty to health care fraud in case number 1:21-cr-00370.

This matter was investigated by the U.S. Attorney’s Office for the Northern District of Georgia, the Georgia Medicaid Fraud Control Unit, the U.S. Department of Health and Human Services – Office of Inspector General, the Federal Bureau of Investigations and the Defense Criminal Investigative Service of the U.S. Department of Defense – Office of Inspector General.

The civil settlement was reached by Assistant U.S Attorney Paris A. Wynn and Georgia Assistant Attorney General James 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 home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://wwws.justice.gov/usao-ndga.

ATLANTA – Brandon Ridge has been sentenced for obtaining a $160,000 fraudulent loan from the Paycheck Protection Program (“PPP”), a portion of which he then used to purchase a Range Rover.

“Ridge thought he could unjustly enrich himself by defrauding a program designed to support struggling businesses during an international pandemic,” said U.S. Attorney Kurt R. Erskine. “His sentence should serve as a warning to others that there are serious consequences for engaging in this type of fraud.”

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

“It’s unfortunate that criminals continue to abuse the funds set aside to aid those impacted by the COVID-19 Pandemic. IRS-CI will continue to use our financial expertise to identify fraud, trace the funds, and bring the criminals to justice,” said IRS-Criminal Investigation Special Agent in Charge James E. Dorsey. “Hopefully the continued prosecution of individuals seeking to abuse funds intended to help those most impacted by the pandemic, will serve as a deterrent to others.”

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

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

Ridge submitted two false PPP loan applications for his business, “Barking Rose Solutions,” requesting loan amounts totaling $449,917.50. The applications contained materially false information, including fabricated banking statements that inflated the company’s deposits and expenditures to make it appear that the company qualified for PPP relief. One of these loan applications was accepted and the defendant received $162,467.50 in fraudulent loan proceeds.  The defendant then used the proceeds for his own personal benefit, which included purchasing a Range Rover. 

Brandon Ridge, 37, of Decatur, Georgia, was sentenced to serve two years of incarceration, to be followed by three years of supervised release, and to forfeit his interest in the Range Rover and over $100,000 seized from his bank accounts. Ridge previously entered a plea of guilty to bank fraud. As part of his plea agreement, he agreed to forfeit his interest in the Range Rover as well as over $100,000 seized from his bank accounts. 

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

Assistant U.S. Attorneys Thomas J. Krepp and Tiffany R. Dillingham prosecuted the case.

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

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

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

ATLANTA – Durrell Tyler and DeShawn Johnson have been sentenced for access device fraud and aggravated identity theft related to their use of stolen identities to open accounts with credit card companies and various retailers.

“Criminals using dark net markets to steal identities wreak havoc on the lives of individuals and compromise the financial security of victims,” said U.S. Attorney Kurt R. Erskine. “While law enforcement is focused on investigating and prosecuting these individuals, citizens are reminded to be vigilant with their personal identifiable information.”

“These defendants motivated by greed targeted our most vulnerable population by seeking the identities of older individuals to violate their personal and financial well-being,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division. “Postal Inspectors and our law enforcement partners will continue to work every day to protect our elderly neighbors from financial exploitation.”

“Those who operate in the shadows will be exposed to the light of justice,” said U.S. Secret Service Special Agent in Charge Steven R. Baisel. “Deplorable felons who purposely prey on elderly victims are among the worst criminals there are. We will work tirelessly to pull them from their hiding places.”

According to U.S. Attorney Erskine, the charges, and other information presented in court: Durrell Tyler and DeShawn Johnson purchased personal identifiable information (PII) from dark net markets and used the information to open credit accounts using the victims’ information. They then forwarded the phone lines, mailing addresses, and the emails of their victims to their control. This allowed Tyler and Johnson to impersonate victims with creditors and prevented victims from learning about the fraud.

Law enforcement began investigating Tyler after discovering that he attempted to forward the phone number of an elderly couple in Georgia who had been murdered. Search warrants at multiple homes in the Atlanta area used by Tyler and Johnson revealed the scope of their fraud. Law enforcement found mail for victims, fraudulent driver’s licenses in the name of elderly victims with Tyler’s picture, and PII for dozens of victims listed in phones, email accounts, and a handwritten notebook. Tyler and Johnson were each held accountable for more than $130,000 in actual and intended loss suffered by more than 75 victims around the United States. Targets of their scheme included elderly men and women who were repeat victims of identity theft.

The defendants have been sentenced by U.S. District Judge Steve C. Jones as follows:

• Durrell Tyler, 29, of Atlanta, Georgia, was sentenced to three years, ten months in prison for access device fraud, to be followed by two consecutive years imprisonment for aggravated identity theft.  He was also sentenced to serve three years of supervised release and ordered to pay restitution in the amount of $108,397.55.  Tyler was convicted on these charges on May 14, 2021, after he pleaded guilty.

• DeShawn Johnson, 30, of Atlanta, Georgia, was sentenced to one year, six months in prison for access device fraud, to be followed by two consecutive years imprisonment for aggravated identity theft.  He was also sentenced to serve three years of supervised release and ordered to pay restitution in the amount of $66,097.55.  Johnson was convicted on these charges on September 9, 2021, after he pleaded guilty.

The case was investigated by the U.S. Postal Inspection Service and U.S. Secret Service.

Assistant U.S. Attorneys Nicholas Hartigan, Tiffany Dillingham, and former Assistant U.S. Attorney Jolee Porter 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 - Dontavious Matthews and Quentin Truley have been sentenced for committing an armed robbery of a cell phone store in Brookhaven, Georgia. Truley was also sentenced for committing an armed robbery of a cell phone store in Lithonia, Georgia, 11 days later. 

“These defendants showed no regard for the lives of the customers and employees they held at gunpoint while committing these armed robberies,” said U.S. Attorney Kurt R. Erskine.  “Due to the strong partnership of federal and local agencies through the Project Safe Neighborhood Program, these defendants were convicted of these violent crimes and will now serve significant sentences in federal prison.”

“Violent conduct like the armed robberies in this case will not be tolerated in our community,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI is proud to work with our local law enforcement partners in helping to convict these offenders at the federal level, where they face stiffer penalties and no opportunity for parole.”

“The successful prosecution of this case is a direct reflection of the hard work and dedication of the Peace Officers and Public Servants involved during the investigation,” stated Brookhaven Police Chief Gary Yandura.  “We are very happy with the outcome of the court proceedings and hope that the victims in these cases find some peace knowing the offenders are off the streets.”

“The arrests and sentencing on this case is a great example of how collaboration between federal and local partners help solve cases and bring them to successful conclusions,” said Chief Mirtha V. Ramos, DeKalb County Police Department.  “By working together, we can continue to make our communities safer one arrest at a time.”

According to U.S. Attorney Erskine, the charges and other information presented in court: On December 17, 2017, Matthews and Truley entered a cellular phone store in Brookhaven.  A few minutes later, Truley pointed a gun at store employees while Matthews ordered everyone to the ground.  Matthews then forced the store manager to go to the back room and open the safe.  Truley held the employees and customers at gunpoint while Matthews emptied the safe of cell phones, and both defendants fled the scene.  The robbery was captured on surveillance cameras and Truley and Matthews left their fingerprints at the store. 

On December 28, 2017, Truley and an unknown accomplice entered a cellular phone store in Lithonia, brandished firearms, and ordered employees and customers to the ground.  Truley then forced an employee to the back of the store to obtain cell phones from the safe.  Unbeknownst to Truley, the store manager placed a tracker phone with the other stolen phones, which later led police to Truley hiding in some bushes at a nearby apartment complex. 

Dontavious Matthews, 31, of Decatur, Georgia, has been sentenced to nine years, four months in prison to be followed by three years of supervised release and ordered to pay restitution in the amount of $19,321.  Matthews was found guilty by a jury of one count of Hobbs Act armed robbery on August 27, 2021.

Quentin Truley, 27, of Decatur, Georgia, was sentenced to 19 years and three months in prison to be followed by five years of supervised release and ordered to pay restitution in the amount of $40,400.91.  Truley pleaded guilty on August 3, 2021, to two counts of Hobbs Act armed robbery and two counts of possession of a firearm during a crime of violence. 

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.

This case was investigated by the Federal Bureau of Investigation, with valuable assistance provided by the City of Brookhaven Police Department and the DeKalb County Police Department.

Assistant U.S. Attorneys Leanne Marek and Michael Herskowitz 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 - Ivie Shevon Sajere pled guilty to a money laundering 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,” said U.S. Attorney Kurt R. Erskine. “The defendant thought she could avoid detection because the scheme was so complex.  She was wrong.  Through the coordination with multiple federal law enforcement agencies, we were able to identify Sajere and bring her to justice.”

“Sajere and her co-conspirators, brazenly used the stolen personal information of innocent people and abused SSA’s online application process to defraud the government of nearly a million dollars,” said Gail S. Ennis, Inspector General for the Social Security Administration. “This guilty plea demonstrates the commitment we have to ensuring the integrity of SSA’s eServices and to work with our law enforcement partners to hold perpetrators accountable for their crimes. I appreciate the coordinated efforts of the Department of Homeland Security Office of the Inspector General, and U.S. Postal Investigation Services, and other law enforcement partners, in working with us to dismantle this conspiracy.”

“Funds fraudulently obtained from FEMA and the SSA deprive deserving recipients and communities truly in need,” said Dr. Joseph V. Cuffari, Inspector General for DHS’s Office of Inspector General. “This outcome and guilty plea speaks to the strength of the successful law enforcement partnerships between the Department of Homeland Security Office of Inspector General, the Department of Justice, the Social Security Administration and the U.S. Postal Investigation Services.”

“In partnership with our law enforcement partners, we combined our investigative and legal resources to stop this fraudulent activity that affected numerous identity theft victims along with two government agencies that provide aid to those in need,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division. “Postal Inspectors are dedicated to protecting the mail from all those who seek to use the mail system for illegal purposes and this case should serve as warning to anyone considering similar conduct that those actions will result in criminal consequences.”

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 US citizens, participated in a money laundering scheme that defrauded nearly a million dollars from SSA and FEMA.

The scheme involved unknown individuals filing applications for Social Security retirement benefits and/or 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 criminals had a better chance of getting the applications approved.  Specifically, 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 was credited to 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.

Sajere pleaded guilty to one count of violating Title 18, United States Code, Section 1956(h) (conspiracy to commit money laundering.)  She also agreed to pay $949,616.40 in restitution to SSA and FEMA. 

Sentencing for Ivie Shevon Sajere, 37, of Suwanee, Georgia, is scheduled for March 8, 2022, at 10:30 a.m., before U.S. District Judge Timothy C. Batten Sr.

This case is being investigated by the Social Security Administration Office of the Inspector General, Department of Homeland Security Office of the Inspector General, and U.S. Postal Investigation Services.

Special Assistant U.S. Attorney Diane C. Schulman, and Assistant U.S. Attorney Samir Kaushal 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 - Kevin Rumph, Jr., has been sentenced to prison for stealing medical supplies from the U.S. Department of Veteran Affairs.

“It is disappointing when someone entrusted to help care for our veterans instead steals from them,” said U.S. Attorney Kurt R. Erskine.  “As a veteran, Rumph should have been a compassionate servant, not a thief.”

“This defendant was held accountable for his role in a long-term fraud scheme in which he used his position at VA to selfishly enrich himself,” said Special Agent in Charge David Spilker of the Department of Veterans Affairs Office of Inspector General’s Southeast Field Office. “The VA OIG will remain vigilant alongside our law enforcement partners ensuring that VA employees who would steal funds intended for the care of our nation’s veterans are investigated and prosecuted.”

According to U.S. Attorney Erskine, the charges and other information presented in court: Kevin Rumph, Jr., a U.S. Air Force veteran, was employed as a Purchasing Agent by the U.S. Department of Veteran Affairs (VA) and had worked there since 2012.  He worked in the VA’s Prosthetic Department at its Community Based Outpatient Clinic (CBOC) located in Fort McPherson, Atlanta, Georgia.

Rumph’s job duties included receiving prosthetic request forms and prescriptions from physicians, therapists, patients, and patient representatives, and reviewing those forms for proper documentation and justification of the items, services, and durable medical equipment being requested. Rumph prepared purchase orders for a wide variety of prosthetic and sensory aids devices, medical supplies, and durable medical equipment and coordinated the delivery of medical equipment and supplies through contracted providers utilizing his VA-issued purchase card.

In addition to his legitimate purchases for veterans’ health care needs, Rumph used his government-issued purchase card to make unauthorized purchases of Continuous Positive Airway Pressure (CPAP) supplies from a supplier in Alabama.  He then stole and sold the CPAP supplies to a vendor located in Ohio.  CPAP supplies are medical products used to treat obstructive sleep apnea.

Between 2013 to 2021, Rumph made hundreds of unauthorized CPAP supply purchases costing the VA in excess of $1.9 million.

Rumph, 41, of Fairburn, Georgia, was sentenced to two years, three months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $2,041,733.62.  Rumph was convicted on these charges on August 16, 2021, after he pleaded guilty.

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

Assistant U.S. Attorney Christopher J. Huber, Deputy Chief of the Complex Frauds Section, prosecuted the case.

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

ROME, Ga. - Damon Thomas Young, a/k/a Morgan Sylvia, has been sentenced for his fraud scheme to steal heavy equipment worth nearly $3 million from various dealers, while serving a 20-year state sentence as an inmate with the Georgia Department of Corrections.

“Young schemed to steal millions of dollars’ worth of heavy equipment while serving a sentence for assaulting a police officer,” said U.S. Attorney Kurt R. Erskine.  “Inmates should not think that the crimes they commit from prison will go unpunished just because they are already incarcerated.  As in this case, inmates who commit crimes from behind bars face additional federal prison time to be served after their state sentences end.”

“Young committed an elaborate fraud scheme continuing his criminal activity even while behind bars, and for that he will be further punished by serving time in the federal prison system without the opportunity for parole,” said Alex Santiago, Acting Special Agent in Charge of FBI Atlanta. “The FBI would like to thank our state and local partners for all their hard work and persistence that will keep this criminal behind bars for a significant amount of time.”

“People committing crimes, even from behind bars, should not expect to escape accountability. The GBI continues to collaborate with federal and local partners to make sure these types of investigations lead to successful prosecution ,” said Vic Reynolds, Director, Georgia Bureau of Investigation.

“The use of contraband cell phones by inmates as a tool to continue carrying out crimes from behind the walls of our facilities will not be tolerated,” said Georgia Department of Corrections Commissioner Timothy C. Ward.  “We are grateful to our law enforcement partners on every level for ensuring justice is served on this individual for his role in jeopardizing both the safe and secure operations of our facilities and the safety of the public.”

“We are very pleased that this matter has been brought to a successful conclusion through the combined efforts of our partners in state and federal government, and ourselves. This was a massive and complex investigation that required the best efforts of all the officers, agents and prosecutors assigned to the case. My congratulations to each investigative agency and to the U.S. Attorney's Office for all of their hard work,” Gordon County Sheriff Mitch Ralston.

According to U.S. Attorney Erskine, the charges and other information presented in court:  Since 2010, Damon Thomas Young has been an inmate with the Georgia Department of Corrections, incarcerated first at Georgia State Prison in Reidsville, Georgia, and then at Hays State Prison in Trion, Georgia.  Young is serving a 20-year state sentence for aggravated assault on a police officer and a 10-year sentence for violation of the Georgia Racketeer Influenced and Corrupt Organizations (RICO) Act.  Young also has prior convictions for theft by taking, impersonating a public officer, arson, forgery, burglary and arson, and theft by deception.  His maximum possible release date from state prison is June 16, 2030.

While serving his state prison sentence, in 2019, Young used a contraband cell phone to defraud, or attempt to defraud, multiple heavy equipment dealers out of equipment worth millions of dollars.  Using the alias Morgan Sylvia and pretending to be a purchasing officer with AbbVie, a real biopharmaceutical company, Young ordered heavy construction equipment that he had delivered in and around Ranger, Georgia, where he and his family lived.  He then put the equipment up for sale to buyers on Craigslist.

To carry out his fraud, Young called heavy equipment dealers, posed as Morgan Sylvia, a fictitious purchasing officer, and stated that he wanted to order some heavy construction equipment.  Using the Sylvia alias, Young misrepresented that AbbVie needed the equipment because it was building a facility in Ranger.  He ordered heavy equipment, such as wheel loaders, skid steer loaders, an excavator, a horizontal grinder, and dump trucks.  Young communicated with the equipment dealers by phone, text, and email from prison.  He fraudulently completed credit applications, purchase orders, sales contracts, and insurance documents and emailed them to the dealers as part of the scheme.  He also emailed a fraudulent AbbVie corporate resolution document, purportedly signed by actual corporate officers of the company, but in truth he had forged the signatures on the document. 

As part of his scheme, Young fraudulently ordered equipment worth over $2.8 million from six different equipment dealers.  Most of the dealers caught the fraud before shipment, but Young was successful in acquiring four pieces of equipment worth over $500,000.  He sold some of the stolen equipment online and used the proceeds to purchase two Chevrolet work trucks.  The Gordon County Sheriff’s Office has since recovered all of the stolen equipment that was shipped.

Young, 39, of Ranger, Georgia, has been sentenced to seven years in prison, to be followed by three years of supervised release, and ordered to pay restitution in the amount of $30,000 to the online purchaser of the stolen equipment.  The Court ordered that five years of the federal sentence must run consecutively to the state sentence that Young is currently serving.  Young was convicted of wire fraud and aggravated identity theft on August 27, 2021, after he pleaded guilty.

This case is being investigated by the Federal Bureau of Investigation, Gordon County Sheriff’s Office, Georgia Bureau of Investigation, and the Georgia Department of Corrections Criminal Investigations Division.

Assistant U.S. Attorney Stephen H. McClain, Chief of the Complex Frauds Section, prosecuted the case.

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

ATLANTA - Tiyari Collins and Farah Collins, husband and wife, have pleaded guilty to defrauding the U.S. Small Business Administration (“SBA”) by obtaining approximately $1.9 million in fraudulent loans from the Paycheck Protection Program (“PPP”) and Economic Impact Disaster Loan (“EIDL”) program. Tiyari Collins, who owned and operated Collins Financial Services Group, a tax-preparation business based in metro Atlanta, also pleaded guilty to filing thousands of fraudulent tax returns resulting in a loss of at least $3.8 million to the IRS.

“The fraud here is outrageous,” said U.S. Attorney Kurt R. Erskine.  “Tiyrai Collins defrauded the federal government amid a historic pandemic.  It is unconscionable that he and his wife stole from government programs designed to support small businesses and their employees struggling as result of COVD-19 pandemic.”

“These guilty pleas are a victory for the American taxpayers,” said IRS-Criminal Investigation Special Agent in Charge James E. Dorsey. “It’s unfortunate that criminals continue to abuse the funds set aside to aid those impacted by the COVID-19 Pandemic. IRS-CI will continue to use our financial expertise to identify fraud, trace the funds, and bring the criminals to justice.”

“The Collins family greedily lined their pockets with stolen government funds intended to provide relief to small businesses and employees during the COVID-19 pandemic,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Their actions affect every tax paying citizen, in particular those who need help most. The FBI will make every effort to ensure federal funds are used as intended.”

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

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

In addition to the PPP, Congress also expanded the SBA’s EIDL Program to provide small businesses with low-interest loans of up to $2 million prior to in or about May 2020 and up to $150,000 beginning in or about May 2020. The purpose of these loans was to provide vital economic support to help overcome the loss of revenue small businesses are experiencing due to COVID-19. Applicants seeking a loan under the EIDL program were also permitted to request and receive an advance of approximately $1,000 per employee, for an amount up to $10,000, which the SBA has generally provided while the loan application was pending.

Tiyari Collins submitted applications for six fraudulent PPP loans and five fraudulent EIDL loans between approximately May 1, 2020 and June 30, 2020, totaling more than $1.9 million. Farah Collins was involved in submitting four of these fraudulent applications and received approximately $365,000 in the fraudulently distributed PPP and EIDL funds. 

In the fraudulent PPP and EIDL loan applications, the Collinses falsely represented, among other things, the company’s average monthly payrolls, the number of employees working for the relevant company, and the company’s revenues. The Collinses also submitted false tax returns in connection with several of these applications. Tiyari Collins paid another individual to prepare the fraudulent payroll reports that were submitted as part of the applications. For example, Tiyari Collins asked this individual to prepare a fraudulent payroll report showing total yearly wages to be approximately $850,000 for Collins Financial Services Group, LLC (“CFSG”) and to make up employees if necessary.

The Collinses owned or controlled the following entities that sought these fraudulent PPP and EIDL loans: CFSG

• Collins Investment Services Group, LLC
• Collins Platinum Car Services, LLC
• Fab Financial Business Solutions
• Tax Dragon Professional Network LLC
• T&F Investment Group
• Tiyari Collins Agency, LLC

The Collinses used the fraudulently obtained funds for unauthorized expenditures, including spending hundreds of thousands of dollars on luxury goods, personal credit card bills, and office furnishings.

After the fraud was discovered, federal agents were able to seize approximately $588,900 of the fraudulent proceeds.

Separately, Tiyari Collins, through his tax preparation business, CFSG, filed and caused to be filed thousands of fraudulent federal tax returns between approximately January 2015 and April 2020, resulting in over $3.8 million in losses to the IRS. Tiyari Collins inflated the refunds for his clients by, among other ways, fraudulently claiming they qualified for certain Form 3800 Business Credits and by filing fraudulent Schedule Cs to reduce his clients’ taxable income. CFSG’s clients never authorized Tiyari Collins to include this materially false information in their federal tax returns. Agents from the Internal Revenue Service Criminal Investigation were able to detect and confirm this massive tax fraud, in part, with information provided by the IRS’s Scheme Detection Center, which had identified a pattern of suspicious returns that were connected to Tiyari Collins and his tax preparation businesses, by conducting an undercover operation, and with information obtained as a result of executing a federal search warrant at CFSG’s place of business in June 2020.

Tiyari Collins pleaded guilty to one count of conspiracy to commit wire fraud and one count of aiding and assisting in the preparation of a false tax return. Farah Collins pleaded guilty to one count of conspiracy to commit wire fraud.

Sentencing for Tiyari Collins, 38, and Farah Collins, 41, both of Atlanta, Georgia, is scheduled for March 15, 2022, at 9:30 a.m. and 11:30 a.m., respectively, before U.S. District Judge William M. Ray II

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

Assistant U.S. Attorneys Alex R. Sistla and Thomas J. Krepp are prosecuting the case.

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

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

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

ATLANTA – PruittHealth, Inc. and affiliated entities (“Pruitt”) have agreed to pay $4.2 million to resolve allegations that they submitted claims for home health services that were not covered by the Medicare and Medicaid programs, and that they failed to refund overpayments that they had received from Medicare and Medicaid in a timely manner.

“The Medicare and Medicaid programs depend on providers to submit only those claims that are eligible for reimbursement and to promptly notify the programs if they receive payments to which they are not entitled,” said U.S. Attorney Kurt R. Erskine. “Healthcare providers must not place their own financial well-being ahead of their duties under the Medicare and Medicaid programs.”

“When health care entities seek to boost their profits through improper billing, they undermine the trust taxpayers extend to the health care industry,” said Special Agent in Charge Derrick L. Jackson.  “This settlement demonstrates the commitment that our agency and its law enforcement partners have to pursuing those who seek to improperly enrich themselves at the expense of federal health care programs.”

“When funds from programs like Medicare and Medicaid are not used as intended, taxpayers and people who are entitled to those funds suffer,” said Chris Hacker, 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.”

Home health services consist of skilled care provided to homebound beneficiaries for the treatment of acute illnesses and injuries.  As a result of widespread fraud in the submission of home health claims, Medicare and Medicaid began requiring referring physicians to certify in writing, after a face-to-face visit with the beneficiary, that the beneficiary was homebound and needed the skilled care.  Medicare and Medicaid also require the physician to devise and sign a plan of care for the beneficiary.

The Government alleges that from January 1, 2011 through June 30, 2012, Pruitt knowingly submitted claims to Medicare and Medicaid for home health services that were not eligible for reimbursement because, among other things, they did not have the required face-to-face certifications or plans of care, and they did not document the beneficiary’s homebound status or need for the home health services.  The Government further alleges that Pruitt learned that it had received payments for home health services to which it was not entitled, but failed to disclose its receipt of the overpayments, or refund the overpayments to Medicare and Medicaid in a timely manner.

In reaching its settlement with Pruitt, the Government took into account documents produced by Pruitt indicating that Pruitt subsequently took steps to improve its compliance with the home health requirements of the Medicare and Medicaid programs, including the retention of an outside consultant in January 2013 to conduct an audit of its home health claims, the implementation of a pre-bill review of home health claims between February 2013 and August of 2013, and the implementation of quarterly audits of its home health claims (with more frequent audits as needed) beginning in September 2013 through the present.  Pruitt voluntarily produced the results of its 2013 audit to the Government during the investigation. Although the Government has taken these steps into consideration, this is not an indication or concession as to the sufficiency of these compliance measures.

This settlement resolves a lawsuit originally filed in the U.S. District Court for the Northern District of Georgia by Tina Peery (the Relator) under the qui tam or whistleblower provisions of the False Claims Act:  United States ex rel. Tina Peery v. UHS-Pruitt Holdings, Inc., et al., No. 1:14-cv-01016-AT.  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 will receive over $700,000.00 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, The Federal Bureau of Investigation, and the Georgia Medicaid Fraud Control Unit.

The civil settlement was reached by Assistant U.S. Attorneys Neeli Ben-David and Anthony DeCinque, as well as Georgia 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 - Hakim Amal Archible has been sentenced for filing false liens against federal government officials, including former IRS Commissioner John Koskinen and former U.S. Treasury Secretary Jacob Lew.

“Harassing federal officials through the filing of false liens is serious criminal conduct,” said U.S. Attorney Kurt R. Erskine.  “Congress enacted the retaliatory lien statute to address the problem of frivolous retaliatory liens, too often used by tax defiers and sovereign citizens to obstruct the tax laws and harass government employees.”

“TIGTA’s statutory mission includes investigating individuals who interfere with the lawful collection of taxes by filing frivolous liens against public officials,” said J. Russell George, the Treasury Inspector General for Tax Administration.  “Attempts to interfere with IRS employees engaged in the performance of their official duties will be aggressively pursued.  We appreciate the efforts of the U.S. Attorney’s Office in working with TIGTA to protect the integrity of Federal tax administration.”

According to U.S. Attorney Erskine, the charges and other information presented in court: In 2014 and 2015, while imprisoned in Henry County, Georgia, for unrelated crimes, Archible filed or attempted to file false liens against the real and personal property of government officials.  Specifically, the testimony showed that on October 22, 2014, the IRS issued a letter to Archible informing him that he would be subject to a $5,000 penalty for taking a frivolous position in his 2013 tax return.  Archible, aided and abetted by others, filed false UCC lien documents in the Fayette County Clerk’s Office that named IRS Commissioner John Koskinen as debtor and listed himself as the secured party creditor.  In the documents, Archible indicated that Koskinen was responsible for the $5,000 tax penalty.  He also had the UCC filing, and other IRS forms, mailed directly to the IRS.

On December 9, 2014, Archible, aided and abetted by others, filed UCC lien documents naming former U.S. Treasury Secretary Jacob Lew as the debtor and himself as the secured party creditor.  While the collateral identified for the lien is nonsensical, the description of the subject real estate included, among other things, a $100 billion chargeback order.  On August 5, 2015, Archible, aided and abetted by others, filed another false UCC lien against Jacob Lew, which named Secretary Lew as the debtor and Archible as the secured party.  The collateral for the lien included, among other things, a $10 billion registered security.

In addition to the false liens filed against the federal governmental officials, Archible also filed false liens against local officials in Georgia, including the Chief Judge of Henry County Superior Court, and the former Clerk of Henry County Superior Court.

Witnesses testified that the lien filings are publicly available and can be accessed through an internet search.  A court order is required to remove the liens from the public portal.  The victims testified that they were concerned that these liens could affect their credit or their property and that they felt threatened and harassed by the conduct.

On July 2, 2021, a jury found Archible guilty of three counts of filing and attempting to file false and retaliatory liens against the real and personal property of certain employees of the federal government, in violation of 18 U.S.C. § 1521, and one count of obstructing the due administration of the IRS, in violation of 26 U.S.C. § 7212.

Hakim Amal Archible, 38, of Hampton, Georgia, was sentenced November 16, 2021, by U.S. District Judge Thomas W. Thrash, Jr., to eight years, nine months in prison to be followed by three years of supervised release.

This case was investigated by the U.S. Treasury Inspector General for Tax Administration.

Assistant U.S. Attorneys Angela Adams and 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 – Vikas Mehta, Walter Valdivia, Pradip Parikh, Jaime Salas, Alpesh Patel, and Darash Shah have been indicted for wire fraud conspiracy, wire fraud, money laundering conspiracy, and money laundering.

“This case involves an alleged scheme to defraud victims — many of whom are elderly — out of their hard-earned savings,” said U.S. Attorney Kurt R. Erskine.  “It is a particularly egregious type of fraud that is becoming an all-too-common occurrence. It involves dishonest individuals around the world, including in the United States, scaring good people with lies and then cheating them out of their money.”

“These indictments send a solid message that my office will continue to pursue perpetrators of these vicious Social Security-related imposter scams designed to target and harm vulnerable people, including the elderly,” said Gail S. Ennis, Inspector General for the Social Security Administration. “I thank the Transnational Elder Fraud Strike Force, Federal Bureau of Investigation, U.S. Secret Service, Department of Homeland Security, and the Treasury Inspector General for Tax Administration criminal investigators for their significant efforts; additionally, I thank the many law enforcement agencies for their substantial contributions to this major investigation and the U.S. Attorney’s Office for prosecuting this case.”

According to U.S. Attorney Erskine, the charges and other information presented in court: The defendants allegedly participated in a conspiracy to defraud victims in the United States, many of whom are elderly. The conspiracy began with either robocall recordings purporting to be from a government agency or with emails purporting to be from legitimate companies. The robocall recordings and email messages provided callback numbers. When individuals called those numbers, they were connected to alleged scammers — some of whom were located in India. During these telephone calls, the scammer pretended either to work for the United States government or to represent a company.

When the scammer pretended to work for a government agency, the scammer would tell the victim that they were in some type of trouble. Oftentimes, they pretended to be a Social Security Administration employee, claiming that the victim’s Social Security Number was compromised in some way.  The scammer would then tell the victim that they needed to pay money immediately, or, if they did not, they would be arrested. The scammer sometimes used actual Social Security Administration employees’ names to appear legitimate.

In those instances when the scammer claimed to work for a legitimate company, they reported that the victim was entitled to a company refund. The scammer often convinced the victim to download computer software that, unbeknownst to the victim, allowed the scammer to remotely access the computer. From there, the scammer manipulated the victim’s bank accounts to make it appear that, when attempting to refund the victim his or her money, the scammer “accidentally” refunded too much, and thus, the victim now owed a “debt” to the company. If the victim did not pay back this perceived debt, they would face certain consequences.

Once the scammer on the telephone scared the victims, the scammer would instruct the victim on how to pay money. Sometimes the scammer directed the victim to withdraw cash, package the cash in shipping boxes, and deliver the package as instructed. Other times, the individual on the phone would tell the victim to obtain gift cards and provide the redemption code on the back of the card. Oftentimes, the individual on the phone would tell the victim to wire money to a particular bank account; withdraw their money for cashier’s checks made payable to a specific company; or deposit cash directly into a specific company’s bank account.

To effect the alleged wire fraud and money laundering conspiracy, the named defendants — all of whom reside in the United States — allegedly created companies with various Secretaries of State offices and then opened bank accounts in the company’s names. These companies, however, did little to no legitimate business.  Instead, their purpose was to receive and transfer victim funds. And it was into these bank accounts that the scammer on the phone instructed the victim to deposit their money.

Once the defendants had received the victims’ money, they allegedly laundered the fraud proceeds through their various accounts. The defendants and their companies are listed below:

• Vikas Mehta, 48, of Cliffside Park, New Jersey, created two companies: Snoopy Trust LLC and MVJ Holdings LLC.
• Walter Valdivia, 69, of Boca Raton, Florida, created Achieve Capital Group LLC and ACG Accounts Inc.
• Pradip Parikh, 63, of Valley Stream, New York, formed JDM Management Inc.
• Jaime Salas, 27, of Acworth, Georgia, formed Salas Construction LLC.
• Alpesh Patel, 37 of Louisa, Virginia, created Seven Points Agency LLC.
• Darash Shah, 22 of Boston, Massachusetts, formed Turtle Dove Holdings LLC.

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.

Assistant U.S. Attorney J. Elizabeth McBath is prosecuting this case.

The Social Security Administration Office of Inspector General (SSA OIG) is investigating the case, with the assistance of: Federal Bureau of Investigation agents in Atlanta, New York, New Jersey, Florida and Virginia; U.S. Secret Service agents in Cleveland and Headquarters; Department of Homeland Security agents in Miami; and Treasury Inspector General for Tax Administration agents in Chicago.

The U.S. Attorney’s Office and SSA-OIG would like to thank the following law enforcement agencies for their work in this case:

• Wood-Ridge Police Department (New Jersey);
• Lincoln Police Department (Lincoln, Nebraska);
• Conway Police Department (Conway, New Hampshire);
• Loveland Police Department (Loveland, Colorado);
• Stockton Police Department (Stockton, California);
• Ferndale Police Department (Ferndale, Michigan);
• City of Maplewood Police Department (Maplewood, Minnesota);
• Stafford County Sheriff’s Office (Stafford, Virginia);
• Pennington County Sheriff’s Office (Rapid City, South Dakota);
• New York Police Department (NYPD) (New York City, New York);
• Nassau County Police Department (Garden City, New York);
• Lake County Sheriff’s Office (Tavares, Florida);
• Polk County Sheriff’s Office (Benton, Tennessee);
• Smyrna Police Department (Smyrna, Georgia);
• Conway Police Department (Conway, Arkansas);
• Polk County Sheriff’s Office (Des Moines, Iowa);
• Columbus Police Department (Columbus, Ohio);
• Cobb County Sheriff’s Office (Marietta, Georgia);
• North Richland Hills Police Department (North Richland, Texas); &
• New Jersey Probation Division (Bergen County, New Jersey).

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 fraud schemes that disproportionately affect American seniors. These include phone scams and computer-takeover scams.

The public should exercise caution with any caller who claims to be a government employee. Government agencies will never threaten you with immediate arrest or other legal action if you do not send cash, retail gift cards, prepaid debit cards, wire transfers, or Internet currency. They will also never demand secrecy from you in resolving a debt or any other problem. If you need to send a payment to the Social Security Administration, the agency will send a letter with payment options and appeal rights. If you or someone you know is age 65 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311).

The public is reminded that gift cards are for gifts, not for payments. If a stranger purporting to be a legitimate company or government agency demands payment with a gift card, hang up or ignore the message. Anyone who demands payment by gift card is a scammer. Scammers use this method of payment because it is difficult to trace. Once you buy the gift card, scammers typically demand the number on the back of the gift card. That number lets the scammer immediately steal the money loaded onto the card. For more information, visit https://www.consumer.ftc.gov/articles/paying-scammers-gift-cards.

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 - Nnamdi Marcellus MgBodile has been sentenced to prison for bank fraud, money laundering, and conspiracy to commit bank fraud after being convicted at trial. For years, MgBodile opened and directed others to open fraudulent business bank accounts that received millions of dollars from various online frauds. He and others then laundered these funds to other accounts, including dozens of accounts overseas.

“MgBodile and his co-conspirators are representative of the transnational fraudsters who have had had a devastating impact on U.S. residents and businesses,” said U.S. Attorney Kurt R. Erskine. “The groups perpetrating these romance scams and business email compromise frauds target their victims indiscriminately and have caused billions of dollars of losses for victims in recent years.”

“As evidenced by the length of the prison sentence in this case, fraud is a heinous crime that can destroy people’s lives,” said U.S. Secret Service Special Agent In Charge Steven R. Baisel. “We will continue to aggressively investigate and bring to justice those who prey on the vulnerable.”

According to U.S. Attorney Erskine, the charges, and other information presented in court: Nnamdi Marcellus MgBodile opened and directed others to open fraudulent bank accounts in Georgia, New York, and California for sham companies that did not have physical premises, earn legitimate income, or pay wages to employees. MgBodile recruited at least five other individuals to open the fraudulent business bank accounts, including a former bank employee who he bribed to continue to open accounts even after others have been closed for fraud.

MgBodile used these fraudulent accounts to launder the proceeds of various fraudulent schemes, including a romance scam that defrauded a Virginia woman out of more than $5 million, and business email compromise (“BEC”) scams in which MgBodile and others attempted to defraud a Georgia company of nearly $350,000, and an Alabama company of more than $800,000.

Romance scams are a type of online fraud in which victims are targeted by individuals posing as potential paramours. The fraudsters create fake online dating profiles (often with photographs of attractive men or women) and use these fake personas to express strong romantic interest in the victims in order to trick them into sending money to them or their co-conspirators under false pretenses. Romance scams frequently target vulnerable individuals who possess significant financial assets, such as retired widows or widowers.  

The evidence at trial showed that at the end of November 2017 a Virginia woman, who signatory authority over a sizable trust that had been established for her children, met a person (“James Deere”) through an on-line dating service. She was soon convinced that she was in a romantic relationship with “Deere.” Over the next month, the victim communicated via email with Deere, whom she believed had fallen for her. Deere said he wanted to start a life with her and was excited to live with her, but first had to resolve an investment opportunity—an opportunity that was totally fraudulent and fictitious.

Deere told the victim that he was a fund manager and he was on the verge of receiving a sizeable commission (“the funds”) for services provided to an unnamed client. Deere explained to the victim that he needed her to be his “representative partner” and have the Funds deposited into the victim’s bank account to avoid an alleged conflict of interest.

In January and February 2018, after luring the victim, “Deere” and conspirators started requesting via email that she pay various “fees” and “taxes” so that the funds could be released. Between approximately January 2, 2018 and February 12, 2018, and in response to representations made by “Deere” and others regarding the Funds, the victim made approximately twenty-five wire transfers totaling more than $5 million from the trust account into various bank accounts, of which $1.35 million was wired to accounts controlled by MgBodile. After the fraudulent funds hit the accounts controlled by MgBodile, they were then wired to other accounts controlled by MgBodile or overseas accounts in China and the Middle East.

BEC scams commonly involve an employee of a company who has been fooled into responding with email messages that appear to be, but are not, legitimate (“spoof emails”). At trial, the evidence showed that in March 2019, MgBodile and others attempted to defraud a Georgia company out of nearly $350,000 after the Georgia company received emails from what it believed was Oxford Finance, a company that had provided financing to the victim company. The emails fraudulently represented that the victim needed to wire Oxford Finance a quarterly payment rather than being drawn via an automated clearing house, typically referred to as an ACH. None of the emails purporting to be sent from Oxford Finance was actually sent by Oxford Finance. Rather, these “spoof emails” were sent from a domain, “oxfordfiinance.com,” which appeared to be Oxford Finance’s, but was not. Oxford Finance’s actual domain is “oxfordfinance.com” (only one “i" in finance). The emails also appeared to come from Oxford Finance because the purported sender is an actual employee of Oxford Finance and the email’s signature line contained Oxford Finance’s correct physical address

Nnamdi Marcellus MgBodile, 37, of Marietta, Georgia, was sentenced by U.S. District Judge Michael Brown to 13 years in prison to be followed by five years of supervised release. He was charged by a federal grand jury in November 2019 with twenty counts of bank fraud, money laundering, and conspiracy to commit bank fraud. A federal jury convicted him of these charges on May 13, 2021 following an eight-day trial.

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

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 was investigated by the U.S. Secret Service.

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.

ATLANTA – The Department of Justice today announced more than $139 million in grant funding through the department’s Office of Community Oriented Policing Services (COPS Office) COPS Hiring Program (CHP). The awards provide direct funding to 183 law enforcement agencies across the nation, allowing those agencies to hire 1,066 additional full-time law enforcement professionals. Funding totaling $827,258 was awarded in the Northern District of Georgia.

“We are committed to providing police departments with the resources needed to help ensure community safety and build community trust,” said Attorney General Merrick B. Garland. “The grants we are announcing today will enable law enforcement agencies across the country to hire more than 1,000 additional officers to support vitally important community oriented policing programs.”

“In our district, this means more officers on the beat and in the community working proactively to address the root causes of criminal and disorderly behavior, rather than simply responding to crimes once they have occurred,” said U.S. Attorney Kurt R. Erskine.

The City of Lithonia, Georgia, received an award of $827,258, in the Northern District of Georgia.

CHP is a competitive award program intended to reduce crime and advance public safety through community policing. CHP provides funds directly to law enforcement agencies to hire new or rehire additional career law enforcement officers, thereby increasing their community policing capacity and crime prevention efforts. Of the 183 agencies awarded grants today, approximately half will use the funding to focus on building legitimacy and trust between law enforcement and communities; 41 agencies will seek to address high rates of gun violence; 21 will focus on other areas of violence; and 19 will focus CHP resources on combating hate and domestic extremism or supporting police-based responses to persons in crisis. The complete list of awards can be found here. 

Since its creation in 1994, COPS has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and Tribal law enforcement agencies to fund the hiring and redeployment of more than 135,000 officers. CHP, COPS’ flagship program, continues to be in demand today: In FY21, COPS received 590 applications requesting nearly 3,000 law enforcement positions. For FY22, President Biden has requested $537 million for CHP, an increase of $300 million.

To learn more about CHP, please visit https://cops.usdoj.gov/chp-award. For additional information about the COPS Office, please visit https://cops.usdoj.gov/.  

The COPS Office is the federal component of the Department of Justice responsible for advancing community policing nationwide. The only Department of Justice agency with policing in its name, the COPS Office was established in 1994 and has been the cornerstone of the nation’s crime fighting strategy with grants, a variety of knowledge resource products, and training and technical assistance. Through the years, the COPS Office has become the go-to organization for law enforcement agencies across the country and continues to listen to the field and provide the resources that are needed to reduce crime and build trust between law enforcement and the communities served.

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. – Jesse James Smallwood, Delveccho Waller, Jr., Bruce Thompson, Judah Coleman Bailey, and Dashun Martin have been sentenced to prison for conspiring to commit arson of a City of Gainesville Police Department patrol vehicle.

“The defendants sought out and intentionally destroyed a police vehicle using the cover of legitimate peaceful protest,” said U.S. Attorney Kurt R. Erskine.  “The criminal conduct of these defendants showed a reckless disregard for the safety of others.”     

“The FBI Atlanta Field Office is committed to supporting our local and state law enforcement partners in an effort to maintain public safety in the communities we serve,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “We are not focused on peaceful protests, but instead concentrating on identifying, investigating and disrupting those individuals who are taking advantage of the protests to incite violence and engage in criminal activity.”

“We want our community to know we stand with them during their rights to peacefully protest. However, these defendants did not peacefully protest, rather, they took this opportunity to target one of our officers at his residence. This type of violence and destruction will not be tolerated in our community,” said Jay Parrish, Chief of Police, Gainesville Police Department.

According to U.S. Attorney Erskine, the federal charges, and other information: On the evening of June 1, 2020, the five defendants met in the parking lot of a pharmacy located near downtown Gainesville. The men were in the area to participate in a legitimate protest concerning the killing of George Floyd. Bailey brought a flare gun and cartridges to the pharmacy with him. While in the parking lot of the pharmacy, the five defendants discussed their knowledge of the location of a parked Gainesville Police Department patrol vehicle. They all agreed that they would drive to the location and someone would shoot the flare gun at the police car.

Smallwood drove the group to the apartment complex where the police car was parked. Upon arriving at the location, the defendants pulled masks and bandanas over their faces and left Smallwood’s car. Bailey approached the police vehicle and shot a flare inside the vehicle through the rear windshield, setting the vehicle on fire. The five defendants then fled the scene in Smallwood’s car. Shortly afterward, the group was arrested following a tip from a witness who saw the men and the vehicle they drove to go to and from the apartment complex.

U.S. District Judge Steve C. Jones sentenced the defendants for the offense of conspiring to commit arson as follows:

• Smallwood, of Gainesville, Georgia, was sentenced on November 16, 2021, to one year, nine months of imprisonment; Smallwood pleaded guilty on September 29, 2021;

• Waller, Jr., 23, of Gainesville, Georgia, was sentenced on August 26, 2021, to one year, nine months of imprisonment; Waller, Jr. pleaded guilty on May 13, 2021;

• Bailey, 21, of Gainesville, Georgia, was sentenced on June 30, 2021, to one year, nine months of imprisonment; Bailey pleaded guilty on March 25, 2021;

• Martin, 24, of Gainesville, Georgia, was sentenced on November 15, 2021, to one year, five months of imprisonment; Martin pleaded guilty on November 4, 2021; and

• Thompson, 23, of Oakwood, Georgia, was sentenced on August 26, 2021, to just over one year, two months of imprisonment; Thompson pleaded guilty on May 10, 2021.

All the defendants were ordered to serve three years of supervised release following the completion of their prison terms. The men were also ordered to pay the Gainesville Police Department $3,678.17 in restitution.

The FBI-Gainesville Field Office, the Gainesville Police Department, and the Gainesville Fire Department investigated the case.

Assistant U.S. Attorney Greg Radics 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 - Emanuel Gray has been sentenced to prison for producing child pornography and cyberstalking two teenage girls he met online. After the girls broke off communications with him, Gray coerced them into sending sexually explicit photos and videos, and then retaliated against them when they refused to send him more.

“Gray stalked and threatened his victims after they rebuffed his demands,” said U.S. Attorney Kurt R. Erskine. “He terrorized these girls by threatening to post their photographs online if they did not comply. A jury has held Gray accountable for his inexcusable crimes, and he will now serve time in prison.”

“The facts of this case are disturbing but unfortunately all too common,” said Special Agent in Charge of FBI Atlanta, Chris Hacker. “This sentencing sends a message to Gray and any other predators that the FBI will go to any length to bring child predators to justice. We would like to remind the community to remain vigilant with online relationships and to never send compromising images of yourself to anyone, no matter who they say they are.”

According to Acting U.S. Attorney Erskine, the charges and other information presented in court: Between May 2017 and November 2018, when he was arrested, Emanuel Gray targeted at least two teenage girls who he had met online through various social media apps, including Kik and Snapchat. While chatting online, the girls—who both testified at trial but did not know each other—sent sexually suggestive images and/or videos of themselves to Gray.

One of the victims, who was 14 at the time, testified after meeting Gray online they were in a “relationship” for a short time. After she decided to end the relationship, Gray harassed and threatened her until she sent more sexually explicit photos. Gray not only threatened her directly but attempted to “expose her” by posting explicit photos of her on her high school band's Facebook page.  The other victim, who was 16 at the time, described being threatened and harassed by Gray in similar manner. Gray sent multiple messages to her high school band's Facebook page and created multiple fake Instagram accounts to “expose her” as well. Both girls also testified that Gray would instruct them on what to show and what to do, including demanding that they masturbate for him.

Emanuel Gray, 22, of Decatur, Georgia, was sentenced by U.S. District Judge Steve C. Jones to 20 years in prison to be followed by five years of supervised release. Gray will also be required to register as a sex offender upon release from prison. He was charged with two counts of producing child pornography, two counts of cyberstalking, and one count of possession of child pornography. A federal jury convicted him of these charges on July 14, 2021.

This case was investigated by the Federal Bureau of Investigation, with assistance from the Schulenburg, Texas and Villa Rica, Georgia Police Departments.

Assistant U.S. Attorneys Alex R. Sistla and L. Skye Davis, Deputy Chief of the Violent Crime & National Security Section, prosecuted the case.

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

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

ATLANTA - Jason Lary, the Mayor of Stonecrest, Georgia, has been arraigned on federal charges of wire fraud, conspiracy, and federal program theft.  The charges relate to a scheme to allegedly steal federal relief funds granted to Stonecrest to address the economic fallout of the COVID-19 pandemic.  Lania Boone, a bookkeeper for the entity hired by Stonecrest to disburse the relief funds, has also been arraigned on a federal charge of conspiring with Lary to steal relief funds.

“Lary allegedly abused the power and trust conferred on him as Mayor of Stonecrest to steal hundreds of thousands of dollars intended for COVID-19 relief,” said Acting U.S. Attorney Kurt R. Erskine.  “Instead of providing aid to Stonecrest’s deserving citizens, Lary allegedly diverted funds for his own use, including to pay off his taxes and the mortgage on his lakefront home.”

“It is very troubling when an elected official, someone sworn to protect the community they serve, violates that oath by stealing relief funds intended to aid their community during a global pandemic,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The allegations against Lary and Boone indicate an abuse of a position of trust and blatant disrespect for the law, which will not be tolerated by the FBI.”

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

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

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

Stonecrest did not disburse the $6 million allocated to the Stonecrest Cares Program and Small Business Program.  Instead, 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 allegedly worked behind the scenes to assist MRPC, including by recruiting its CEO, opening its bank accounts, and ensuring 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, Lania 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 allegedly helped decide where the relief funds were directed.

Lary allegedly abused his position to devise and execute a scheme to steal relief funds after they were distributed by MRPC.  First, Lary allegedly 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 allegedly did not tell Church 1 at this time that he actually controlled REMC.  Lary allegedly 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 allegedly 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 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 allegedly spent the money to pay his own property expenses and his dues to the Georgia Campaign Finance Committee.

In addition, Lary and others acting on his behalf allegedly solicited relief funds from businesses that received grants under the Small Business Program.  Lary and others allegedly 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 allegedly did not tell the businesses that he controlled these entities. 

In total, businesses were allegedly defrauded out of hundreds of thousands of dollars of relief funds.  The relief funds deposited into the Visit Us and Battleground Media accounts were allegedly used by Lary to benefit himself and others.  For example, Lary allegedly used relief funds held by Visit Us to pay for an associate’s political advertising.

Finally, Lary allegedly conspired with Lania Boone, MRPC’s bookkeeper, to steal relief funds before they were disbursed by MRPC.  In January 2021, Boone allegedly 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 allegedly knew the purpose of the transfer was to pay off the mortgage on a lakefront home owned by Lary.  Around the same time, Lary allegedly 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, and Lania Boone, 60, of Decatur, Georgia, were each arraigned on a criminal information on November 10, 2021 before U.S. Magistrate Judge Regina D. Cannon.  Members of the public are reminded that each criminal information only contains charges.  The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.

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

Assistant U.S. Attorney 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 - William F. Dorsey Jr., has been sentenced to federal prison for embezzling over $150,000 from his father’s beneficiary account funded by the U.S. Department of Veterans Affairs.

“Stealing from a disabled veteran who is also his parent is shameful,” said Acting U.S. Attorney Kurt R. Erskine. “Our veterans served this country with honor, and we will aggressively investigate and prosecute those who seek to take advantage of them.”

“This sentence sends a clear message that the VA OIG will vigorously investigate those who steal from our nation’s Veterans with disabilities,” said Special Agent in Charge David Spilker of the Department of Veterans Affairs Office of Inspector General’s Southeast Field Office.  “The VA OIG will continue to ensure that Veterans with disabilities are not exploited for financial gain or greed.”

According to Acting U.S. Attorney Erskine, the charges and other information presented in court: On May 10, 2010, William Dorsey, Jr., signed a fiduciary agreement agreeing to manage his father’s benefit payments provided by the VA. His father, William Dorsey, Sr., is a 69-year-old disabled Vietnam Veteran diagnosed with Alzheimer’s Disease, Parkinson’s Disease, and dementia. According to medical records from the secure medical center where he resides, William Dorsey, Sr. is restricted to an adaptive chair, cannot communicate, and requires total assistance with his daily activities.

As part of the fiduciary agreement, William Dorsey, Jr., agreed to spend the VA funds only for the Veteran’s benefit, to never comingle funds, to never withdraw cash from the account, and to keep accurate records and receipts. However, by the time he was removed as fiduciary seven years later in May 2017, bank records showed that Dorsey, Jr. had violated all of these conditions. Financial records showed that Dorsey, Jr. spent thousands of dollars in disability benefits on himself, wrote checks from the Veteran’s account to himself, and retained over $100,000 in the Veteran's disability benefits after the VA removed him as the fiduciary.

William F. Dorsey, Jr., 44, of Atlanta, Georgia, was sentenced by U.S. District Court Judge Eleanor L. Ross to one year and one day in prison to be followed by one year of supervised release and ordered to pay restitution in the amount of $23,052.87.  Dorsey was found guilty by a jury on July 21, 2021.

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

Assistant U.S. Attorneys Calvin A. Leipold, III and Irina K. Dutcher, and former Assistant U.S. Attorney Scott McAfee 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.

NEWNAN, Ga. - Anthony Lavell Williams, Jr. has been sentenced for perpetrating a string of armed robberies in Carroll, Catoosa, Chattooga, Cobb, and Hall Counties during which Williams assaulted pharmacy customers and forced employees to surrender cash and tens of thousands of opioids and amphetamines to him.

“Driven by greed, Anthony Williams terrorized our community and sought to profit off of the opioid epidemic,” said Acting U.S. Attorney Kurt R. Erskine. “This epidemic tragically claims many American lives every year.  A multi-agency response at all levels of government and from every corner of this district has brought him to justice.”

“This sentence is a direct result of what good multi-jurisdictional partnerships and communication can accomplish,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “We are grateful for all the hard work by our partners that allowed Williams to be removed from the streets before he could commit any worse crimes or traumatize anymore innocent citizens.”

According to Acting U.S. Attorney Erskine, the charges and other information presented in court: Williams, while armed with a handgun, robbed five retail pharmacies between May 2020 and July 2020. Williams escaped with approximately $9,600 in cash and more than $183,000 of controlled substances. The pharmacies’ losses were eclipsed by the street value of the stolen drugs, which included but was not limited to nearly 44,000 doses of opioids and more than 5,700 tablets containing amphetamine.

Williams’s robberies were carefully planned and increasingly violent. During the May 7, 2020 robbery of a pharmacy in Powder Springs, Georgia, and the May 11, 2020 robbery of a pharmacy in Summerville, Georgia, Williams held store employees at gunpoint, forced them to empty cash registers, and then forced them to another part of the store while he escaped.

On June 4, 2020, Williams robbed a pharmacy in Fort Oglethorpe, Georgia. During the robbery, Williams threatened a pharmacist and ordered her to open a drug safe containing Schedule II controlled substances from which Williams pillaged very large quantities of oxycodone, hydrocodone, amphetamine, and morphine.

A month later, on July 5, 2020, Williams stole cash and more than $50,000 worth of Schedule II controlled substances from a pharmacy in Carrollton, Georgia. Williams took only the most dangerous narcotics, leaving other pharmaceuticals behind. He forced all of the employees and customers in the store to surrender their cell phones and lay on their stomachs in different areas of the store before fleeing.

On July 7, 2020, Williams walked into a pharmacy in Gainesville, Georgia, grabbed a customer at the front register by her hair, and forced the customer and cashier at gunpoint to go with him to the pharmacy at the back of the store. Williams made his victims abandon their cell phones, demanded “painkillers,” and forced them to unlock safes and load a backpack with drugs. Williams stole $1,820 in cash and approximately $30,000 of Schedule II narcotics.

Anthony Lavell Williams, Jr., 28, of Rome, Georgia, was sentenced by Chief U.S. District Judge Timothy C. Batten, Jr. to 12 years, 7 months in prison to be followed by five years of supervised release. He was also ordered to pay restitution in the amount of $192,983.77 after pleading guilty to five counts of interference with commerce by robbery and armed robbery involving controlled substances. Williams pleaded guilty to these charges on August 3, 2021.

This case was investigated by the Federal Bureau of Investigation, Carrollton Police Department, Gainesville Police Department, Fort Oglethorpe Police Department, Powder Springs Police Department, Summerville Police Department, Bartow-Cartersville Drug Task Force, and Rome Police Department with assistance from the Georgia Bureau of Investigation and Rome/Floyd County Metro Task Force.

Assistant U.S. Attorney Theodore S. Hertzberg 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.

Yesterday, two Georgia men and members of the Nine Trey Gangster national criminal organization pleaded guilty to Racketeer Influenced Corrupt Organization (RICO) conspiracy.

The Nine Trey Gangsters (NTG) are a national gang that started in the prisons of New York as a subset of the United Bloods Nation and has since spread throughout the East Coast and Southeast. The NTG’s members and associates engage in acts of violence, including murder, assaults, robbery, firearms possession, witness tampering, obstruction of justice, drug trafficking, extortion, and other criminal activities. The NTG have a hierarchical structure and members throughout the country are subdivided into separate groups or “lines,” usually named after the gang’s leaders. Each NTG member has a specific rank within the gang or a specific line, and this rank comes with specific duties and responsibilities. Both of the defendants who pleaded guilty yesterday were part of the gang’s “fire” line and were responsible for planning attacks on rival gangs.

According to court documents, Khajavius Mitchell, aka KJ, 28, of Atlanta, held the rank of “fourth floor” in the gang’s hierarchy, and was responsible for assisting the superiors known as “fifth floors” in running the gang’s activity on a daily basis.

Devonta Marshall, aka Street Monsta, 27, of Atlanta, held the rank of “first floor” in the gang’s hierarchy and was responsible for overseeing the gang members without rank within a certain area.

Both pleaded guilty to count 1 of the second superseding indictment, charging them and nine others with RICO conspiracy for their involvement in planning, facilitating, and executing multiple acts of violence and participating in the gang’s drug trafficking activities. Mitchell and Marshall will be sentenced at a later date by U.S. District Court Judge Amy Totenberg and face a statutory maximum term of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division, Acting U.S. Attorney Kurt R. Erskine for the Northern District of Georgia, and Special Agent in Charge JC (Chris) Hacker of the FBI’s Atlanta Field Office made the announcement.

The FBI is investigating the case.

ATLANTA – Three anesthesia providers and several Georgia outpatient surgery centers, as well as their physician-owners and an administrator, agreed to pay more than $28 million to resolve allegations that they entered into kickback arrangements by paying and receiving payments for medications, supplies, equipment and labor as well as free staffing in exchange for the referral of patients.

“A physician’s health care decisions should be based solely on what is in the patient’s best interest, not what increases the physician’s bottom line,” said Acting U.S. Attorney Kurt R. Erskine. “There are significant consequences for healthcare providers who put their own financial well-being ahead of the well-being of their patients.”

“Paying or receiving kickbacks to secure taxpayer-funded healthcare payments – as alleged in this case – is illegal and corrupts the federal health care system,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services.  “We will continue to work diligently with our State and Federal law enforcement partners to protect government health programs and those they serve.”  

“Medical providers who pay out or take kickback payments for referrals are taking advantage of patients and taxpayer funded healthcare programs,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI is proud of the role it played in this settlement and will continue to provide investigative assets and resources to ensure no one takes advantage of a fair system and undermines the public’s trust.”

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 2005 and 2015, Ambulatory Anesthesia of Atlanta, LLC (f/k/a Ambulatory Anesthesia of Atlanta, PC) (“AAA”) and Northside Anesthesiology Consultants, LLC (“NAC”) made payments for drugs, supplies, equipment and labor, and provided free staffing to a number of Georgia outpatient surgery centers in order to induce the centers to select AAA and NAC to be their exclusive anesthesia providers.  The Government alleges that these arrangements were negotiated by Stanford Plavin, M.D. on behalf of AAA and NAC.  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.

The following individuals and entities have entered into settlement agreements with the Government (listed in alphabetical order):

•         Ambulatory Anesthesia of Atlanta, LLC (“AAA”)

•         Arif A. Aziz, M.D.

•         Jean Calhoun

•         Jay A. Cherner, M.D.

•         David Finkelman, M.D.

•         Alan M. Fixelle, M.D.

•         DCA Diagnostics, L.L.C.

•         The Endoscopy Center, LLC (Savannah)

•         Endoscopy Consultants, LLC

•         Gastrointestinal Specialists of Georgia, P.C.

•         Georgia Endoscopy Center, LLC

•         G.I. Diagnostics Endoscopy Center, L.L.C.

•         Eugene H. Hirsh, M.D.

•         A. Steven McIntosh, M.D.

•         North Fulton Medical Center, Inc.

•         Northside Anesthesiology Consultants, LLC (“NAC”)

•         Northwest Georgia Orthopaedic Surgery Center, LLC

•         Stanford Plavin, M.D.

•         M. Thomas Riddick, M.D.

•         Bruce A. Salzberg, M.D.

•         Gary S. Simon, M.D.

•         David N. Socoloff, D.O.

•         United Surgical Partners International, Inc.

•         Wellbrook Endoscopy Center, P.C.

This settlement resolves a lawsuit originally filed in the U.S. District Court for the Northern District of Georgia by Kathleen Hartney-Velazco, M.D., Jan Kersey and Capitol Anesthesiology, P.C. (the Relators) under the qui tam or whistleblower provisions of the False Claims Act.  United States ex rel. Capitol Anesthesiology, P.C., et al. v. Stanford Plavin, M.D., et al., No. 1:11-cv-2513-SCJ.  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 Relators have received over $4,700,000.00 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 Medicaid Fraud Control Unit.

The civil settlement was reached by Assistant U.S. Attorney Neeli Ben-David and Georgia 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 - Daniel Deocampo, a former professor and dean at Georgia State University (“GSU”), has pleaded guilty to possession of child pornography. Images and videos of children as young as five years old, engaged in sexually explicit conduct, were among the items confiscated.

“Deocampo was caught brazenly using the university network to exploit children,” said Acting U.S. Attorney Kurt R. Erskine. “It is disturbing when we learn that an educator engages in this type of disgusting behavior.  Possessing child pornography victimizes and abuses the children in the images each time they are disseminated.”

“Children portrayed in child pornography images are victimized each time those images are distributed or viewed, and this case is especially distressing because the suspect was a professor who worked with our youth,” said Chris Hacker, Special Agent in Charge of FBI Atlanta.  “The FBI remains committed to protecting our children and is thankful for the law enforcement partnerships that make it possible to stop people like Deocampo from victimizing any more children.”

According to Acting U.S. Attorney Erskine, the charges and other information presented in court: In November 2020, Georgia State University's Cyber Security Department (“GSU Cyber Security”) alerted the FBI that an employee was accessing websites which appeared to contain child pornography through the university’s network.

Working together, the FBI and GSU Cyber Security identified Deocampo as the individual who had accessed multiple websites containing child pornography (or had links to other websites containing child pornography) from campus in November and December 2020. GSU Cyber Security also advised the FBI that Deocampo routinely accessed the university’s network from home. Based on that information, FBI determined that Deocampo was also accessing websites containing child pornography from his home on several days in late December 2020 and early January 2021.

Based on the foregoing, on January 6, 2021, the FBI executed search warrants at Deocampo's residence, as well as his GSU office and lab space. As a result of the search, agents recovered an Apple laptop belonging to Deocampo that contained more than 4,000 files of child pornography, including approximately 190 videos.

Daniel Deocampo, 48, of Avondale Estates, Georgia, pleaded guilty to possession of child pornography on November 3, 2021. Deocampo’s sentencing is scheduled for February 23, 2022 at 11:00 a.m. before U.S. District Judge Steven D. Grimberg.

This case is being investigated by the Federal Bureau of Investigation and Georgia State University Police Department.

Assistant U.S. Attorney Alex R. Sistla 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.

ATLANTA - Thomas Ukoshovbera A. Gbenedio has been convicted by a federal jury of illegally dispensing and distributing controlled substances from his pharmacy.

“As a pharmacist, Gbenedio was trusted to appropriately dispense controlled substances,” said Acting U.S. Attorney Kurt R. Erskine.  “His behavior fed into the continuing problem of addiction to powerful prescription opioids, which, unfortunately, continues to take a daily toll on many members of our community.”

“Removing and ultimately eliminating healthcare providers who unlawfully dispense pharmaceutical products for non-medical reasons is an important part of DEA’s mission,” said Special Agent in Charge of the DEA Atlanta Field Division Robert J. Murphy. “This pharmacist not only distributed copious quantities of opiate-based pills to scores of drug-seeking patients but collected large sums of money from this illegal practice. Gbenedio will no longer be able to commit such unlawful acts due to the hard work and dedication put forth by our federal, state and local law enforcement counterparts who made this investigation a success.”

According to Acting U.S. Attorney Erskine, 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, forged, fraudulent, or 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 was apprehended at the Dallas-Fort Worth airport with the assistance of U.S. Marshals.

Sentencing for Thomas Ukoshovbera A. Gbenedio, 71, of Mableton, Georgia, is scheduled for February 7, 2022, at 10:00 a.m. before U.S. District Judge Thomas W. Thrash.

This case is being investigated by the Drug Enforcement Administration.

Assistant U.S. Attorneys Angela Adams and Erin N. Spritzer are prosecuting the case.

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

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

ATLANTA - Shanga A. Hankerson, the former owner of the Gladys Knight’s Chicken and Waffles restaurant in Atlanta, Georgia, has been sentenced for willful failure to remit payroll taxes.

“Hankerson willfully disregarded his tax obligations for many years,” said Acting U.S. Attorney Kurt R. Erskine.  “Payroll taxes fund social insurance programs, including Social Security and Medicare, and are a large source of revenue for the federal government.  Employers who fail to comply with their legal obligations will be held accountable.”

“While ownership of a well-known restaurant in our community has its perks, it also comes with great responsibility,” said IRS Criminal Investigation Special Agent in Charge James E. Dorsey. “Paying taxes is a way to give back to the community, but unfortunately Hankerson chose to use those funds for other means.  This sentencing emphasizes that all employers, big and small, have equal responsibility to collect, report, and pay over their payroll taxes.”

According to Acting U.S. Attorney Erskine, the charges and other information presented in court: In 1997, Hankerson opened his first restaurant, Gladys Knight’s Chicken and Waffles, in Atlanta.  Over the next several years, Hankerson expanded the concept to at least three other locations in northern Georgia and Washington, D.C.  Hankerson was the sole owner of the businesses that operated the restaurants.

As an employer, Hankerson’s companies were required to withhold from employees’ gross pay Federal Insurance Contributions Act (“FICA”) taxes, which represent Social Security and Medicare taxes, and federal income taxes.  Collectively, these withheld taxes are referred to as “payroll taxes.”  Specifically, employers are required to file, one month after the conclusion of the calendar quarter, an Employer’s Quarterly Federal Tax Return, setting forth the amount of payroll taxes due. 

An individual is responsible for collecting, accounting for, and paying over the payroll taxes if he or she has the authority required to exercise significant control over the employer’s financial affairs.  As the sole owner, Hankerson was the responsible person, and he had the responsibility to collect, truthfully account for, and pay over payroll taxes due.  From at least 2012 to 2016, Hankerson failed to fully remit over $1 million in payroll taxes due.   

Shanga Hankerson, 45, of Atlanta, Georgia, was sentenced by U.S. District Judge Michael L. Brown to serve two years in prison, one year of supervised release, and ordered to pay restitution of $1,039,310.65.  Hankerson was convicted on July 21, 2021, after he pleaded guilty.

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

Assistant U.S. Attorney Bernita B. Malloy 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 – Andre Jackson, who at the time of the offense was employed by the Clayton County, Georgia Police Department, has been sentenced for conspiracy to commit wire fraud and bank fraud.

“It is reprehensible that a police officer would engage in behavior that violates the law,” said Acting U.S. Attorney Kurt R. Erskine.  “Jackson’s actions showed he did not have respect for the very thing he swore to uphold.”

“A law enforcement officer’s responsibility is to serve and protect, not to conspire and steal,” said U.S. Secret Service Special Agent in Charge Steven R. Baisel. “Unfortunately, sometimes even those in positions of trust can be drawn to their baser instincts of greed.”

According to Acting U.S. Attorney Erskine, the charges, and other information presented in court:  From approximately January 2015 through January 2017, while he was employed as a Clayton County, Georgia police officer, Jackson conspired with others to commit wire fraud and bank fraud. Jackson and his coconspirators recruited more than ten individuals with good credit—including some of Jackson’s fellow police department employees—to apply for loans to purchase luxury vehicles from automobile dealers in the Northern District of Georgia and the Southern District of Texas. Jackson and his coconspirators told the straw purchasers that they planned to sublease the vehicles to individuals who had significant incomes but poor credit. Jackson and his coconspirators also told the straw purchasers that one of Jackson’s coconspirators owned a car-leasing business, which would be responsible for servicing the vehicles, obtaining and paying for insurance on the vehicles, and paying the monthly loan payments. Jackson and his coconspirators promised to pay each straw purchaser as much as $5,000 for every loan they obtained.

Jackson and his coconspirators caused the straw purchasers to submit loan applications that contained false and fraudulent information concerning their income and employment.

For example, many of the loan applications falsely stated that the applicant was employed by either Alot Frontier Group, LLC or ARC Financial Group, Inc.—two bogus companies owned by Jackson. In addition, Jackson and his coconspirators knowingly and fraudulently executed and caused the straw purchasers to fraudulently execute sales agreements and loan documents, which certified to the lenders that the loan applicants would not sell, rent, lease, or transfer their interest in the vehicles without the lenders’ express written permission. When the sales transactions were completed, Jackson and his coconspirators took possession of the vehicles and then subleased the vehicles to third parties, contrary to the agreements that the straw purchasers had entered into with the lenders. Jackson and his coconspirators did not make the loan payments as required, and many of the straw purchasers defaulted on their loans.

Andre Jackson, 56, of Fayetteville, Georgia, was sentenced by Chief U.S. District Judge Timothy C. Batten, Sr. to three years, five months in prison to be followed by three years of supervised release, and 120 hours of community service. Judge Batten also ordered Jackson to pay $1,011,989.87 in restitution and a special assessment of $100. Jackson was convicted on these charges on June 25, 2021, after he pleaded guilty.

This case was investigated by the U.S. Secret Service.

Assistant U.S. Attorneys Jeff Brown and Russell Phillips prosecuted the case.

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

ATLANTA – Lesbia Lily Gonzalez Moreno has been sentenced for paying bribes to Gerald D. Harris, a former Supervisor in the DeKalb County Tax Commissioner’s Office, in exchange for Harris unlawfully registering vehicles.

“For months, Moreno paid bribes to illegally register vehicles without the necessary documentation,” said Acting U.S. Attorney Kurt R. Erskine. “This corruption betrayed the trust of our citizens in government and undermined public safety.”

“When citizens like Moreno pay bribes to public officials they are part of a crime that tarnishes every government official and betrays the trust of our citizens in those officials,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Along with our federal, state and local law enforcement partners, the FBI is hopeful the punishment she receives will help restore the public’s trust.”

“Ms. Moreno is rightfully being held accountable for her actions. It is our hope her sentence will deter others from engaging in corruption and schemes to defraud the government and betray public trust,” said. Sherry Boston, DeKalb County District Attorney.

“The Georgia Department of Revenue was proud to assist our federal partners in the course of this investigation. The Department’s Motor Vehicle Division is responsible for motor vehicle tag and title processing and registration statewide. Our duties include ensuring that there is integrity throughout this process and so we will continue to work diligently with both our federal and local partners to enforce the law and maintain the public trust,” said Commissioner Robyn A. Crittenden, Georgia Department of Revenue.

According to Acting U.S. Attorney Erskine, the charges, and other information presented in court: the DeKalb County Tax Commissioner’s Office is an agency of DeKalb County, Georgia, responsible for billing and collecting property taxes, processing Homestead Exemptions, and collecting delinquent taxes. In addition, the Motor Vehicle Division of the DeKalb County Tax Commissioner’s Office handled all aspects of motor vehicle registrations, including: (a) managing the collection of motor vehicle taxes, (b) issuing vehicle tags and titles, and (c) processing vehicle registration renewals for citizens and businesses located in DeKalb County, Georgia.

From July 2017 to November 2019, Gerald D. Harris served as the Supervisor of Tax Tag Clerks for the DeKalb County Tax Commissioner’s Office. In that position, Harris oversaw the Tax Commissioner North Office’s clerks who processed motor vehicle registrations and renewals for customers. As a supervisor, Harris generally interacted with customers only if a dispute existed between clerks and customers. Similarly, based on his supervisory role, the Motor Vehicle Division did not issue Harris a cash drawer or a credit card terminal, nor was Harris responsible for processing transactions or payments with customers.

From at least May 2019 to November 12, 2019, Lesbia Lily Gonzalez Moreno repeatedly paid Harris bribe payments to register unlawfully vehicles for owners who did not present a valid Georgia driver’s license or identification card. Under state law, a vehicle owner cannot register a vehicle or receive a license plate unless they present a valid Georgia driver’s license or identification card at the time of application. Nevertheless, in exchange for bribe payments, typically $200 per vehicle, Harris unlawfully registered and obtained license plates for owners identified by Moreno. In many cases, Moreno paid bribes to register vehicles for people who presented only foreign identification documents. During this period, Moreno paid Harris more than $20,000 in bribe payments.

On July 14, 2020, Harris pleaded guilty to federal program bribery and blackmail, and was sentenced to two years in prison and three years of supervised release.

Lesbia Lily Gonzalez Moreno, 47, of Atlanta, Georgia was sentenced by U.S. District Judge Timothy C. Batten to one year, one month in prison, to be followed by three years of supervised release, after she pleaded guilty to the charge of honest services wire fraud on June 22, 2021.

The case was investigated by the FBI, DeKalb County District Attorney’s Office, Georgia Department of Revenue, and DeKalb County Tax Commissioner’s Office.

Assistant U.S. Attorney Nicholas Hartigan prosecuted the case.

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

GAINESVILLE, Ga. - Almarud Duarte, David Garcia, Kevin Tello, and Eduardo Penaloza-Pacheco have been indicted for allegedly conspiring to sell methamphetamine by the kilogram. When law enforcement searched their residences, they seized approximately 200 kilograms of methamphetamine, the bulk of it coming from Garcia’s residence in Duluth.

“This case highlights the great work resulting from a partnership between federal law enforcement and state/local authorities,” said Acting U.S. Attorney Kurt R. Erskine.  “We believe countless lives have been saved now that this meth is not plaguing our communities.”

“This is a significant amount of poison that will not make it into our communities, driving crime and violence,” 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 finding arresting and prosecuting everyone involved in this illicit trade.”

“Removing these four defendants from our streets for their alleged drug trafficking activity, immediately makes our communities safer,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI and our federal, state and local law enforcement partners work tirelessly to rid communities of dangerous drugs that threaten our citizens lives.”

“When investigations like these have such extraordinary outcomes, they make headlines, and rightly so,” said Hall County Sheriff Gerald Couch.  “Drugs taken off the streets and criminals in jail can only make our communities safer.  I do, however, want to commend our MANS Unit agents and assisting agencies for the extremely hard work they put into the case.  Without these men and women, the headlines wouldn’t be possible.”

“The Georgia State Patrol will continue working collaboratively with our local, state, and federal partners in identifying and arresting people who purchase and distribute illegal drugs.  This case represents teamwork among all the agencies involved and demonstrates law enforcement’s commitment to getting dangerous drugs off the streets of our communities,” said Lt. W. Mark Riley, Georgia Department of Public Safety, Georgia State Patrol.

According to Acting U.S. Attorney Erskine, the indictment, and other information presented in court: From May 2021 to August 2021, Almarud Duarte allegedly sold methamphetamine by the kilogram, shortly after obtaining the methamphetamine from Kevin Tello or David Garcia. On June 28, 2021, Eduardo Penaloza-Pacheco allegedly sold a kilogram of methamphetamine, shortly after obtaining the methamphetamine from Kevin Tello.

Almarud Duarte, 25, of Oakwood, Georgia, David Garcia, 40, of Duluth, Georgia, Kevin Tello, 26, of Lawrenceville, Georgia, and Eduardo Penaloza-Pacheco, 36, of Gainesville, Georgia, were indicted on October 26.2021.  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. Immigration and Customs Enforcement’s Homeland Security Investigations, the Federal Bureau of Investigation’s Safe Streets Task Force, the Gwinnett Metro Task Force, the DEA, the Hall County Multi-Agency Narcotics Squad, and the Georgia State Patrol.

Assistant U.S. Attorney Jennifer Keen is prosecuting the case.

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

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

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

ATLANTA – Christian Akhatsegbe has been arraigned on federal charges of wire and computer fraud conspiracy, access device fraud, and aggravated identity theft related to a multi-million-dollar cyber-fraud scheme allegedly perpetrated through email phishing, credential harvesting, and invoice fraud.  Emmanuel Aiye Akhatsegbe, who is believed to be residing in Nigeria, was also charged in the scheme.

“The scope of the defendants’ alleged fraudulent conduct is extraordinary,” said Acting U.S. Attorney Kurt R. Erskine.  “The indictment in this case results from the tireless work of federal law enforcement and the valuable cooperation of corporate investigators and agency victims.  These federal charges also serve as a reminder to those perpetrating cyber and fraud schemes, whether it be from Atlanta or any corner of the globe.”

“This case is an example of our persistent determination to hold criminals accountable no matter how sophisticated their cyber fraud or their geographic location,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “This indictment would not have been possible without the hard work and cooperation of our federal law enforcement and private sector partners. The FBI would like to remind businesses to remain diligently alert to potential email compromises and fraud schemes.”

According to Acting U.S. Attorney Erskine, the charges, and other information presented in court: Christian Akhatsegbe, Emmanuel Aiye Akhatsegbe, and their conspirators allegedly engaged in a scheme that involved sending phishing emails to victim companies and organizations in the United States and Europe, stealing employee access credentials, and then harvesting the credentials on computer servers.   Some of the phishing emails contained a link to a webpage that was designed to resemble a login page for Microsoft Office but actually captured email account credentials.  Using the stolen credentials, Christian Akhatsegbe, Emmanuel Aiye Akhatsegbe, and their conspirators then allegedly sent emails to other employees at the victim companies and organizations.  The emails contained fake invoices that requested payment of hundreds of thousands of dollars into bank accounts connected to the conspirators.  

As an example of this scheme, the indictment alleges that in November 2019, an employee of a company in the United Kingdom received a phishing email, which resulted in their credentials being logged, stolen, and later stored on a computer server that was allegedly accessed and maintained by Christian Akhatsegbe, Emmanuel Aiye Akhatsegbe, and their conspirators.  Using the access credentials stolen from the employee, the conspirators allegedly sent an email to another employee of the company, which appeared to originate from one of the company’s vendors. The email attached a fraudulent invoice in the amount of $434,383.45 with wiring instructions to a bank in Hong Kong.  The victim company later paid the fraudulent invoice and wired the funds to Hong Kong.

In another instance, in December 2019, using credentials stolen from a Massachusetts victim company employee, Christian Akhatsegbe, Emmanuel Aiye Akhatsegbe, and their conspirators allegedly sent an email to another employee of the company, which appeared to originate from one of the company’s vendors. The email attached a fraudulent invoice in the amount of $498,000 and requested that the victim send payment to a bank in Hong Kong.  The victim paid the invoice, together with a second invoice in the same amount, wiring a total of $996,000 to a bank account in Hong Kong.

Christian Akhatsegbe, 35, of Atlanta, Georgia, and Emmanuel Aiye Akhatsegbe, 46, of Lagos, Nigeria, were indicted by a federal grand jury on October 26, 2021.  Members of the public are reminded that the indictment only contains charges.  The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.

This case is being investigated by the Federal Bureau of Investigation.  Valuable assistance has also been provided by Microsoft Corporation’s Digital Crimes Unit.

Assistant U.S. Attorney Michael Herskowitz, Chief of the Cyber and Intellectual Property Crimes Section, is prosecuting the case together with attorneys from the Department of Justice, Criminal Division, Computer Crime & Intellectual Property 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 – Curant, Inc., which owns pharmacies in Smyrna, Georgia and St. Petersburg, Florida, along with its owners and related entities, agreed to pay $4.6 million to resolve allegations that they violated the False Claims Act by, among other things, charging the government far higher prices than the “usual and customary” prices charged to other patients.

“Pharmacies cannot overcharge government healthcare programs while offering cheaper prices to others, in violation of their payor agreements,” said Acting U.S. Attorney Kurt Erskine. “Such actions undermine efforts to protect government healthcare plans and keep costs lower.”

“The FBI is committed to protecting the health and safety of the American taxpayer,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Healthcare providers that take shortcuts to increase their financial bottom line must be held accountable for improper and illegal billings that increase the cost of medical care.”

“This settlement serves as a warning to those companies and individuals who seek to take advantage of the Department of Defense (DoD) health care program,” stated Special Agent in Charge Cynthia A. Bruce of the DoD, Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office.  “DCIS and our investigative partners are committed to fully investigating allegations of fraud, waste and abuse which jeopardize our military families’ precious healthcare resources.”

Curant Health Georgia LLC and Curant Health Florida LLC, which are owned by Patrick Dunham, Scott Zepp, Marc O’Connor, and Pankajkumar Patel (collectively “Curant”), dispensed compound pain creams and scar creams to TRICARE beneficiaries. TRICARE provides health insurance to members of the military and their families. In order to keep costs down, TRICARE prohibits pharmacies from charging more than their “usual and customary” price, which is defined as the retail price of the medication in a cash transaction.  Despite this prohibition, the government alleges that between 2013 and 2015, Curant charged TRICARE a much higher price for its compound creams than it offered to its cash-paying patients.

The government further alleges that, between 2013 and 2015, Curant paid kickbacks to a third-party marketer to arrange for doctors to send prescriptions to Curant, it waived patient copayments in an effort to drive up its sales, it submitted claims to TRICARE for compound creams that were not medically necessary, and it failed to return overpayments that it had received from TRICARE once it learned of them.

This civil settlement resolves a lawsuit filed in the U.S. District Court for the Northern District of Georgia by Dennis Long, a former pharmacist at Curant’s Georgia pharmacy, under the qui tam, or whistleblower provisions, of the False Claims Act. United States ex rel. Long v. Curant Health Georgia, LLC, et al., Civil Action No. 1:19-CV-3954-AT.  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. Mr. Long will receive $805,000 from the settlement. Curant will also pay his attorney’s fees.

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

This case was investigated by the U.S. Attorney’s Office for the Northern District of Georgia, the Defense Criminal Investigative Service, and the FBI.

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

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

ATLANTA - Jaime Cruz Duarte, Rito Armando Torres Gutierrez, and Antonio Penaloza Torres have been charged with federal offenses including conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime.

“The trafficking and production of methamphetamine - particularly in such a great quantity – threatens our community,” said Acting U.S. Attorney Kurt R. Erskine. “We and our federal, state and local law enforcement partners are working tirelessly to combat that threat and keep these dangerous drugs and the crime associated with them from ruining lives.”

“This seizure and the charges these methamphetamine dealers now face exemplifies the clear and present danger that poisonous drugs like ‘meth’ pose to our communities,” said the Special Agent in Charge of the DEA Atlanta Field Division Robert J. Murphy. “Because of the collective efforts between DEA and its law enforcement partners, these drugs are now off the streets and these defendants are facing prosecution.”

“The dangerousness of this type of methamphetamine production and distribution cannot be overstated,” said Dan R. Salter, Executive Director, Atlanta-Carolinas High Intensity Drug Trafficking Area (HIDTA). “The federal and local law enforcement officers that make up this task force are dedicated to stopping that danger and keeping this community safe from the criminal organizations that are involved in spreading this poison.”

According to Acting U.S. Attorney Erskine, the indictment, and other information presented in court: law enforcement officers first became aware of these defendants when Atlanta-Carolinas High Intensity Drug Trafficking Area (HIDTA) DEA Agents and Task Force Officers arranged a controlled purchase of methamphetamine from a suspected drug broker.

On September 30, 2021, the broker directed an undercover officer posing as a drug buyer to an address in Ellenwood Georgia, where the undercover officer encountered Jaime Cruz Duarte. Duarte provided the officer with approximately one kilogram of methamphetamine. He was then observed returning to a nearby residence.

Shortly thereafter, Rito Armando Torres Gutierrez and Antonio Penaloza Torres were observed leaving the same residence. After further investigation the same day, investigators obtained and executed a search warrant for the residence.

Upon searching the residence, investigators discovered a methamphetamine conversion lab, and seized over 221 kilograms of methamphetamine in various stages of production throughout the house. Agents also seized a handgun from the residence. Evidence obtained from the house indicates that the defendants lived at the residence and were allegedly involved in the production and distribution of large amounts of methamphetamine and the transfer of money obtained through methamphetamine distribution to other members of the conspiracy in other locations including California and Mexico.

Jaime Cruz Duarte, 34, Rito Armando Torres Gutierrez, 22, and Antonio Penaloza Torres, 38, of Ellenwood, Georgia, were indicted on October 19, 2021.  All three defendants have been federally detained pending trial.  Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.

This case is being investigated by the Drug Enforcement Administration and the Atlanta-Carolinas High Intensity Drug Trafficking Area (HIDTA) Task Force.

Special Assistant U.S. Attorney Zachary S. Howard is prosecuting the case.

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

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