Northern District of Georgia

ROME, Ga. - Shane Terhune has been sentenced for selling heroin to a young couple in July 2018, having admitted that his act of distribution resulted in the overdose death of the woman. This sentence follows the August 2021 sentencing of Cornelius Brown, who received a five-year term of imprisonment for distributing $150 worth of heroin. As part of his guilty plea, Cornelius Brown admitted that he also sold fentanyl in June 2018 that resulted in the death of a man who used the lethal drug.

“Terhune and Brown both profited by trafficking in deadly opioids that tragically ended two lives,” said Acting U.S. Attorney Kurt R. Erskine. “These dangerous narcotics are killing and catastrophically injuring users at unprecedented rates. This case and other recent cases demonstrate that opioid overdoses will be investigated and prosecuted as a federal priority and those who sell this poison will be held accountable for the death and suffering that it causes.”

“The life of a young lady abruptly ended when Shane Terhune sold her a deadly dose of heroin,” said the Special Agent in Charge of the DEA Atlanta Field Division Robert J. Murphy. “DEA and its law enforcement partners are committed to bringing to justice defendants like Terhune who pollute our streets with dangerous and deadly substances that cause immeasurable damage to our communities.”

“Our country has suffered the loss of literally thousands of citizens from the use and abuse of fentanyl and unfortunately Rome is not exempt. Law enforcement and the US Attorney’s office in North Georgia are committed to bringing justice to those preying on our communities,” said Dan R. Salter, Executive Director, Atlanta-Carolinas High Intensity Drug Trafficking Area (HIDTA).

According to Acting U.S. Attorney Erskine, the charges and other information presented in court regarding the sentencing of Shane Terhune: On July 6, 2018, officers with the Floyd County Police Department responded to a 911 call seeking medical attention for 25-year-old G.L., who died of a heroin overdose that night. The investigation revealed that earlier that afternoon, Terhune met G.L. and her fiancé on Oleary Lane near U.S. Route 411 in Rome and gave them a plastic bag containing heroin in exchange for cash. G.L. subsequently injected the heroin Terhune sold, causing her death. Terhune, who has a history of drug trafficking offenses, admitted to trafficking in heroin and acknowledged that the heroin he sold caused the victim’s death.

The charges and other information presented in court regarding the sentencing of Cornelius Brown: On May 31, 2017, Brown sold a clear plastic bag containing a substance that he knew to be heroin in exchange for $150 in Rome, Georgia. The following year, on the morning of June 25, 2018, Brown met an individual at a Circle K gas station in Rome, where Brown sold him a bag of powder that he knew contained a narcotic in exchange for cash. Upon purchasing the powder, the customer entered the Circle K bathroom, where he injected the drugs he purchased from Brown, resulting in his death. The substance Brown sold to the decedent was fentanyl, a dangerous opioid that caused the fatal overdose.

Shane Terhune, 41, of Rome, Georgia, was sentenced by U.S. District Judge Steve C. Jones to fifteen years, eight months in prison to be followed by three years of supervised release after pleading guilty to the charge of distributing heroin on July 2, 2021.

Cornelius Brown, 38, also of Rome, Georgia, was sentenced to five years in prison to be followed by ten years of supervised release after he pleaded guilty to the charge of distributing heroin on January 7, 2021.

These cases were investigated by the Drug Enforcement Administration and the DEA Rome, Georgia Post of Duty, Atlanta-Carolinas High Intensity Drug Trafficking Area (HIDTA) Task Force, with valuable assistance by the Rome/Floyd Metro Task Force, the Rome Police Department, the Floyd County Sheriff’s Office, the Floyd County Police Department, and the Georgia Bureau of Investigation.

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

Assistant U.S. Attorney Irina Dutcher prosecuted the case against Shane Terhune. Assistant U.S. Attorneys Irina Dutcher and David O’Neal prosecuted the case against Cornelius Brown.

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

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

ATLANTA, Ga. – Lewis Mobley has been sentenced to federal prison for his role as an enforcer for the Gangster Disciples gang, including shooting a minor in the chest twice for interrupting the filming of a gang rap video.

“For decades, the Gangster Disciples have destroyed communities all across the United States. The gang’s criminal activity in Atlanta included the killing of innocent people, brazen shootings, and prolific drug-trafficking,” said Acting U.S. Attorney Kurt R. Erskine.  “These horrific acts and the victims lost and injured will not soon be forgotten. Our community remains united and our law enforcement partners are committed to making sure this type of crippling criminal activity is met with our best investigative and prosecutorial effort. We understand that the sentences issued in this case will not mend the hearts of those who lost loved ones to the crimes of the Gangster Disciples, but we do believe they will make our community safer.”

“These sentences are a major achievement in our fight against gang violence,” said Assistant Attorney General Kenneth A. Polite Jr. for the Justice Department’s Criminal Division. “The Gangster Disciples have ravaged communities across the nation, but now dozens of their leaders and enforcers are off the streets thanks to the extraordinary devotion of our federal, state, and local law enforcement partners.”

“The Gangster Disciples have wreaked havoc in our neighborhoods for far too long with the drug trafficking, thefts, violent assaults and murders they have committed,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Mobley is the last of many members of the ruthless gang to be sentenced as a part of this investigation by the FBI’s Safe Streets Gang Task Force and its state and local partners. We are all committed to dismantling these organized and violent criminal enterprises in order to make Atlanta and all of our communities safer for our citizens.”

“This investigation into the Gangster Disciples demonstrated the commitment on the part of the DeKalb County Police Department to ensure that our communities within DeKalb County remain a safe place to live, work and raise their families. Utilizing firearms to injure or intimidate others cannot be tolerated and there is no question that the public is safer today because of the hard work, dedication, and collaboration of all agencies involved in this investigation,” said DeKalb County Police Chief Mirtha V. Ramos.

“The convictions of Lewis Mobley and other defendants sends a resounding message to gang members around the country that gang activity will not be tolerated in Atlanta,” said Atlanta Police Chief Rodney Bryant. “The Atlanta Police Department is proud of the effort put forth by our investigators to bring these criminals to justice. The sentencing of these gang members proves the effectiveness of our law enforcement partnerships work.”

The Gangster Disciples are a national gang with roots in Chicago, Illinois, dating back to the 1970s, and are now active in at least 25 states. The Gangster Disciples brought money into the gang through, among other things, drug trafficking, robbery, carjacking, extortion, wire fraud, credit card fraud, insurance fraud and bank fraud. The gang protected its power and operation through threats, intimidation, and violence, including murder, attempted murder, assault, and obstruction of justice. It also promoted the Gangster Disciples enterprise through member-only activities, including conference calls, celebrations of the birthday of the Gangster Disciples founder, the annual Gangster Ball, award ceremonies, and other events.

The gang was highly structured, with a hierarchy of leadership posts known as “Positions of Authority” or “POAs.” Members were organized into different positions, including board members and governor-of-governors who each controlled geographic regions; governors, assistant governors, chief enforcers, and chief of security for each state where Gangster Disciples were active; and coordinators and leaders within each local group.

The gang strictly enforces rules for its members, the most important of which was “Silence and Secrecy” – a prohibition on cooperating with law enforcement. To enforce discipline among Gangster Disciples and adherence to the strict rules and structure, members and associates were routinely fined, beaten, and even murdered, for failing to follow rules.

At trial, the government presented evidence that the Gangster Disciples were responsible for 25 shootings from 2011 through 2015, including eight murders, multiple robberies, the extortion of rap artists to force the artists to become affiliated with the Gangster Disciples, fraud losses of over $450,000, and the trafficking of in large amounts of heroin, cocaine, methamphetamine, illegal prescription drugs, and marijuana. Additionally, through trial and pleas, a total of 33 different firearms were forfeited.

In total, 38 defendants have been sentenced in the case, which a federal grand jury indicted on April 27, 2016, and then superseded to add defendants on Oct. 24, 2018. Convicted defendants include the highest ranks of Gangster Disciples leaders from Alabama, Colorado, Georgia, Kansas, Illinois, Michigan, Wisconsin, and California. Those sentenced by the Court include:

• Donald Glass, 31, of Decatur, Georgia, the leader of HATE Committee, a Gangster Disciples “enforcement team,” was sentenced to life plus ten years in prison after a trial jury found him guilty of RICO conspiracy and using a firearm to cause death.
• Lewis Mobley, 45, of Atlanta, Georgia, a Gangster Disciple enforcer, was sentenced to 40 years in prison after a trail jury found him guilty of RICO conspiracy, attempted murder in aid of racketeering, and using a firearm during that attempted murder.
• Shauntay Craig, 43, of Birmingham, Alabama, who held the rank of Gangster Disciples “Board Member,” was sentenced to 40 years in prison after pleading guilty to RICO conspiracy.
• Kevin Clayton, 48, of Decatur, Georgia, the chief enforcer of the Gangster Disciples in Georgia, was sentenced to 33 years in prison after a trial jury convicted him of RICO conspiracy.
• Alonzo Walton, 52, of Atlanta, Georgia, who held different position including overseeing the gang in Georgia, Florida, Texas, Indiana, and South Carolina, was sentenced to 32 years in prison after a trial jury found him guilty of RICO conspiracy, carjacking, and using a firearm in connection of that carjacking.
• Vertuies Wall, 45, of Marietta, Georgia, the leader of the Macon branch of the Gangster Disciples, was sentenced to 30 years in prison after a trial jury found him guilty of RICO conspiracy.
• Antarious Caldwell, 28, of Atlanta, Georgia, a Gangster Disciples HATE Committee member, was sentenced to 30 years in prison after a trial jury found him guilty of RICO conspiracy, robbery, and using a firearm in connection with that robbery.
• Mario Jackson, 39, of Jacksonville, Florida, the gang “governor” of Florida, was sentenced to 22 years in prison after pleading guilty to RICO conspiracy.
• Lawrence Grice, 32, of Bay City, Texas, the gang “overseer” for Texas, was sentenced to 21 years, 10 months in custody, after a trial jury found him guilty of RICO conspiracy and illegal drug distribution.
• Mangwiro Sadiki-Yisrael, 48, of Marietta, Georgia, who held different positions including gang “governor” of Georgia, was sentenced to 20 years in prison and ordered to pay $396,942.46 in restitution to victims based on his fraud conduct, after pleading guilty to RICO conspiracy. 
• Damien Madison, 34, of Denver, Colorado, the gang “governor” of Colorado, was sentenced to 19 years, seven months, after pleading guilty to RICO conspiracy.
• Vancito Gumbs, 29, of Stone Mountain, Georgia, a member of the Gangster Disciples while at the same time serving as a police officer with the DeKalb County, Georgia Police Department, who provided sensitive information to the Gangster Disciples and claimed to be a hitman for them, was sentenced to 15 years in prison after a trial jury found him guilty of RICO conspiracy. 
• Frederick Johnson, 44, of Marietta, Georgia, a Gangster Disciples member who sold drugs with other gang members, was sentenced to 12 years in prison after pleading guilty to RICO conspiracy.
• Antonio Ahmad, 39, of Atlanta, Georgia, the “chief of security” for senior gang leaders in Georgia, was sentenced to 15 years in prison after pleading guilty to RICO conspiracy.
• Roy Farrell, deceased, of Hattiesburg, Mississippi, a former Gangster Disciples “board member,” was sentenced to 12 years, six months in prison after pleading guilty RICO conspiracy.
• Jeremiah Covington, 38, of Valdosta, Georgia, a local leader for the Valdosta region Gangster Disciples, was sentenced to 11 years, three months in prison after pleading guilty to RICO conspiracy.
• Dereck Taylor, 35, who provided security to Macon, Georgia gang leadership, was sentenced to 10 years in prison after pleading guilty to RICO conspiracy.
• James Travis Riley, 40, of Coffeyville, Kansas, the gang “governor” of Kansas, was sentenced to 10 years in prison after pleading guilty to conspiring to distribute illegal drugs.
• Nicholas Evans, 32, of Newport Beach, California, was sentenced to 10 years in prison after pleading guilty to conspiring to distribute illegal drugs.
• Ronald McMorris, 39, of Atlanta, Georgia, a local leader of the Atlanta Gangster Disciples, was sentenced to nine years in prison and ordered to pay $10,345.00 in restitution to victims after pleading guilty to RICO conspiracy.
• Markell White, 48, of Atlanta, Georgia, a regional leader in Macon, Georgia, was sentenced to eight years, nine months in prison after pleading guilty to RICO conspiracy.
• Eric Manney, 38, of Atlanta, Georgia, a Gangster Disciples’ member who stored narcotics and multiple guns at his house, was sentenced to eight years, one month in prison after pleading guilty to RICO conspiracy.
• Terrance Summers, 48, of Birmingham, Alabama, the gang governor for Alabama, was sentenced to eight years in prison after pleading guilty to RICO conspiracy.
• Alvis O’Neal, 43, of Denver, Colorado, a drug trafficker for the Gangster Disciples, was sentenced to seven years, six months in custody after pleading guilty to RICO conspiracy.
• Condelay Abbitt, 37, of Hoover, Alabama, a Gangster Disciples member who transported illegal drugs for the gang, was sentenced to seven years, three months in prison after pleading guilty to RICO conspiracy.
• Adrian Jackson, 42, of San Jose, California, the national treasurer for the Gangster Disciples, was sentenced to seven years in prison after pleading guilty to RICO conspiracy.
• Charles Wingate, 31, of Conyers, Georgia, a local leader for the Gangster Disciples in Covington, Georgia who sold drugs with the gang, was sentenced to six years, nine months in prison after pleading guilty to RICO conspiracy.
• Quiana Franklin, 38, of Birmingham, Alabama, a Gangster Disciples’ member who stored drugs for gang leader Shauntay Craig, was sentenced to four years, nine months in prison after pleading guilty to RICO conspiracy.
• Anthony Blaine, 39, of Dallas, Georgia, a Gangster Disciples member who engaged in fraud for the gang, was sentenced to three years, five months in prison and ordered to pay $64,234.29 in restitution to victims, after pleading guilty to RICO conspiracy.
• Myrick Stevens, 32, of Madison, Wisconsin, a Gangster Disciples member who engaged in fraud for the gang, was sentenced to three years, five months in prison and ordered to pay $8,700.00 in restitution to victims, after pleading guilty to RICO conspiracy.
• Thomas Pasby, 47, of Cochran, Georgia, a Gangster Disciples member who engaged in fraud for the gang, was sentenced to two years, six months in prison and ordered to pay $83,918.56 in restitution to victims after pleading guilty to RICO conspiracy.
• Laderris Dickerson, 51, of Hartselle, Alabama, who orchestrated a carjacking with senior Gangster Disciples members, was sentenced to two years, six months in prison after pleading guilty to federal carjacking.
• Carlton King, Jr., 31, of Cochran, Georgia, a Gangster Disciples member who engaged in fraud for the gang, was sentenced to two years in prison and ordered to pay $5,897.88 in restitution to victims, after pleading guilty to RICO conspiracy.
• Michael Drummond, 54, of Marietta, Georgia, a Gangster Disciples member who engaged in fraud for the gang, was sentenced to two years in prison and ordered to pay $3,677.00 in restitution to victims, after pleading guilty to RICO conspiracy.
• Curtis Thomas, 44, of Cochran, Georgia, a Gangster Disciples member who engaged in fraud for the gang, was sentenced to one year, nine months in prison and ordered to pay $59,521.90 in restitution to victims, after pleading guilty to RICO conspiracy.
• Kelvin Sneed, 33, of Cochran, Georgia, a Gangster Disciples member who engaged in fraud for the gang, was sentenced to one year, six months in prison and ordered to pay $24,417.89 in restitution to victims, after pleading guilty to RICO conspiracy.
• Arrie Freeney, 37, of Detroit, Michigan, a Gangster Disciples member who engaged in fraud for the gang, was sentenced to one year, one day in prison and ordered to pay $25,641.36 in restitution to victims, after pleading guilty to RICO conspiracy.
• Denise Carter, 47, of Detroit, Michigan, a Gangster Disciples member who engaged in fraud for the gang, was sentenced to eight months of home confinement and three years of probation and ordered to pay $7,938.45 in restitution to victims, after pleading guilty to RICO conspiracy.

These cases were investigated by the Federal Bureau of Investigation, U.S. Marshals Service, The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), U.S. Postal Inspection Services, Internal Revenue Service Criminal Investigation, the Federal Bureau of Prisons, Atlanta Police Department, Fulton County Sheriff’s Office, Clayton County Police Department, DeKalb County District Attorney’s Office, DeKalb Police Department, Georgia Dept. of Community Supervision, Georgia Dept. of Corrections, Gwinnett County Police Department, and the Marietta Police Department.

Assistant U.S. Attorneys Ryan Buchanan, Erin Spritzer, and Stephanie Gabay-Smith of the Northern District of Georgia, Principal Deputy Chief Kim S. Dammers, Trial Attorneys Conor Mulroe, and Hans Miller of the Justice Department’s Organized Crime and Gang 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.

Lewis Mobley, 45, of Atlanta, Georgia, was sentenced Tuesday to 40 years in prison for his role as an enforcer for the Gangster Disciples gang, including shooting a minor in the chest twice for interrupting the filming of a gang rap video.

“These sentences are a major achievement in our fight against gang violence,” said Assistant Attorney General Kenneth A. Polite Jr. for the Justice Department’s Criminal Division. “The Gangster Disciples have ravaged communities across the nation, but now dozens of their leaders and enforcers are off the streets thanks to the extraordinary devotion of our federal, state and local law enforcement partners.”

“For decades, the Gangster Disciples have destroyed communities all across the United States,” said Acting U.S. Attorney Kurt R. Erskine for the Northern District of Georgia. “The gang’s criminal activity in Atlanta included the killing of innocent people, brazen shootings, and prolific drug-trafficking. These horrific acts and the victims lost and injured will not soon be forgotten. Our community remains united and our law enforcement partners are committed to making sure this type of crippling criminal activity is met with our best investigative and prosecutorial effort. We understand that the sentences issued in this case will not mend the hearts of those who lost loved ones to the crimes of the Gangster Disciples, but we do believe they will make our community safer.”

“The Gangster Disciples have wreaked havoc in our neighborhoods for far too long with the drug trafficking, thefts, violent assaults and murders they have committed,” said Special Agent in Charge Chris Hacker of FBI's Atlanta Field Office. “Mobley is the last of many members of the ruthless gang to be sentenced as a part of this investigation by the FBI’s Safe Streets Gang Task Force and its state and local partners. We are all committed to dismantling these organized and violent criminal enterprises in order to make Atlanta and all of our communities safer for our citizens.”

“These gang members committed a number of heinous crimes including murder, and this sentence ensures the final defendant was held accountable for his actions,” said Assistant Director Calvin Shivers of the FBI’s Criminal Investigative Division. “This verdict shows the FBI is firmly committed to putting violent offenders behind bars and dismantling criminal enterprises across the country in order to make our communities safe from violent street gangs.”

In total, 38 defendants have been sentenced in the case, which a federal grand jury indicted on April 27, 2016, and then superseded to add defendants on Oct. 24, 2018. Convicted defendants include the highest ranks of Gangster Disciples leaders from Alabama, Colorado, Georgia, Kansas, Illinois, Michigan, Wisconsin and California.

The Gangster Disciples are a national gang with roots in Chicago, Illinois, dating back to the 1970s, and are now active in at least 25 states. The Gangster Disciples brought money into the gang through, among other things, drug trafficking, robbery, carjacking, extortion, wire fraud, credit card fraud, insurance fraud and bank fraud. The gang protected its power and operation through threats, intimidation and violence, including murder, attempted murder, assault and obstruction of justice. It also promoted the Gangster Disciples enterprise through member-only activities, including conference calls, celebrations of the birthday of the Gangster Disciples founder, the annual Gangster Ball, award ceremonies and other events.

The gang was highly structured, with a hierarchy of leadership posts known as “Positions of Authority” or “POAs.” Members were organized into different positions, including board members and governor-of-governors who each controlled geographic regions; governors, assistant governors, chief enforcers and chief of security for each state where Gangster Disciples were active; and coordinators and leaders within each local group.

The gang strictly enforces rules for its members, the most important of which was “silence and secrecy” – a prohibition on cooperating with law enforcement. To enforce discipline among Gangster Disciples and adherence to the strict rules and structure, members and associates were routinely fined, beaten and even murdered, for failing to follow rules.

At trial, the government presented evidence that the Gangster Disciples were responsible for 25 shootings from 2011 through 2015, including eight murders, multiple robberies, the extortion of rap artists to force the artists to become affiliated with the Gangster Disciples, fraud losses of over $450,000, and the trafficking of large amounts of heroin, cocaine, methamphetamine, illegal prescription drugs and marijuana. Additionally, through trial and pleas, a total of 33 different firearms were forfeited.

Those sentenced by the court include:

• Donald Glass, 31, of Decatur, Georgia, the leader of HATE Committee, a Gangster Disciples “enforcement team,” was sentenced to life plus 10 years in prison after a trial jury found him guilty of RICO conspiracy and using a firearm to cause death.
• Lewis Mobley, 45, of Atlanta, Georgia, a Gangster Disciple enforcer, was sentenced to 40 years in prison after a trail jury found him guilty of RICO conspiracy, attempted murder in aid of racketeering, and using a firearm during that attempted murder.
• Shauntay Craig, 43, of Birmingham, Alabama, who held the rank of Gangster Disciples Board Member, was sentenced to 40 years in prison after pleading guilty to RICO conspiracy.
• Kevin Clayton, 48, of Decatur, Georgia, the chief enforcer of the Gangster Disciples in Georgia, was sentenced to 33 years in prison after a trial jury convicted him of RICO conspiracy.
• Alonzo Walton, 52, of Atlanta, Georgia, who held different positions including overseeing the gang in Georgia, Florida, Texas, Indiana and South Carolina, was sentenced to 32 years in prison after a trial jury found him guilty of RICO conspiracy, carjacking and using a firearm in connection of that carjacking.
• Vertuies Wall, 45, of Marietta, Georgia, the leader of the Macon branch of the Gangster Disciples, was sentenced to 30 years in prison after a trial jury found him guilty of RICO conspiracy.
• Antarious Caldwell, 28, of Atlanta, Georgia, a Gangster Disciples HATE Committee member, was sentenced to 30 years in prison after a trial jury found him guilty of RICO conspiracy, robbery, and using a firearm in connection with that robbery.
• Mario Jackson, 39, of Jacksonville, Florida, the gang “governor” of Florida, was sentenced to 22 years in prison after pleading guilty to RICO conspiracy.
• Lawrence Grice, 32, of Bay City, Texas, the gang “overseer” for Texas, was sentenced to 21 years and 10 months in custody, after a trial jury found him guilty of RICO conspiracy and illegal drug distribution.
• Mangwiro Sadiki-Yisrael, 48, of Marietta, Georgia, who held different positions including gang “governor” of Georgia, was sentenced to 20 years in prison and ordered to pay $396,942.46 in restitution to victims based on his fraud conduct, after pleading guilty to RICO conspiracy.
• Damien Madison, 34, of Denver, Colorado, the gang “governor” of Colorado, was sentenced to 19 years and seven months, after pleading guilty to RICO conspiracy.
• Vancito Gumbs, 29, of Stone Mountain, Georgia, a member of the Gangster Disciples while at the same time serving as a police officer with the DeKalb County, Georgia Police Department, who provided sensitive information to the Gangster Disciples and claimed to be a hitman for them, was sentenced to 15 years in prison after a trial jury found him guilty of RICO conspiracy.
• Frederick Johnson, 44, of Marietta, Georgia, a Gangster Disciples member who sold drugs with other gang members, was sentenced to 12 years in prison after pleading guilty to RICO conspiracy.
• Antonio Ahmad, 39, of Atlanta, Georgia, the chief of security for senior gang leaders in Georgia, was sentenced to 15 years in prison after pleading guilty to RICO conspiracy.
• Roy Farrell, deceased, of Hattiesburg, Mississippi, a former Gangster Disciples board member, was sentenced to 12 years and six months in prison after pleading guilty RICO conspiracy.
• Jeremiah Covington, 38, of Valdosta, Georgia, a local leader for the Valdosta region Gangster Disciples, was sentenced to 11 years and three months in prison after pleading guilty to RICO conspiracy.
• Dereck Taylor, 35, who provided security to Macon, Georgia gang leadership, was sentenced to 10 years in prison after pleading guilty to RICO conspiracy.
• James Travis Riley, 40, of Coffeyville, Kansas, the gang “governor” of Kansas, was sentenced to 10 years in prison after pleading guilty to conspiring to distribute illegal drugs.
• Nicholas Evans, 32, of Newport Beach, California, was sentenced to 10 years in prison after pleading guilty to conspiring to distribute illegal drugs.
• Ronald McMorris, 39, of Atlanta, Georgia, a local leader of the Atlanta Gangster Disciples, was sentenced to nine years in prison and ordered to pay $10,345 in restitution to victims after pleading guilty to RICO conspiracy.
• Markell White, 48, of Atlanta, Georgia, a regional leader in Macon, Georgia, was sentenced to eight years and nine months in prison after pleading guilty to RICO conspiracy.
• Eric Manney, 38, of Atlanta, Georgia, a Gangster Disciples’ member who stored narcotics and multiple guns at his house, was sentenced to eight years and one month in prison after pleading guilty to RICO conspiracy.
• Terrance Summers, 48, of Birmingham, Alabama, the gang governor for Alabama, was sentenced to eight years in prison after pleading guilty to RICO conspiracy.
• Alvis O’Neal, 43, of Denver, Colorado, a drug trafficker for the Gangster Disciples, was sentenced to seven years and six months in custody after pleading guilty to RICO conspiracy.
• Condelay Abbitt, 37, of Hoover, Alabama, a Gangster Disciples member who transported illegal drugs for the gang, was sentenced to seven years and three months in prison after pleading guilty to RICO conspiracy.
• Adrian Jackson, 42, of San Jose, California, the national treasurer for the Gangster Disciples, was sentenced to seven years in prison after pleading guilty to RICO conspiracy.
• Charles Wingate, 31, of Conyers, Georgia, a local leader for the Gangster Disciples in Covington, Georgia who sold drugs with the gang, was sentenced to six years and nine months in prison after pleading guilty to RICO conspiracy.
• Quiana Franklin, 38, of Birmingham, Alabama, a Gangster Disciples’ member who stored drugs for gang leader Shauntay Craig, was sentenced to four years and nine months in prison after pleading guilty to RICO conspiracy.
• Anthony Blaine, 39, of Dallas, Georgia, a Gangster Disciples member who engaged in fraud for the gang, was sentenced to three years and five months in prison and ordered to pay $64,234.29 in restitution to victims, after pleading guilty to RICO conspiracy.
• Myrick Stevens, 32, of Madison, Wisconsin, a Gangster Disciples member who engaged in fraud for the gang, was sentenced to three years and five months in prison and ordered to pay $8,700 in restitution to victims after pleading guilty to RICO conspiracy.
• Thomas Pasby, 47, of Cochran, Georgia, a Gangster Disciples member who engaged in fraud for the gang, was sentenced to two years and six months in prison and ordered to pay $83,918.56 in restitution to victims after pleading guilty to RICO conspiracy.
• Laderris Dickerson, 51, of Hartselle, Alabama, who orchestrated a carjacking with senior Gangster Disciples members, was sentenced to two years and six months in prison after pleading guilty to federal carjacking.
• Carlton King Jr., 31, of Cochran, Georgia, a Gangster Disciples member who engaged in fraud for the gang, was sentenced to two years in prison and ordered to pay $5,897.88 in restitution to victims, after pleading guilty to RICO conspiracy.
• Michael Drummond, 54, of Marietta, Georgia, a Gangster Disciples member who engaged in fraud for the gang, was sentenced to two years in prison and ordered to pay $3,677 in restitution to victims, after pleading guilty to RICO conspiracy.
• Curtis Thomas, 44, of Cochran, Georgia, a Gangster Disciples member who engaged in fraud for the gang, was sentenced to one year and nine months in prison and ordered to pay $59,521.90 in restitution to victims, after pleading guilty to RICO conspiracy.
• Kelvin Sneed, 33, of Cochran, Georgia, a Gangster Disciples member who engaged in fraud for the gang, was sentenced to one year and six months in prison and ordered to pay $24,417.89 in restitution to victims, after pleading guilty to RICO conspiracy.
• Arrie Freeney, 37, of Detroit, Michigan, a Gangster Disciples member who engaged in fraud for the gang, was sentenced to one year and a day in prison and ordered to pay $25,641.36 in restitution to victims, after pleading guilty to RICO conspiracy.
• Denise Carter, 47, of Detroit, Michigan, a Gangster Disciples member who engaged in fraud for the gang, was sentenced to eight months of home confinement and three years of probation and ordered to pay $7,938.45 in restitution to victims, after pleading guilty to RICO conspiracy.

The FBI, U.S. Marshals Service, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), U.S. Postal Inspection Services, IRS-Criminal Investigation, the Federal Bureau of Prisons, Atlanta Police Department, Fulton County Sheriff’s Office, Clayton County Police Department, DeKalb County District Attorney’s Office, DeKalb Police Department, Georgia Dept. of Community Supervision, Georgia Department of Corrections, Gwinnett County Police Department, and Marietta Police Department investigated the case.

Principal Deputy Chief Kim S. Dammers and Trial Attorneys Conor Mulroe and Hans Miller of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Ryan Buchanan, Erin Spritzer, and Stephanie Gabay-Smith of the Northern District of Georgia prosecuted the case.

ATLANTA – Former Georgia Insurance Commissioner Jim Beck has been sentenced to federal prison following his conviction for stealing more than $2,500,000 from the Georgia Underwriting Association (GUA).

“Former Commissioner Beck has been held accountable for taking advantage of his position of trust at the GUA, stealing millions of dollars from his employer, and then defrauding the IRS,” said Acting U.S. Attorney Kurt R. Erskine.  “At the time he was charged with these offenses in 2019, he was the newly elected Georgia Insurance Commissioner.  Thankfully, the FBI and IRS uncovered these crimes before Beck got the chance to do even more damage as a statewide public official.”

“Beck’s actions were full of greed and selfishness as he took complete advantage of his employer (GUA) and friends who held him in a high position of trust,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “This sentencing should serve as a warning that no matter how elaborate a scheme, the FBI and our partners will use all resources necessary to hold deceitful individuals accountable for their actions and bring them to justice.”

“Beck abused his position as the General Manager of Operations for the GUA while engaging in a series of fraudulent transactions devised to siphon funds from a worthwhile organization.  IRS Criminal Investigation is proud to have assisted our partners in unraveling the fraud actions undertaken by Beck for his personal benefit,” said James E. Dorsey, Special Agent in Charge, IRS Criminal Investigation Atlanta Field Office.  “Pooling the skills of each agency makes a formidable team as we investigate allegations of wrong-doing.  This sentencing demonstrates our collective efforts to enforce the law and ensure public trust.”

According to Acting U.S. Attorney Erskine, the charges and other information presented in court: From January 2012 until Beck was sworn in as Insurance Commissioner on January 14, 2019, Beck worked as the General Manager of Operations for the GUA after being elected to that post by the GUA board of directors.  GUA, located in Suwanee, Georgia, is an insurance association created as part of the Georgia Fair Access to Insurance Requirements (FAIR) law to provide high-risk property insurance to homeowners located throughout Georgia.  In addition to premiums collected from its customers, GUA is also funded by issuing assessments to the association members, which include every insurer authorized to write any form of property insurance in Georgia.

While Beck served as General Manager of GUA, he also maintained controlling financial interests in two businesses known as Creative Consultants and the GA Christian Coalition.  Beginning in 2013, Beck talked four associates—all of whom were either friends or family members--into forming four separate businesses that supposedly supplied necessary services, including residential property inspections and water damage mitigation, to GUA.  Then, through an elaborate system of fraudulent invoicing which included producing false documentation and concealing the truth from his four associates, Beck regularly approved substantial GUA payments to the four companies.  Beck then prepared fraudulent invoices from Creative Consultants and GA Christian Coalition for services that were never performed, and, at Beck’s direction, his four associates paid the fraudulent invoices from the money they had been paid from GUA.  Between February 2013 and August 2018, Beck stole more than $2,500,000 from GUA.

Beck was also sentenced for his convictions on four counts of tax fraud for filing false federal income tax returns for the years 2014 through 2018.  Beck's tax returns for those years were fraudulent because they substantially overstated business expenses and substantially understated business profits for Beck's Creative Consultants and GA Christian Coalition.  The tax loss to the IRS was more than $350,000.

Jim C. Beck, 60, of Carrolton, Georgia, has been sentenced to seven years, three months in prison to be followed by three years of supervised release, ordered to pay restitution in an amount over $2,619,000 and forfeiture of over $426,000, two pieces of real property and a $2,064.781.85 personal forfeiture money judgment.  Beck was found guilty by a jury on July 22, 2021.

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

Assistant U.S. Attorneys Brent Alan Gray and Sekret T. Sneed 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 - Robert Whitley, and his daughter Noni Whitley, have been sentenced to federal prison for selling millions of dollars of stolen retail products through their online businesses, Closeout Express and Essentials Daily Discounts.

“These crimes impact not only the retailers, but every consumer,” said Acting U.S. Attorney Kurt R. Erskine. “Organized retail crime and other massive frauds have become more common through online platforms.  We and our law enforcement partners will continue to seek out and prosecute these criminal enterprises.”

“The Whitley’s are now paying the price for inflicting financial harm to legitimate small businesses and consumers affected by those businesses losses,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI and our law enforcement partners are committed to working together to protect consumers and businesses from these types of crimes.”

“Postal Inspectors will continue to vigorously pursue individuals that are driven by their own insatiable greed and also demonstrate a blatant disregard for the economic impact that can occur,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division. “This sentence is the culmination of a successful joint investigative effort to dismantle an ongoing retail crime ring and continue to ensure the integrity of the mail system.”

According to Acting U.S. Attorney Erskine, the charges and other information presented in court: Between approximately January 2011 and November 2019, Robert and Noni Whitley operated an organized retail crime operation (“ORC”) in Atlanta through several entities, including Closeout Express and Essentials Daily Discounts.

An ORC operation refers to a professional shoplifting, cargo theft, or retail crime ring, or other organized crime occurring in a retail environment. Robert Whitley was the owner and operator of Closeout Express. Noni Whitley worked with her father and helped operate and manage their ORC operation.

Closeout Express and Essential Daily Discounts operated from a warehouse and several residences in Atlanta. The defendants relied on “boosters”—who are essentially professional shoplifters—to steal specific retail products or categories of items, including over-the-counter medications (e.g., Prilosec, Nexium, Rogaine, and Claritin), shaving razors, oral care products, and health and beauty aids. The boosters stole these products from various retailers, national drugstore chains, and national supermarket chains throughout metro Atlanta, including CVS, Kroger, Publix, Target, and Walgreens. The boosters would typically bring the stolen product in large trash bags to Closeout Express’s warehouse in southwest Atlanta. Robert and Noni Whitley paid the boosters in cash for the stolen product. The investigation revealed that Robert and Noni Whitley paid dozens of boosters to steal product over the years.

Closeout Express sold the stolen retail products—at below retail or even wholesale cost—mainly online at its own websites and through various online e-commerce platforms, including the Amazon Marketplace, the Walmart Marketplace, and the Sears Marketplace. In exchange for a monthly fee or some percentage of the sales, these platforms permit third-party sellers to establish “online storefronts” to sell new or used products on a fixed-price online marketplace alongside these companies’ regular offerings. Closeout Express established “online storefronts” on each of these marketplaces to sell the stolen retail product. Specifically, Closeout Express operated an online storefront on the Amazon Marketplace from approximately January 2011 until July 2018. During that time, Closeout Express sold more than 140,000 items through this storefront. With respect to the Walmart and Sears Marketplaces, Closeout Express operated online storefronts beginning in September 2017 and December 2014, respectively. Through these two online storefronts, Closeout Express processed more than 30,000 orders.

In November 2019, after an investigation, law enforcement shut down the Whitleys’ operation. That month, the FBI and U.S. Postal Inspection Service executed multiple search warrants at Closeout Express’s southwest Atlanta warehouse and multiple residences connected to Robert and Noni Whitley. These locations had been used to sort, store, and process the stolen retail product (e.g., to “clean” the items of identifying information or anti-theft devices). Among other evidence of the ORC operation, agents recovered more than $1 million in stolen retail product.

While in operation, Robert and Noni Whitley sold stolen retail product valued at more than $6.1 million through Closeout Express and Essential Daily Discounts across the various e-commerce platforms. Robert Whitley and Noni Whitley also sold hundreds of thousands of dollars of stolen product through Essential Daily Discounts’ own website.

On October 5, 2021, the defendants were sentenced by U.S. District Judge J.P. Boulee, to the following:

• Robert Whitley a/k/a Mr. Bob, 70, of Atlanta, Georgia, was sentenced to five years, ten months in prison to be followed by three years of supervised release. He previously pleaded guilty to one count of interstate transportation of stolen property.

• Noni Whitley, 47, of Atlanta, Georgia, was sentenced to five years in prison to be followed by three years of supervised release. She previously pleaded guilty to one count of conspiracy to commit interstate transportation of stolen property,

Both defendants were also ordered to pay $4,348,762.90 in restitution to the victim retailers.  

This case was investigated by the Federal Bureau of Investigation and United States Postal Inspection Service.

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 – Mark Melnick has pleaded guilty to a criminal information charging him with conspiracy to commit wire and securities fraud arising from a years-long scheme to manipulate the prices of short-term call options in large, publicly traded companies. Melnick is the second defendant to plead guilty for his participation in this scheme. In December 2020, Bart Ross also pleaded guilty to conspiracy to commit wire and securities fraud.  

“Melnick and others involved in this scheme profited not because of their financial acumen, but simply by cheating,” said Acting U.S. Attorney Kurt R Erskine. “We will prosecute all forms of securities fraud, whether it involves defrauding investors, insider trading, pump-and-dump schemes, or the type of sophisticated market manipulation at issue here.”

“Fraudulently manipulating securities may seem like a harmless crime, but there are real victims and their lives changed because of it,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI is committed to working with our law enforcement partners to stop greed driven traders like Melnick from profiting illegally.”

According to Acting U.S. Attorney Erskine, the charges and other information presented in court: Between approximately October 2017 and January 2020, Melnick, Ross, and at least three other individuals, conspired to execute a scheme in which they traded securities—primarily short-term call options—in large, publicly traded companies (often Fortune 500 companies) based on materially false rumors about those companies that they generated and disseminated. These materially false rumors were intended to drive up the price of the securities (both the underlying stock and options).

Call options are essentially a contract that gives the options’ holder the right, but not the obligation, to buy shares of the underlying stock at a set price per share—the option’s strike price—on or before a set future date (the option’s expiration date). Generally, the holder of a call option benefits when the price of the underlying stock increases. Short-term call options are ones that generally expire within a week.

Ross, who was formerly a registered broker with FINRA, and the co-conspirators generated the rumors. The conspirators would often refine a proposed rumor by exchanging drafts among themselves using the Trillian instant messaging application. Melnick was a day trader and T3 Live Senior Trading Strategist. Melnick often provided a “technical evaluation” on whether a particular false rumor would be successful. After a rumor was formulated and finalized, one of the co-conspirators, identified as Individual-1 in the criminal information, was responsible for disseminating the rumor via Trillian to multiple accounts, which would in turn result in the false rumor being disseminated over one or more market subscription services, including Trade The News, TradeXchange, and Benzinga, as well as various Twitter accounts.

Before Individual-1 disseminated the rumor, Melnick, Ross, and the other co-conspirators would acquire a position in the publicly traded company that was the subject of the materially false rumor. The co-conspirators typically purchased short-term call options before (sometimes just minutes or seconds before) Individual-1 disseminated the rumor. The conspirators often (but not always) purchased short-term call options because the price of such options is more sensitive than the price of the underlying stock. It was therefore possible for Melnick and the others to earn a greater percentage return by trading short-term call options rather than the underlying stock. Melnick and the conspirators profited from their scheme by selling the options (or other securities) after they increased in price. They would typically sell off their positions shortly after the rumor was disseminated (and after the price of the option or underlying stock had increased). Melnick also had an agreement with Individual-1 to share a portion of his profits from the scheme with Individual-1.

Melnick executed at least 102 trades based on the generation and dissemination of false rumors, including in March and April 2018, when Ross traded short-term call options in Disney and Ben Franklin Resources, respectively. Overall, Melnick earned approximately $374,000 in profits from the scheme.

Mark Melnick, 41, of Marlboro, New Jersey, is scheduled to be sentenced December 16, 2021, at 9:30 a.m. before U.S. District Judge Leigh Martin May. 

This case is being investigated by the Federal Bureau of Investigation with assistance from the Securities and Exchange Commission.

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

The SEC is investigating potential civil violations of the U.S. securities laws relating to above-described scheme. In connection with its investigation, the SEC filed a separate civil enforcement action and consent judgment against Melnick in the U.S. District Court for the Northern District of Georgia.

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

ATLANTA – Deuntrae Meshari Colley, Antonio Cooper, also known as “Antoine Cooper,” Dexter Hancock, Daeqwan Ray Jackson, also known as “Daequan Ray Jackson,” Donald Johnson, and Drashawn Mitchell, all convicted felons, have been charged with federal offenses, including possessing a firearm while being a convicted felon. These arrests resulted from coordination among federal, state, and local law enforcement agencies as part of an operation under the Project Safe Neighborhood (PSN) Program.  This operation, named “Operation Phoenix Summer Surge,” focused on the arrest and prosecution of individuals who illegally used or possessed firearms in violation of federal law and are responsible for driving violence in the City of Atlanta.   

“Federal law enforcement is building on strong partnerships with state and local law enforcement to focus on those individuals who are the drivers of violent crime in the City of Atlanta,” said Acting U.S. Attorney Kurt R. Erskine. “Through this district’s PSN program, and in collaboration with the Office of the Fulton County District Attorney, these partnerships helped to ensure that the individuals federally charged as part of this operation will remain in custody pending trial and be prevented from continuing to pose a danger to members of our community.”

“These convictions are an excellent example of how cooperation between federal, state and local law enforcement partners can make our community safer by bringing dangerous offenders to justice.  We are cooperating closely with the Acting U.S. Attorney, ATF and other federal partners to make sure felons who break the law by possessing a firearm receive a substantial prison sentence,” said Fulton County District Attorney Fani T. Willis.

“Operation Phoenix Summer Surge is the continuation of a sustained, systematic, and coordinated law enforcement initiative begun in August 2020 to fight violent crime in the City of Atlanta,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI is committed to working together with the U.S. Attorney’s Office, the Fulton County District Attorney and all of our federal, state and local partners to make these arrests because the threats we face are too diverse, too dangerous, and too all-encompassing for any of us to tackle alone.”

“ATF and our outstanding local, state and federal law enforcement partners have ensured the law-abiding citizens of this community are safer as a result of Operation Phoenix Summer Surge,” said Alcohol, Tobacco, and Firearms, Atlanta Field Division Special Agent in Charge Ben Gibbons.  “The law enforcement community has reduced a dangerous and pervasive threat to the local community of Atlanta by arresting these individuals.” 

“Getting criminals off of our streets is a priority for the Atlanta Police Department.  Our work with Operation Phoenix has proven time and time again that our partnerships are effective and making a difference,” said APD Chief Rodney Bryant. “Just knowing that these repeat offenders will be hold accountable for their actions, sends a strong message that we will find you and we will not tolerate criminal activity in our city.”

According to Acting U.S. Attorney Erskine, the charges and other information presented and alleged in court:

• On August 6, 2021, Atlanta Police Department (APD) officers encountered Deuntrae Colley, 38, of Atlanta, Georgia, who was wanted in connection with an aggravated assault. He attempted to flee from the officers and discard a backpack. Colley was apprehended and the backpack was searched, where they recovered a loaded .22 caliber revolver and a spent shell casing. Colley’s criminal history includes a robbery conviction and an incident in which he’s accused of shooting a man on MLK Drive on July 11, 2021. On September 7, 2021, a federal grand jury indicted Colley for the offense of possessing a firearm after having been convicted of a felony offense.

• On July 3, 2021, Dexter Hancock, 35, Atlanta, Georgia, was driving in the parking lot of Lenox Mall in Atlanta when he nearly collided with another motorist. Hancock pointed a loaded 9mm Taurus G2c handgun at the other motorist and members of the motorist’s family. APD officers responded to the scene and arrested Hancock. At the time of his arrest, Hancock was already on supervised release for a federal fraud offense and had been previously convicted of burglary and charged with possessing a weapon during the commission of a crime. On September 21, 2021, a federal grand jury indicted Hancock for the offense of possessing a firearm after having been convicted of a felony offense.

• On August 5, 2021, officers with the APD and Georgia State Patrol responded to a shooting that occurred on Cleveland Avenue in Atlanta. Officers on the scene encountered Daeqwan Jackson, 22, of Lithonia, Georgia, who appeared injured. Jackson informed the officers that he accidentally shot himself with a loaded Glock 30 .45 caliber firearm, loaded with a magazine, that he was carrying. While conducting a background check of Jackson, investigators discovered that recently, in 2019, Jackson was convicted of two counts of Robbery by Sudden Snatching. On August 9, 2021, Jackson was charged via a federal criminal complaint with the offense of possessing a firearm after having been convicted of a felony offense.

• On July 22, 2021, APD officers arrived at an apartment on Center Street in Atlanta in response to a 911 call from a woman who reported that someone had threatened her with a gun. The officers met with the victim and saw injuries to the victim’s left eye, mouth, and left jaw. The victim reported that Donald Johnson, 36, of Atlanta, Georgia, struck her in the left eye and mouth and later pointed a gun at her and threatened to kill her. The victim was subsequently hospitalized with a broken jaw. Johnson was eventually taken into local custody. APD officers recovered a loaded Smith and Wesson 38 Special revolver from a wooded area near the victim’s residence. The victim had reported to officers that they would find the gun in that area where Johnson attempted to hide it. At the time of his arrest, Johnson had been convicted of nine felony offenses and a misdemeanor offense of domestic violence. On August 24, 2021, a federal grand jury indicted Johnson for the offense of possessing a firearm after having been convicted of a felony offense.

• On May 12, 2021, APD officers, while on routine patrol in the New Town residential area in Atlanta, encountered Drashawn Mitchell, 26, of Atlanta, Georgia, who had an active warrant in Fulton County for committing a burglary while on probation. After initially resisting arrest, Mitchell was taken into custody. During a post-arrest search of Mitchell’s vehicle, the officers recovered a loaded Taurus G2C 9mm pistol, an extended 9MM magazine, a digital scale, and illegal drugs, including heroin and cocaine. On September 14, 2021, a federal grand jury indicted Mitchell for the offenses of drug trafficking and possessing a firearm in furtherance of that trafficking offense, and possessing a firearm after having been convicted of a felony offense.

• On November 28, 2020, an APD officer encountered Antonio Cooper, 35, of Atlanta, Georgia, at a supermarket in Atlanta. Cooper attempted to conceal a black Ruger 9mm pistol by tossing the firearm near an ATM machine in the store. Cooper’s prior criminal history includes 2020 convictions for aggravated assault and aggravated battery, and numerous drug trafficking offenses. On September 21, 2021, a federal grand jury indicted Cooper for the offense of possessing a firearm after having been convicted of a felony offense.

All of these defendants have been federally detained pending trial. 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 operation was part of the district’s PSN program and led by the U.S. Attorney’s Office and Fulton County District Attorney’s Office. PSN is an evidence-based program proven to be effective at reducing violent crime.

Through PSN, a broad spectrum of stakeholders work together to identify the most serious violent crime problems in the community and to develop comprehensive solutions to address them.  As a part of this strategy, PSN focuses enforcement efforts on the most violent offenders, and supports and fosters partnerships between law enforcement and schools, the faith community, local community leaders, and locally-based prevention and reentry programs – all to prevent and deter future criminal conduct and to achieve sustainable reductions in crime.

These cases are being investigated by the Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, Atlanta Police Department, and Georgia State Patrol.

Assistant U.S. Attorneys Natasha Cooper, Stephanie Gabay-Smith, Lauren Macon, Amy Palumbo, Erin Sanders, and Erin Spritzer are prosecuting these cases.

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

NEWNAN, Ga. - Jay Diamond, who has a criminal history with over 30 misdemeanor and traffic convictions, has been sentenced on two counts of false impersonation of a federal Air Marshal. 

“Flashing a badge and impersonating a federal officer to gain a benefit puts the public and law enforcement officers at risk,” said Acting U.S. Attorney Kurt R. Erskine.  “Instead of avoiding a speeding ticket, Diamond ended up with two federal felony convictions and time in prison.”

“Impersonating a law enforcement officer is a serious offense,” said Ronnie Tippett, Special Agent in Charge of DHS OIG’s Atlanta Field Office.  “Our office is committed to safeguarding the public from scam artists and individuals seeking to benefit themselves such as Mr. Diamond’s attempt to pose as a Federal Air Marshal.”

According to Acting U.S. Attorney Erskine, the charges and other information presented at trial:  On August 23, 2018, Jay Diamond was pulled over by a Troup County Deputy Sheriff for speeding on Interstate 185 in Troup County, Georgia.  He was travelling 90 miles per hour in a 70 miles per hour zone.  The entire traffic stop was captured on dash cam video. 

During the traffic stop, Diamond immediately identified himself as an Air Marshal and a Senior Air Marshal and showed the deputy a fraudulent badge that contained the words “Senior Federal Air Marshal.”  When asked for his actual law enforcement credentials, Defendant said he had left them at home.

The deputy believed that Diamond was pretending to be a law enforcement officer to avoid receiving a traffic citation.  Diamond also said he had received the fake badge from former President Jimmy Carter, and he tried to show them a photo of himself with President Carter.  Diamond’s story changed once he was arrested for falsely impersonating a law enforcement officer. 

Diamond admitted that he had been overzealous in calling himself an Air Marshal and “should have just taken the ticket.” 

On May 27, 2021, a federal jury returned guilty verdicts on both counts of the first superseding indictment after deliberating for approximately one hour and 30 minutes. 

Jay Diamond, a/k/a Larry Allen Dilleshaw, 49, of Phenix City, Alabama, was sentenced by U.S. District Judge Timothy C. Batten, Sr., to approximately one year and five months in prison to be followed by one year of supervised release, and 50 hours of community service.  Diamond was initially charged on two counts of false impersonation of a federal officer.

This case was investigated by the Department of Homeland Security - Office of the Inspector General.

Assistant U.S. Attorney Miguel R. Acosta 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 – In a series of pleas, six members of the Nine Trey Gangsters (NTG) national criminal organization pleaded guilty to Racketeer Influenced and Corruption Organization (RICO) conspiracy charges.

“Members of the Nine Trey Gangsters showed a shocking indifference to human life, both in carrying out planned acts of violence, and in distributing drugs, including methamphetamine, throughout Georgia,” said Acting U.S. Attorney Kurt Erskine.  “While the gang offered members a sense of belonging and the opportunity to make money through illicit drug sales, it was those same members who were most often the targets of violence from the gang based solely on the whims of the gang’s leaders.”

“The Department will continue to bring to justice the leaders and most violent members of dangerous criminal enterprises like the Nine Trey Gangsters,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Removing those most responsible for the violence and drug dealing perpetrated by members and associates of violent street gangs like the Nine Trey Gangsters makes our neighborhoods and communities safer.”

“Members of Nine Trey Gangsters have plagued our streets with violence and drug trafficking for far too long,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “These pleas are an example of our commitment to dismantle organized, violent criminal enterprises. The community can rest assured these defendants won’t be on our streets for a very long time, thanks to the efforts of the FBI led Safe Streets Gang Task Force and its state and local partners.”

“As part of our commitment of ridding our facilities of criminal activity, we maintain a robust plan for identifying and managing those participating in gang activity from behind prison walls,” said Georgia Department of Corrections Commissioner Timothy C. Ward.  “We appreciate the support and assistance of our law enforcement partners on every level, in our efforts to see that justice is being served on those who pose a threat to the safety of the public and the safe operations of our facilities.”

According to Acting U.S. Attorney Erskine, the charges and other information presented in court: The Nine Trey Gangsters 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 are a criminal organization whose 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, which took place in the Northern District of Georgia and elsewhere.

The Nine Trey Gangsters have a hierarchical structure their members throughout the country are subdivided into separate groups or “lines.”  Each NTG member has a specific rank within the gang or a specific line, and this rank comes with specific duties and responsibilities.  Each of the six defendants who pleaded guilty were part of the gang’s “Fire” line.

The following NTG gang members have pleaded guilty to count one of the second superseding indictment charging them and four others with RICO conspiracy:

Tyrone Clark, a/k/a “Tight Eye,” Joseph Riley, a/k/a “Joe Blow,” Gary Sartor a/k/a “G-Stacks,” and Patrick Caple a/k/a “Zoe,” all held the rank of “Fifth Floor” in the gang’s hierarchy, one of the highest ranks an individual can hold within a line of the gang.  In those roles they were responsible for overseeing all of the members below them and reporting up to the gang’s national leadership.

• Tyrone Clark, a/k/a “Tight Eye,” Joseph Riley, a/k/a “Joe Blow,” Gary Sartor a/k/a “G-Stacks,” and Patrick Caple a/k/a “Zoe,” all held the rank of “Fifth Floor” in the gang’s hierarchy, one of the highest ranks an individual can hold within a line of the gang.  In those roles they were responsible for overseeing all of the members below them and reporting up to the gang’s national leadership.
• Brandon Asberry a/k/a “B5,” held the rank of “Second Floor” in the gang’s hierarchy.  In the role of Second Floor, Asberry was responsible for collecting dues form the gang’s members and overseeing the gang’s meetings or “nines.”
• Michael Jackson a/k/a “MJ,” held the rank of “Third Floor” in the gang’s hierarchy, where he was responsible for planning “wars” or conflicts with rival gangs and providing weapons to other NTG members.

Gary Sartor, Patrick Caple, and Michael Jackson were in Georgia Department of Corrections custody when they participated in the conspiracy.

Tyrone Clark, 40, of Marietta, Georgia, Joseph Riley, 37, of Atlanta, Georgia, Gary Sartor, 37, of Atlanta, Georgia, Patrick Caple, 56, of Glennville, Georgia, Michael Jackson, 27, of Chester, Georgia, and Brandon Asberry, 32, of Atlanta, Georgia have pleaded guilty to Count 1 of the Second Superseding Indictment, charging them and four others with RICO Conspiracy, in violation of 18 U.S.C. § 1962(d) for their involvement in planning, facilitating, and executing multiple acts of violence and participation in the gang’s drug trafficking activities, including the distribution of methamphetamine, marijuana and Xanax.  Each defendant will be sentenced in the coming months by U.S. District Court Judge Amy Totenberg. 

This case is being investigated by the Federal Bureau of Investigation as part of their FBI Safe Streets Task Force with assistance from the Georgia Department of Corrections. 

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

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

Last week, six members of the Nine Trey Gangsters (NTG) national criminal organization pleaded guilty to Racketeer Influenced and Corruption Organization (RICO) conspiracy charges.

According to court documents, the NTG is 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 is a criminal organization whose members and associates engage in acts of crime and violence including murder, assault, robbery, firearms possession, witness tampering, obstruction of justice, drug trafficking and extortion among other criminal activity.

“The Department will continue to bring to justice the leaders and most violent members of dangerous criminal enterprises like the Nine Trey Gangsters,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Removing those most responsible for the violence and drug dealing perpetrated by members and associates of violent street gangs like the Nine Trey Gangsters makes our neighborhoods and communities safer.”

“Members of the Nine Trey Gangsters showed a shocking indifference to human life, both in carrying out planned acts of violence, and in distributing drugs, including methamphetamine, throughout Georgia,” said Acting U.S. Attorney Kurt Erskine for the Northern District of Georgia. “While the gang offered members a sense of belonging and the opportunity to make money through illicit drug sales, it was those same members who were most often the targets of violence from the gang based solely on the whims of the gang’s leaders.”

“Members of Nine Trey Gangsters have plagued our streets with violence and drug trafficking for far too long,” said Special Agent in Charge Chris Hacker of the FBI’s Atlanta Field Office. “These pleas are an example of our commitment to dismantle organized, violent criminal enterprises. The community can rest assured these six defendants won’t be on our streets for a very long time, thanks to the efforts of the FBI-led Safe Streets Gang Task Force and its state and local partners.”

“As part of our commitment of ridding our facilities of criminal activity, we maintain a robust plan for identifying and managing those participating in gang activity from behind prison walls,” said Commissioner Timothy C. Ward of the Georgia Department of Corrections. “We appreciate the support and assistance of our law enforcement partners on every level, in our efforts to see that justice is being served on those who pose a threat to the safety of the public and the safe operations of our facilities.”

“These Bloods members terrorized communities by committing murders and robberies with no regard for human life,” said Assistant Director Calvin Shivers of the FBI Criminal Investigative Division. “Today’s convictions provide a measure of justice, and the FBI will continue to dismantle these criminal enterprises and protect communities from gang violence.”

The NTG have a hierarchical structure in which members throughout the country are subdivided into separate groups or “lines.” Each NTG member has a specific rank within the gang or a specific line, and this rank comes with specific duties and responsibilities. Each of the six defendants who pleaded guilty were part of the gang’s “fire” line.

The following NTG gang members, all of Georgia, pleaded guilty to count 1 of the second superseding indictment charging them and four others with RICO conspiracy:

• Tyrone Clark, aka “Tight Eye”; Joseph Riley, III, aka “Joe Blow”; Gary Sartor aka “G-Stacks”; and Patrick Caple, aka “Zoe,” all held the rank of “Fifth Floor” in the gang’s hierarchy, one of the highest ranks an individual can hold within a line of the gang. In those roles they were responsible for overseeing all the members below them and reporting up to the gang’s national leadership.
• Brandon Asberry, aka “B5,” held the rank of “Second Floor” in the gang’s hierarchy. In this role, Asberry was responsible for collecting dues form the gang’s members and overseeing the gang’s meetings or “nines.”
• Michael Jackson, aka “MJ,” held the rank of “Third Floor” in the gang’s hierarchy. He was responsible for planning “wars” or conflicts with rival gangs and providing weapons to other NTG members.

Clark, 40, of Marietta; Jackson, 27, of Chester; Caple, 56, of Glennville; and Riley, 37, Sartor, 37, and Asberry, 32, all of Atlanta, pleaded guilty to the RICO conspiracy charge for their involvement in planning, facilitating and executing multiple acts of violence and participating in the gang’s drug trafficking activities, including the distribution of methamphetamine, marijuana, and Xanax. Sartor, Caple and Jackson were in Georgia Department of Corrections custody when they participated in the conspiracy.

The defendants face a statutory maximum penalty of life in prison. Jackson, Riley and Clark are scheduled to be sentenced on Feb. 1, 2022. The others will be sentenced in the coming months by U.S. District Court Judge Amy Totenberg in the Northern District of Georgia. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

This case is being investigated by the FBI as part of the Safe Streets Task Force, with valuable assistance provided by the Georgia Department of Corrections. 

Trial Attorney Kristen Taylor of the Criminal Division’s Organized Crime and Gangs Section and Assistant U.S. Attorneys in the Northern District of Georgia are prosecuting the case.

ATLANTA – Jahziah Roy Lewis has been sentenced for conspiring to straw purchase firearms, possession of a firearm with an obliterated serial number, exporting firearms outside the United States, and possession with intent to distribute marijuana.

“Lewis directed the straw purchase of the guns, had their serial numbers obliterated, and then smuggled them in household items with the intent of selling them abroad,” said Acting U.S. Attorney Kurt R. Erskine.  “Our federal and international law enforcement partners were able to intercept some of the shipments before they were used in a crime.  We will continue to aggressively prosecute those who buy firearms for others and unlawfully export them for illicit purposes.”

“The unlawful acquisition and trafficking of firearms is a serious crime that threatens our communities here and abroad," said Special Agent in Charge, Atlanta Field Division Ben Gibbons. “Obliterated firearms are hard to trace and that is what prohibited individuals are interested in.  This investigation illustrates the dedication of ATF and its’ law enforcement partners to disrupt illegal firearm straw purchase schemes within the U.S. or anywhere firearm traffickers, like Lewis, choose to operate.”

“Firearms illegally exported from the United States to the Caribbean fuels violent crime, which directly impacts regional stability and U.S. national security interests,” said Ariel Joshua Leinwand, Special Agent in Charge of the Bureau of Industry and Security’s (BIS), Office of Export Enforcement, who oversees BIS investigations in the Southeast. “This significant sentence should act a deterrent to those seeking to violate U.S. export and firearms laws. BIS and our law enforcement partners will continue to aggressively enforce export violations to combat illegal firearm exports.”

“Stopping the flow of illegal weapons prevents the spread of violence and crime in communities abroad,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI is committed to preventing the spread of illegal goods and works with its law enforcement partners to bring to justice those violators.”

“The diversion of firearms to individuals who cannot legally possess them contributes to the cycle of gun violence that pose a direct threat to the safety and stability of various communities,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division. “Postal Inspectors will continue to aggressively investigate and hold those accountable who maliciously utilize the U.S. mail system.”

According to Acting U.S. Attorney Erskine, the charges and other information presented in court: Between February 18, 2017, and May 14, 2020, Jahziah Roy Lewis, a citizen of the United Kingdom, and two accomplices, were involved in an international weapons trafficking conspiracy to purchase and illegally export approximately thirty-six firearms and drugs from the United States to the United Kingdom and the Caribbean via the U.S. Postal Service. Multiple firearms purchased in Georgia have been recovered in United Kingdom and St. Kitts are tied to various criminal networks abroad.

At the time of each purchase, Lewis’s co-conspirators completed paperwork in which they falsely claimed to be the actual buyers of the firearms when they knew that they were buying the guns for someone else (Lewis). Lewis then directed his accomplice to obliterate the serial numbers on the firearms.  After the firearms were purchased, Lewis would sell the firearms abroad by directing his accomplices to conceal the firearms in everyday household items and export them abroad using false names on shipping labels.

On October 1, 2020, the same day the Indictment against Lewis’ co-defendants was unsealed, Lewis obtained an outbound ticket for a flight from the United States to the United Kingdom. Local law enforcement, however, intercepted Lewis at the Miami International Airport and arrested him on a criminal complaint before he was able to board his flight.

Jahziah Roy Lewis, 30, of Saint Kitts and Nevis, was sentenced by U.S. District Court Judge Thomas W. Thrash to four years, nine months, to be followed by three years of supervised release. 

The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Bureau of Industry and Security, the Department of Homeland Security, the U.S. Postal Inspection Service, and the United Kingdom National Crime Agency led the investigation in this case.

Assistant U.S. Attorney Dash A. Cooper is prosecuting the case.

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

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

ATLANTA - Alejandro Salazar-Gama, Miguel Salazar-Gama, and Arturo Acevedo have been sentenced for their roles in a drug trafficking conspiracy that involved nearly 40 kilograms of 100 percent pure methamphetamine.

“Methamphetamine trafficking breeds violent crime and threatens our community,” said Acting U.S. Attorney Kurt R. Erskine. “We and our law enforcement partners are working hard to combat the trafficking of methamphetamine into and through the Northern District of Georgia, and we will use every tool available stop it.”

“Methamphetamine poses a clear and present danger to our communities,” said the Special Agent in Charge of the DEA Atlanta Field Division Robert J. Murphy. “Because of the collaborative effort between DEA and its law enforcement partners, citizens of the Smyrna, Georgia community can sleep better at night knowing that these defendants will spend well-deserved time in federal prison.”

“This should be a shot across the bow to criminal elements intent on distributing their poison in our communities.  Law enforcement agencies in North Georgia are united and determined in keeping our communities safe,” said Dan Salter, Director of the Atlanta-Carolinas High Intensity Drug Trafficking Area (HIDTA).

According to Acting U.S. Attorney Erskine, the charges and other information presented in court: On April 10, 2019, an undercover agent with the Drug Enforcement Administration’s Atlanta-Carolinas High-Intensity Drug Trafficking Area program arranged via telephone to purchase 40 kilograms of methamphetamine at a business in Smyrna, Georgia.

At the time and place of the arranged meeting, defendant Alejandro Salazar-Gama met the undercover agent and agreed to bring the drugs to the parking lot to show the undercover agent before selling the drugs to the agent. Alejandro Salazar-Gama left the parking lot and returned about 40 minutes later. Shortly afterwards, a van arrived driven by defendant Arturo Acevedo with defendant Miguel Salazar-Gama as a passenger.

When the undercover agent went inside the van, he/she opened one of the boxes located inside the van and saw that the box contained methamphetamine.  At that time, the City of Smyrna Police Department SWAT team surrounded the three defendants and arrested them. In total, the drugs weighed more than 39 kilograms and subsequently tested positive for methamphetamine at 100 percent purity. Law enforcement officers believe that this is the largest quantity of methamphetamine ever seized in the City of Smyrna.

The three defendants were sentenced by U.S. District Court Judge Thomas W. Thrash Jr., to the following:

• Alejandro Salazar-Gama, 31, of Sandy Springs, Georgia, has been sentenced to 11 years, seven months in prison to be followed by five years of supervised release.  Salazar-Gama was sentenced on June 17, 2020, after he pleaded guilty.

• Arturo Acevedo, 22, of Sandy Springs, Georgia, has been sentenced to 14 years in prison to be followed by five years of supervised release. Acevedo was sentenced on September 15, 2021, after he pleaded guilty.

• Miguel Salazar-Gama, 29, of Sandy Springs, Georgia, has been sentenced to three years in prison. Salazar-Gama was sentenced on September 15, 2021, after he pleaded guilty.

This case was investigated by the Drug Enforcement Administration, the Atlanta-Carolinas High Intensity Drug Trafficking Area program, and the City of Smyrna Police Department.

Assistant U.S. Attorney Nicholas N. Joy prosecuted the case.

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

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 - Maurice Fayne, who starred in Love & Hip Hop: Atlanta, has been sentenced to more than 17 years in federal prison for conspiracy and wire fraud related to a Ponzi scheme, and for bank fraud, and making false statements to a financial institution related a fraudulent Paycheck Protection Program (PPP) loan application.

“Fayne planned to use the PPP program as a cover for his long-running Ponzi scheme,” said Acting U.S. Attorney Kurt R. Erskine.  “The funds the program supplies serve as a lifeline to many businesses desperately trying to stay afloat during the pandemic, and unfortunately his fraud helped deplete those precious dollars.” 

“This sentence should serve notice that the FBI and our federal partners will investigate anyone who misdirects federal emergency assistance earmarked for businesses who need it to stay afloat,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “We won’t tolerate anyone driven by personal greed to pocket American taxpayer money that should be going to those who need it.”

“Lying to gain access to SBA’s pandemic response programs is not without consequence,” said SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite. “OIG will relentlessly pursue evidence of fraud against SBA’s programs aimed at assisting the nation’s small businesses struggling with the pandemic challenges. I want to thank the U.S. Attorney’s Office for its leadership and dedication to pursuing justice.”

According to Acting U.S. Attorney Erskine, the charges, and other information presented in court: From March 2013 through May 2020, Fayne ran a multistate Ponzi scheme that defrauded more than 20 people who invested in his trucking business. Fayne promised that he would use the investors’ money to operate the business. Instead, he used the money to pay his personal debts and expenses and to fund an extravagant lifestyle for himself. During the scheme, Fayne spent more than $5 million at a casino in Oklahoma.

In April 2020, Fayne submitted a $3.7 million PPP loan application to United Community Bank, falsely claiming that his trucking business had 107 employees and an average monthly payroll of $1,490,200. Fayne promised to use the PPP loan proceeds to retain workers and maintain payroll or make mortgage interest payments, lease payments, and utility payments related to his trucking business. Instead, Fayne used the PPP loan proceeds for improper purposes, including the following:

•         $40,000 for past-due child support; •         $50,000 for restitution owed in a previous fraud case; •         $65,000 in cash withdrawals; •         $85,000 for custom-made jewelry; •         $136,000 to lease a Rolls-Royce; •         $230,000 to associates who helped him run a Ponzi scheme; •         $907,000 to start a new business in Arkansas.

Maurice Fayne, a/k/a Arkansas Mo, 38, of Dacula, Georgia, was sentenced by U.S. District Judge Mark H. Cohen to 17 years, six months in prison to be followed by five years of supervised release and ordered to pay restitution in the amount of $4,465,865.55 to the victims.  Fayne was convicted on these charges on May 11, 2021, after he pleaded guilty.

This case was investigated by the Federal Bureau of Investigation and the Small Business Administration-Office of Inspector General.

Assistant U.S. Attorneys Russell Phillips and Bernita Malloy prosecuted the case.

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

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

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

ATLANTA – The Justice Department announced today that it has opened a statewide civil investigation into conditions of confinement of prisoners held in Georgia’s prisons.

“Individuals sentenced to prison in Georgia Department of Corrections facilities deserve to be treated humanely,” said Acting U.S. Attorney Kurt R. Erskine.  “Our office is committed to ensuring state prisoners are safe while serving their sentences.  We look forward to working cooperatively with the Georgia Department of Corrections to ensure the safety of all individuals in its prisons.”

“Ensuring the inherent human dignity and worth of everyone, including people who are incarcerated inside our nation’s jails and prisons, is a top priority,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department’s investigations into prison conditions have been successful at identifying systemic constitutional violations and their causes, fixing those causes, and stopping the violations. We are investigating prison violence and abuse in Georgia’s prisons to determine whether Constitutional violations exist, and if so, how to stop them.”

“Prison conditions that enable inmates to engage in dangerous and even deadly activity are an injustice, jeopardizing the lives of detainees, staff members and other corrections personnel,” said Acting U.S. Attorney Peter D. Leary for the Middle District of Georgia. “Our local law enforcement and corrections partners, with whom we work with closely each and every day, are indispensable to our united goal of achieving a safer Georgia for all. Under the leadership of the department’s Civil Rights Division, we look forward to collaborating with our state partners to address our mutual concern for safety in the corrections system.”

“This investigation is an example of our office’s commitment to stamping out violence in our district, no matter where it is found, no matter who the victim is,” said Acting U.S. Attorney David H. Estes for the Southern District of Georgia. “We look forward to working with the State of Georgia, the Georgia Department of Corrections, the Civil Rights Division of the Department of Justice, and our counterparts in the U.S. Attorney’s Offices for the Northern and Middle Districts of Georgia to further our shared mission to keep correctional facilities safe for the sake of our community, the prisoners housed there and the dedicated staff who work there.”

The investigation will examine whether Georgia provides prisoners reasonable protection from physical harm at the hands of other prisoners. The department also will continue its existing investigation into whether Georgia provides lesbian, gay, bisexual, transgender, and intersex prisoners reasonable protection from sexual abuse by other prisoners and by staff.

The department has not reached any conclusions regarding the allegations in this matter. The investigation will be conducted under the Civil Rights of Institutionalized Persons Act (CRIPA). Under CRIPA, the department has the authority to investigate whether any violations of prisoners’ constitutional rights result from a “pattern or practice of resistance to the full enjoyment of such rights.” The department has conducted CRIPA investigations of many correctional systems, and where violations have been found, the resulting settlement agreements have led to important reforms.

The Special Litigation Section of the Department of Justice Civil Rights Division is conducting this investigation jointly with the U.S. Attorney’s Offices for the Northern, Middle and Southern Districts of Georgia. Individuals with relevant information are encouraged to contact the department via phone at (844) 401-3736 or by email at Community.GeorgiaDOC@usdoj.gov.

Additional information about the Civil Rights Division’s CRIPA investigations related to prisons and jails can be found here:  https://www.justice.gov/crt/rights-persons-confined-jails-and-prisons.

Assistant U.S. Attorney Aileen Bell Hughes, Civil Rights Enforcement Coordinator, is handling this matter for the Northern District of Georgia.

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

ATLANTA – Bamidele Muraina, a Nigerian national who hacked into tax preparation firms and filed fraudulent unemployment benefit claims and tax returns using stolen personally identifiable information, and Gabriel Kalembo, a previously convicted fraudster who laundered the fraudulent assets, have been sentenced to federal prison.

“These defendants stole funds from programs meant to assist American workers and families seeking to make ends meet during the COVID-19 pandemic,” said Acting U.S. Attorney Kurt R. Erskine. “The collaborative efforts of our law enforcement partners were essential to disrupting a sophisticated network of criminals and bringing their leaders to justice.”

“The COVID-19 pandemic has had a devastating effect on us all. The enterprise created by these serial criminals further victimized our citizenry by robbing them of financial resources that were intended to help them,” said Special Agent in Charge Steven Baisel, U.S. Secret Service Atlanta Field Office. “Thanks to our judicial system, justice has been served.”

“Bamidele Muraina engaged in a conspiracy to defraud the Employment Security Department of Washington State (“ESD-WA”) by filing dozens of fraudulent unemployment insurance (UI) claims in the names of identity theft victims who were not entitled to such benefits. As part of the same conspiracy, Gabriel Kalembo and his conspirators laundered the unlawfully obtained UI benefits from ESD-WA by purchasing and then later negotiating hundreds of money orders. We will continue to work with our law enforcement partners and state workforce agencies to protect the integrity of unemployment insurance benefit programs,” said Rafiq Ahmad, Special Agent in Charge, Atlanta Region, U.S. Department of Labor Office of Inspector General.

“The sentencing of the defendants should serve as a deterrent to all who intend to exploit the COVID-relief programs that were designated to assist those in need during the pandemic,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division of the United States Postal Inspection Service. “Postal Inspectors will continue to work with our law enforcement partners to investigate anyone that steals federal funds to enrich themselves and have them held accountable under the law.”

“The conspirators not only stole from the government but also victimized individuals and private businesses in this case,” said IRS Criminal Investigation Special Agent in Charge James E. Dorsey.  “Recovering from ID theft often costs time, money, and stress for all parties involved.  Thanks to successful partnerships with our agency counterparts and leveraging our financial expertise to serve and protect our communities from further harm.”

“These criminals shamelessly stole people’s hard-earned tax returns and money meant to help families during the pandemic, but thankfully they were exposed and are now facing justice,” 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 will continue to aggressively pursue those that seek to profit from these activities.”

According to Acting U.S. Attorney Erskine, the charges and other information presented in court: Bamidele Muraina was a Nigerian national residing in the metro Atlanta area at the time of his offenses. Between at least January 29, 2018 and continuing through approximately April 2020, Muraina hacked into multiple tax preparation and accounting firms located in several states, including a Brunswick, Georgia-based accounting firm.  Muraina obtained access to the firms’ accounts with a national tax preparation program, stole personally identifiable information from their clients, and filed more than 275 fraudulent individual income tax returns in their names via the Internet. In total, Muraina’s fraudulent tax returns using stolen identities sought refunds from the IRS exceeding $2.6 million from 2018 through 2020.

Between May 9, 2020 and May 16, 2020, Muraina used stolen personally identifiable information from Washington residents to submit false claims for unemployment insurance benefits in Washington. Muraina’s false claims exploited a federal COVID-19 pandemic relief program created by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which expanded eligibility for unemployment benefits and provided an additional unemployment benefit of $600 per week. Based on Muraina’s fraudulent claims submitted in the names of approximately fifty Washington residents over a one-week span, the State of Washington issued more than $280,000 in unemployment benefits.

Muraina directed fraudulent funds from his unemployment benefits scheme and tax fraud scheme to be deposited into bank accounts set up by co-conspirators, including Gabriel Kalembo, who was convicted in 2017 of conspiracy to commit wire and bank fraud in the Northern District of Georgia. Kalembo recruited Zambian nationals to travel to the United States on tourist visas to incorporate sham corporations in Georgia and open business bank accounts in the names of those corporations. After the fraudulent funds were deposited into those accounts, Kalembo laundered the funds by cashing money orders purchased with debit cards linked to the accounts.

Bamidele Muraina, 35, of Oyo, Nigeria was sentenced by U.S. District Judge William M. Ray II to five years and ten months in prison to be followed by three years of supervised release, and he ordered Muraina to pay $561,125.62 in restitution. 

Gabriel Kalembo, 33, of Atlanta, Georgia was sentenced by Judge Ray to four years and two months in prison to be followed by two years of supervised release, and he ordered Kalembo to pay $298,008.71 in restitution.

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

Assistant U.S. Attorneys Nathan P. Kitchens, Chief of the Public Integrity and Special Matters Section, Sarah E. Klapman, and Lauren T. Macon are prosecuting the case.

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 - Rashad Sargeant has pleaded guilty to unlawfully exporting firearms to Barbados. Together with co-defendant David Johnson, Sargeant shipped at least 30 guns to Barbados after obliterating the serial numbers of the firearms and packing them inside false compartments in boxes.

“Greed fuels the illicit firearms market with traffickers ignoring the violent consequences of helping to equip criminals with guns,” said Acting U.S. Attorney Kurt R. Erskine.  “We remain steadfast in our efforts to curb gun-related violence in our communities and to prosecute firearms traffickers.”

“The unlawful acquisition and trafficking of firearms is a serious crime that threatens our communities here and abroad,” said Special Agent in Charge, Atlanta Field Division Ben Gibbons. “Obliterated firearms are hard to trace and that is what prohibited individuals are interested in.  This investigation illustrates the dedication of ATF and its’ law enforcement partners to disrupt illegal firearm straw purchase schemes within the U.S. or anywhere firearm traffickers, like Sargeant, choose to operate.”

“Firearms illegally exported from the United States often end up in the wrong hands and are used to commit further criminal acts,” said Ariel Joshua Leinwand, Special Agent in Charge of the Bureau of Industry and Security’s (BIS), Office of Export Enforcement, Atlanta Office. “BIS will continue to work with our law enforcement partners to aggressively enforce export violations and combat illegal firearm exports in the interest of public safety in the U.S. and overseas.”

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

According to Acting U.S. Attorney Erskine, the charges and other information presented in court: Johnson recruited Shunquez Stephens and others, to unlawfully purchase guns from federally licensed firearms dealers. Stephens, and the other “straw purchasers,” made false statements to the licensed dealers by swearing that that they were purchasing the guns for themselves. Sargeant and Johnson would then take possession of the guns and use false identifications to mail the guns to Barbados through common carriers like UPS, FedEx, and DHL.

Rashad Sargeant, 27, of College Park, Georgia, pleaded guilty on September 2, 2021.  Sentencing for Sargeant is scheduled for December 16, 2021, at 1:30 p.m., before U.S. District Judge William M. Ray II.

David Johnson, 31, of Belleville, Illinois, pleaded guilty on July 22, 2021. Sentencing is scheduled for November 4, 2021, at 1:30 p.m., before U.S. District Judge William M. Ray II.

Shunquez Stephens, 28, of Flowery Branch, Georgia, pleaded guilty for his role in this scheme on June 21, 2021. Sentencing is scheduled for September 22, 2021, at 11:00 a.m., before U.S. District Judge William M. Ray II.

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

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

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

GAINESVILLE, Ga. - Giovanni Annucci-Romero has been sentenced for a string of armed robberies in the cities of Gainesville and Cleveland, Georgia.

“The excellent coordination of federal and local law enforcement officers achieved the arrest and successful prosecution of this serial robber,” said Acting U.S. Attorney Kurt R. Erskine. “These partnerships are helping to ensure the safety of the citizens of our district at a time when violent crime is spiking.”

“Giovanni Annucci-Romero terrorized several communities,” said ATF Special Agent in Charge, Atlanta Field Division Ben Gibbons. “This sentence represents the seriousness of his crime.  ATF and our law enforcement partners will continue to reduce violent crime by arresting criminals, such as Annucci-Romero, who terrorizes the communities in which law-abiding citizens live.” 

“We are pleased with the convictions and knowing that these violent criminals have been removed from our communities,” said Chief Jeff Shoemaker, Cleveland Police Department.

“Partnerships in policing, the community and a comprehensive investigation played a key role in serving justice in this case. We are fortunate and thankful that no one was injured during this dangerous crime spree,” said Chief Jay Parrish, Gainesville Police Department.

“This outcome is a direct reflection of what good multi-jurisdictional teamwork and communication can accomplish. As a law enforcement leader, I continually strive to impress upon my employees the need to be proactive in everything we do and to remain alert at all times. The fact that our deputy was able to locate and stop Mr. Annucci-Romero within moments of his last criminal act serves as a testament to the fact that our deputies embrace their obligation to protect the citizens they serve,” said Habersham County Sheriff Joey Terrell.

According to Acting U.S. Attorney Erskine, the charges and other information presented in court: Annucci-Romero wielded two firearms, one in each hand, during robberies of a grocery store in Gainesville, and two gas stations, one in Gainesville, and one in Cleveland, Georgia. Annucci-Romero was arrested on May 23, 2020, shortly after he robbed the gas station in Cleveland.

Following the robbery, Cleveland police officers released a description of the robbery suspect’s vehicle. Moments later, a deputy with the Habersham County Sheriff’s Office stopped a vehicle that matched the description. Annucci-Romero was arrested in the vehicle after the deputy saw him sitting on the cash he had just stolen from the Cleveland gas station.

Giovanni Annucci-Romero, 24, of Gainesville, Georgia, was sentenced to ten years in prison to be followed by four years of supervised release and ordered to pay restitution in the amount of $31,943.  Annucci-Romero was convicted on these charges on May 19, 2021, after he pleaded guilty.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Cleveland Police Department, the Gainesville Police Department, and the Habersham County Sheriff’s Office.

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

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

ATLANTA - Elijah Isaiah Boykin, an active-duty U.S. Navy Sailor, and Elijah Keashon Barnes have been indicted for unlawfully obtaining and transporting dozens of firearms that were later used in New Jersey-area crimes.  Boykin and Barnes served together in the U.S. Navy until June 2020, when Barnes was discharged following his confinement for repeated violations of military law.

“Federal law prohibits the making of false statements and misrepresentations to licensed firearms dealers,” said Acting U.S. Attorney Kurt R. Erskine. “Individuals who use deception to buy guns intended for other people will face severe consequences, including imprisonment and the loss of valuable civil rights.”

“The unlawful acquisition and trafficking of firearms is a serious crime that threatens our communities here and abroad,” said ATF Special Agent in Charge, Atlanta Field Division Ben Gibbons. “This investigation illustrates the dedication of ATF and its law enforcement partners to disrupt illegal firearm straw purchase schemes within the U.S. or anywhere criminals choose to operate.”

According to Acting U.S. Attorney Erskine, the charges, and other information presented in court: Between April 2020 and August 2020, Elijah Isaiah Boykin purchased more than two dozen firearms from federally licensed firearms dealers in Georgia and Virginia.  The total purchase price exceeded $17,000 and was spread over eight transactions.  On each occasion, Boykin signed paperwork stating that he was the actual purchaser of the guns but paid using a credit card belonging to co-defendant Elijah Keashon Barnes.

Local law enforcement in and around Newark, New Jersey began to recover Boykin’s firearms shortly after they were purchased.  One pistol was recovered in October 2020, when police officers in Newark conducted a traffic stop and arrested Barnes, who was wanted on a Virginia warrant for domestic assault and battery.  The pistol was found in Barnes’s car.  A few months later, Newark police officers recovered another gun that Boykin purchased.  Forensic testing linked that second firearm to three separate shootings in Newark, including a violent mugging during which a victim was shot multiple times in the right leg.

To date, at least six firearms purchased by Boykin have been recovered in the city of Newark or a nearby township.

Elijah Isaiah Boykin, 25, of Palmetto, Georgia, and Elijah Keashon Barnes, 21, of Newark, New Jersey, were indicted by a federal grand jury on June 15, 2021 for conspiracy to make false statements, three counts of making false statements to federally licensed firearms dealers, and one count of unlawful transfer of firearm. On August 25, 2021, Boykin was arrested by Naval Criminal Investigative Service (NCIS) Agents at Naval Air Station Key West.  Barnes was arrested the same day in Newark.  The defendants will be arraigned at a later date in the Northern District of Georgia.

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 Bureau of Alcohol, Tobacco, Firearms and Explosives.

Assistant U.S. Attorney Theodore S. Hertzberg, Firearms Trafficking Coordinator for the Northern District of Georgia, is prosecuting the case.

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

ATLANTA - Dawuan Na’jee Williams has been indicted on federal charges of making false statements to federally licensed firearms dealers, aggravated identity theft, and possession of firearms by a convicted felon.

“Convicted felons are prohibited from legally possessing and purchasing firearms under any circumstance,” said Acting U.S. Attorney Kurt R. Erskine. “Criminals who try to circumvent these restrictions by stealing and using the identities of law-abiding citizens will be prosecuted.”

“It is illegal for any convicted felon to possess a firearm,” said L. C. Cheeks Jr, Acting ATF Atlanta Special Agent in Charge.  “These illegally purchased firearms will more than often be used in violent crimes and it is these types of guns that we need to get off our streets.  ATF will continue to work with our Federal and State partners to improve safety in each and every community we serve.”

According to Acting U.S. Attorney Erskine, the charges, and other information presented in court: Dawuan Williams allegedly used a fraudulently obtained identification card bearing his photograph, but the name and date of birth of another person, to purchase dozens of firearms and large-capacity ammunition magazines in the metro Atlanta and North Georgia areas. Williams could not lawfully purchase the guns because he had been convicted previously of numerous felonies, including burglary, robbery, terroristic threats, kidnapping, aggravated battery, and criminal use of personal identification information.

Federal agents began investigating Williams’s purchases in May 2021, when police officers recovered from a Newark, New Jersey, crime scene a semiautomatic pistol that Williams allegedly purchased in Georgia just eight days earlier. 

In July 2021, police officers recovered a second semiautomatic pistol from the scene of a shooting in Tallahassee, Florida. Federal agents traced this firearm to a Georgia purchase made with Williams’s identification card.  A cellular telephone video taken around the time of the Florida shooting depicted the alleged shooter as a man of Williams’s race and complexion wearing a distinctive red baseball cap and red Gucci belt.

On July 20, 2021, federal agents searched a Jonesboro, Georgia, residence where Williams rented a room.  In one of the bedrooms, agents recovered four firearms that had been purchased with Williams’s fake ID, empty firearm boxes for other firearms purchased with that ID, a red baseball cap, and a red Gucci belt.  Williams was arrested that same day.

Dawuan Na’jee Williams, 39, of Jonesboro, Georgia. and Tallahassee, Florida, was arraigned before U.S. Magistrate Judge John K. Larkins III.  He was indicted by a federal grand jury on August 17, 2021.  He was arraigned August 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 Atlanta, Georgia, and Newark, New Jersey, Field Divisions of the Bureau of Alcohol, Tobacco, Firearms and Explosives.

Assistant U.S. Attorney Theodore S. Hertzberg, Firearms Trafficking Coordinator for the Northern District of Georgia, 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 - Franck Davidoff and Dwight Pearson have been sentenced after pleading guilty to a multi-million-dollar fraud scheme that resulted in a loss of over $2,000,000 to Synchrony Bank.

“These two defendants not only harmed the bank, but the pair also victimized countless businesses and individuals by stealing their information and posing as them to perpetrate a massive bank fraud scheme,” said Acting U.S. Attorney Kurt R. Erskine.“We warn others who might follow their example that this conduct will be prosecuted.”

“The defendants in this case deliberately defrauded scores of innocent citizens out of millions of dollars for their own personal gain,” said U.S. Secret Service Special Agent in Charge Steven Baisel. “With the help of our local law enforcement partners at the Duluth PD, we were able to successfully end their criminal enterprise.”

According to Acting U.S. Attorney Erskine, the charges and other information presented in court: From January 2017 until they were arrested in October 2018, Franck Davidoff and Dwight Pearson conspired to defraud Synchrony Bank in a complicated fraud scheme that netted them over $2 million.  The scheme involved using stolen corporate information to open merchant bank accounts at Synchrony Bank. 

Specifically, in June 2018, Davidoff and Pearson opened a merchant account with Synchrony Bank in the name “S&G Carpet Stores,” a real business that operates in the state of Florida and used S&G Carpet’s CEO’s information to open the account.  At the time the account was created, the pair directed the bank to transfer any funds deposited into the S&G Carpet account into a separate merchant account opened in their own names. 

The pair then established $600,000 worth of lines of credit for 57 individuals whose information they stole. The lines of credit appeared to be advance financing for large purchases from S&G Carpet.  Once the money was deposited into the S&G Carpet account, it was immediately transferred to the secondary account.  Davidoff and Pearson conducted this scheme multiple times using multiple businesses.  They targeted businesses in Florida for the merchant accounts. They also targeted residents in a wealthy neighborhood in Florida to use for the fake lines of credit.

For this conduct, they were charged with a wire fraud conspiracy to defraud Synchrony Bank, 13 counts of wire fraud, and seven counts of aggravated identity theft.  Each pled guilty to the wire fraud conspiracy and aggravated identity theft.

Franck Davidoff, 34, of Milton, Georgia, has been sentenced to six years, six months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $2,379,178.19.  Davidoff was convicted of these charges on March 22, 2021, after he pleaded guilty.

Dwight Pearson, 49, of Johns Creek, 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 $2,379,178.19.  Pearson was convicted of these charges on May 17, 2019, after he pleaded guilty.

This case was investigated by the U.S. Secret Service and the Duluth Police Department.

Special Assistant U.S. Attorney Diane C. Schulman and former Assistant U.S. Attorney Cassandra Schansman 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 Justice Department and the Office of the Comptroller of the Currency (OCC) announced coordinated actions to address allegations of lending discrimination by Cadence Bank, N.A. The Department’s Civil Rights Division and the U.S. Attorney’s Office for the Northern District of Georgia announced an agreement to resolve allegations that Cadence Bank, which is headquartered in Atlanta, Georgia, engaged in lending discrimination by “redlining” predominantly Black and Hispanic neighborhoods in the Houston, Texas, metro area.  Under the department’s settlement, Cadence will invest over $5.5 million to increase credit opportunities for residents of those neighborhoods. “Redlining” is an illegal practice in which lenders avoid providing services to individuals living in communities of color because of the race, color, or national origin of the people who live in those communities.

“The Fair Housing Act and Equal Credit Opportunity Act are intended to provide equal treatment for all people in their pursuit of home ownership and financing.  This case highlights the need for vigilance in addressing practices which treat certain communities unfairly, and has led to an agreement with Cadence Bank intended to improve the fairness of its business practices and to make remedial financial investments in the negatively impacted communities,” said Acting U.S. Attorney Kurt R. Erskine.  “This office will continue in its efforts to eliminate housing and credit discrimination.”

“When banks fail to provide equal access to credit in communities of color, they violate our civil rights laws and they deprive people in those communities of the opportunity to build wealth,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Redlining is an illegal practice that has far-reaching consequences for people of color, their families and for the neighborhoods where they live. The Civil Rights Division will continue to enforce our nation’s fair lending laws to ensure that qualified applicants and borrowers can access credit and invest in their financial futures without facing unlawful barriers.”  

“There is no place for discrimination in the federal banking system,” said Acting Comptroller of the Currency Michael J. Hsu. “The OCC will use the full force of our authority to correct fair lending violations with our supervisory and enforcement tools, including civil money penalties, cease and desist orders, and requiring restitution for customers harmed as a result of any discriminatory practices.”

Additionally, Cadence’s prudential regulator, the OCC, announced today that it has assessed penalties against the bank in the amount of $3 million related to the violations alleged in the department’s complaint. The department opened its investigation after the OCC referred the matter.

The Justice Department’s settlement will resolve a lawsuit filed today in the U.S. District Court for the Northern District of Georgia. In its complaint, the department alleges that Cadence Bank violated the Fair Housing Act and the Equal Credit Opportunity Act, which prohibit financial institutions from discriminating on the basis of race, color, or national origin in their mortgage lending services. Specifically, the complaint alleges that, from 2013 to 2017, Cadence engaged in unlawful redlining in the Houston area by avoiding predominantly Black and Hispanic neighborhoods because of the race, color, and national origin of the people living in those neighborhoods. The department also alleges that Cadence’s branches were concentrated in majority-white neighborhoods, that the bank’s loan officers did not serve the credit needs of majority-Black and Hispanic neighborhoods, and that the bank’s outreach and marketing avoided those neighborhoods.

Under the department’s settlement, which is subject to approval by the District Court, Cadence will invest $4.17 million in a loan subsidy fund for residents of predominantly Black and Hispanic neighborhoods in the Houston area, $750,000 for development of community partnerships to provide services that increase access to residential mortgage credit in those neighborhoods, and at least $625,000 for advertising, outreach, consumer financial education, and credit repair initiatives. The bank will dedicate at least four mortgage loan officers to majority-Black and Hispanic neighborhoods in Houston and open a new branch in one of those neighborhoods. Cadence will employ a director of community lending and development who will oversee these efforts and work in close consultation with the bank’s leadership. The bank will take these steps in addition to other fair lending measures it has already put in place.  

Cadence Bank’s assets total over $18 billion. In addition to Texas, the bank has branches in Georgia, Alabama, Florida, Mississippi, and Tennessee. Its mortgage lending in the Houston area accounts for approximately 40 percent of its total home mortgage business.

The department’s Civil Rights Division and the OCC have long been engaged in work that seeks to make mortgage credit and homeownership accessible to all Americans on the same terms, regardless of race or national origin, and regardless of the neighborhood where they live. In January 2021, President Biden reaffirmed the critical role of the federal government in addressing legacies of housing segregation and discrimination, declaring that it is the policy of this Administration to eliminate “racial bias and other forms of discrimination in all stages of home-buying and renting.” See Memorandum on Redressing Our Nation’s and the Federal Government’s History of Discriminatory Housing Practices and Policies, The White House (Jan. 26, 2021).

The Justice Department’s enforcement of fair lending laws is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section. Additional information about the Section’s fair lending enforcement can be found at www.justice.gov/fairhousing. Individuals may report lending discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-833-591-0291, or submitting a report online.

Assistant U.S. Attorney Y. Soo Jo is handling this matter for the Northern District of Georgia.

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

ATLANTA – Brian Sperber has been indicted for defrauding personal protective equipment (“PPE”) purchasers out of more than $12 million during the COVID-19 pandemic, money which Sperber then allegedly used to fund his own lifestyle, including by purchasing a multi-million-dollar waterfront mansion.   

“While others were marshalling limited medical resources to confront the COVID-19 pandemic, Sperber allegedly lined his pockets with stolen money that was intended to purchase lifesaving PPE for hospitals and medical institutions,” said Acting U.S. Attorney Kurt R. Erskine. “As the effects of the COVID-19 pandemic continue, this office will aggressively pursue those individuals who steal funds intended to be used to purchase critical medical equipment.”

“Sperber allegedly took advantage of companies trying to direct personal protective equipment to those protecting themselves against a deadly virus,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Profiting from others’ hardships is something the FBI is determined to stop and will be a priority for our investigators during this pandemic.”

According to Acting U.S. Attorney Erskine, the charges, and other information presented in court: Brian Sperber, who was a distributor of PPE, allegedly embezzled over $12 million from customers seeking to purchase PPE during the COVID-19 pandemic. Sperber and a co-conspirator are alleged to have repeatedly sent customers falsified invoices, emails, and other documents to make them believe that their orders were on the way when in fact Sperber and his co-conspirator had misappropriated the funds.

Even though he was aware hospital and medical institutions needed this PPE as the pandemic worsened in early 2020, Sperber allegedly used millions of dollars’ of his victims’ funds for his own personal use, which included purchasing a multi-million dollar waterfront mansion in Boca Raton, Florida.

Brian Sperber, 44, of Boca Raton, Florida was charged with one count of conspiracy to commit wire fraud, four counts of wire fraud, one count of conspiracy to commit money laundering, and four counts of money laundering.  Sperber will be arraigned at a later date in the Northern District of Georgia.

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. 

Assistant U.S. Attorney Thomas J. Krepp is prosecuting the case, and Assistant U.S. Attorney Sekret T. Sneed, Chief of the Asset Forfeiture and Money Laundering Section, is handling the forfeiture associated with 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.

ATLANTA - Jamal Harrison has been charged with wire fraud in a six-count federal indictment for extorting a criminal defendant who had been charged in a federal case in Atlanta.  During the scheme, Harrison falsely claimed that the federal prosecutor would dismiss the charges in the defendant's case for $15,000.

“Harrison allegedly promised a favorable outcome in the victim’s federal case when instead it was just a scam,” said Acting U.S. Attorney Kurt R. Erskine.  “If a member of the public is asked to pay a bribe, don’t pay it and call the FBI immediately.”    

“Every American citizen has rights under our Constitution and should report anyone who attempts to bribe them,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “No matter who the victim is, the FBI will fully investigate any allegations of a crime.”

According to Acting U.S. Attorney Erskine, the indictment, and other information presented in court: In July 2020, “Person 1,” an Atlanta resident, was arrested on a criminal indictment filed in the U.S. District Court for the Northern District of Georgia.  Upon conviction for one or more of the crimes charged in the federal case, Person 1 was subject to a term of imprisonment, a term of supervised release, and other penalties and fines. 

In August 2020, Harrison learned about the arrest and met with Person 1.  During this meeting, Harrison saw a copy of the criminal indictment in Person 1’s case.  Harrison then allegedly claimed that he was a part-time employee of the Georgia Bureau of Investigation and knew the federal prosecutor in Person 1’s case.  Harrison allegedly asserted that he could get the charges against Person 1 dismissed for $15,000, which he would give to the federal prosecutor.  Person 1 refused.

Days later, Harrison met with Person 1 again.  This time, Harrison threatened that if Person 1 still refused to pay the $15,000, the federal prosecutor would file additional charges against Person 1 and seek a longer term of imprisonment upon conviction.  Person 1, fearing Harrison’s threat, agreed to pay and did pay Harrison $12,000 in cash.  After making the payment, Harrison falsely claimed that he gave the money to the federal prosecutor, who would dismiss the charges against Person 1.  In truth, however, Harrison allegedly kept the payment for himself.  Harrison also stated that the federal case might be dismissed faster if Person 1 could provide more money.

By January 2021, the federal case against Person 1 remained active.  Around this time, Person 1 and their attorney met with the prosecutor and agents in the federal case, and Person 1 realized that Harrison had deceived and extorted them.  In early February 2021, Person 1 entered a guilty plea in the federal case.  Later that month, however, Harrison continued to claim that he could get the charges dismissed if he received more money from Person 1.  In March 2021, Person 1 recorded a meeting at which Person 1 gave Harrison $3,000 in cash, at which time Harrison allegedly guaranteed a speedy dismissal of the federal case. 

On August 24, 2021, a grand jury returned an indictment against Jamal Harrison, 33, of Brookhaven, Georgia, on six counts of wire fraud.  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.

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 - Randolph Anthony Scott, Jr., a prolific gun dealer, has pleaded guilty to charges of unlawfully dealing firearms, making a false statement to a federally licensed firearms dealer, and interstate travel and purchase of firearms with intent to deal without a license.

“Unlicensed firearm dealers put the public at risk each time they sell a firearm to a potential criminal,” said Acting U.S. Attorney Kurt R. Erskine. “Removing guns from the hands of criminals remains a top priority as we continue to focus on identifying, investigating, and prosecuting the most significant drivers of gun violence and other violent crime.”

“Mr. Scott’s criminal actions are one of the main avenues used by prohibited individuals to acquire firearms.  By Mr. Scott not being a licensed firearms dealer and using proper background checking procedures, he could have put guns in the hands of potential criminals,” said L.C. Cheeks Jr., ATF Atlanta Acting Special Agent in Charge.  “ATF will continue to focus its attention on individuals that will unlawfully acquire and sell firearms.”

According to Acting U.S. Attorney Erskine, the charges and other information presented in court: From May 2019 until March 2020, Scott purchased over 100 firearms from federally licensed firearms dealers in Georgia. Scott traveled from New York to Georgia multiple times to purchase large quantities of firearms that he would then unlawfully sell to others. Each time he purchased a firearm, he filled out an Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Form 4473 and falsely indicated that he was the actual buyer of the firearm. Scott then sold the firearms on the streets of New York, where he was able to sell the guns for double what he had paid.

Sentencing for Randolph Anthony Scott, Jr., 36, of Bronx, New York, is scheduled for December 17, 2021, at 10:00 a.m. before U.S. District Judge Steven D. Grimberg.

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

Assistant U.S. Attorney Erin N. Spritzer 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 – Carenow Services, LLC, a Roswell-based psychotherapy services provider, as well as its CEO Leena Karun (collectively “Carenow”), have agreed to pay $2 million to settle allegations that they violated the False Claims Act by billing Medicare and Medicaid for psychotherapy sessions at nursing homes and skilled nursing facilities that were medically unnecessary, improperly documented, or billed at higher intensity levels than justified (a practice known as upcoding).

“Indiscriminately billing the government for psychotherapy services without regard to medical need or intensity of treatment deprives taxpayers of precious federal healthcare resources,” said Acting U.S. Attorney Kurt R. Erskine. “We remain committed to investigating healthcare fraud, particularly those schemes that target the most vulnerable in our communities.  Those who commit healthcare fraud should know that they risk significant fines, penalties and even federal prison time.”

“Hopefully, the False Claims Act settlement in this case will be a deterrent to anyone thinking about abusing federal healthcare programs for their own benefit,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI is determined to protect taxpaying citizens and those who need federal help for their healthcare needs.”

“Carenow Services allegedly exploited not only its access to Federal health care dollars, but also its relationship with nursing facility residents in need of psychological services,” said Derrick L. Jackson, Special Agent in Charge with the Department of Health and Human Services Office of Inspector General. “Fraudulently billing Medicare and Medicaid for personal gain cheats millions of people who fund the programs or depend on their services. With our law enforcement partners, HHS-OIG unceasingly carries out our mission to protect these programs, in part, by bringing to justice those who bilk them.”

“Our Medicaid Fraud Division, in cooperation with our state and federal enforcement agencies, will remain vigilant in maintaining the integrity of public programs and prosecuting those who steal from taxpayers,” said Georgia Attorney General Chris Carr.

The settlement resolves False Claims Act allegations that between 2012 and 2018, Carenow billed Medicare and Medicaid for psychotherapy sessions at nursing homes and skilled nursing facilities that did not have any documented medical necessity. Additionally, in those situations where the psychotherapy sessions were medically necessary, Carenow allegedly upcoded its services and billed Medicare and Medicaid at higher reimbursing procedural codes. Consistent with the Justice Manual, the settlement includes credit to Carenow for immediately cooperating with the government in this investigation and for promptly taking steps to remediate the conduct described above.

This settlement resolves a lawsuit filed in the U.S. District Court for the Northern District of Georgia styled United States and Georgia ex rel. Whitaker v. Carenow Services, LLC, No. 1:17-CV-1314-ELR (N.D. Ga.) by a former Carenow employee under the qui tam or whistleblower provisions of the False Claims Act, which permit private citizens to bring lawsuits on behalf the United States and obtain a portion of the government’s recovery. The whistleblower in this case will receive a share of the government’s recovery.

This case was investigated by the U.S. Attorney’s Office for the Northern District of Georgia, the Georgia Medicaid Fraud Control Unit, and Health and Human Services—Office of the Inspector General, and the Federal Bureau of Investigations.

The civil settlement was reached by Assistant U.S. Attorney Armen Adzhemyan, who is the civil Elder Justice Coordinator, and Georgia Assistant Attorney General Sara Vann. The claims resolved by this settlement are allegations only and there has been no determination of liability.

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

ATLANTA – Alice Sue Smith has been sentenced for stealing from her employer while working as the bookkeeper and for filing false tax returns.

“When employees take advantage of their positions of trust to steal from small, family-owned businesses, real victims suffer serious financial harm,” said Acting U.S. Attorney Kurt R. Erskine.  “As in this case, there are real and significant consequences for employees who are caught stealing from their employers.”

“Smith let her greed blind her to responsibilities her company entrusted her with,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “For that she will be held accountable.”

“This sentencing sends a clear message that stealing from your employer is not okay,” said Demetrius Hardeman, Assistant Special Agent in Charge, IRS CI Atlanta Field Office. “No one should ever feel they have the right to take what is not theirs.  IRS-CI will continue to work diligently, in concert with the FBI and US Attorney’s Office, to ensure everyone pays their fair share.”

According to Acting U.S. Attorney Erskine, the criminal information, and other information presented in court: Alice Sue Smith was the bookkeeper and office manager at Chattanooga Coin, Inc. (“CCI”) from 2004 to 2018. From 2009 to 2018, Smith forged the signatures of CCI’s owners on approximately 1,400 checks that she then cashed. Smith also created fictitious check stubs in CCI’s financial records to cover up her fraud. In total, she stole approximately $1.24 million from CCI over nearly a decade. Smith also failed to report the embezzled funds and other legitimate income on her income tax returns.

Alice Sue Smith, 63, of Fort Oglethorpe, Georgia, has been sentenced to three years, seven months in prison to be followed by three years of supervised release. The Court also ordered her to pay restitution to CCI and the United States of approximately $1.48 million. She was convicted of wire fraud and filing a false tax return on February 11, 2021, after pleading guilty.

This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation, with assistance from the Rossville, Georgia Police Department.

Assistant U.S. Attorneys Michael Qin and Russell Phillips prosecuted 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.

ATLANTA - Myles Frazier has been sentenced to 24 years in prison for the offenses of cyberstalking, enticement of a minor to engage in prostitution, and child pornography production.

“Frazier coerced numerous teenage boys online to engage in sex acts and send him photos and videos of that activity,” said Acting United States Attorney Kurt R. Erskine.  “He then threatened to expose the boys to their families and classmates when they refused to comply with his demands.  This defendant is the online sexual predator that so many parents fear. His 24-year sentence is a critical step in achieving a measure of justice for the victims and their families.”

“Frazier will spend the next 24-years of his life in prison, which should send a strong message to anyone who even contemplates harming and extorting a vulnerable youth,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI takes sextortion very seriously. We would like to remind the community to be aware that people can pretend to be anyone online and to be extremely selective on what you share on the internet.”

According to Acting U.S. Attorney Erskine, the charges and other information presented in court: Between December 2017 and July 2019, Myles Frazier targeted nine high school boys on social media using fraud and deceit to coerce the teens to meet him for sex and to create and send him sexually explicit images and videos.  Frazier met most of the teens using an Instagram account where he was posing as an older attractive woman. 

Three of the boys he targeted (Victim 1, Victim 2, and Victim 3) attended the same high school. Frazier, posing as a woman named “Liv,” pressured and paid Victim 1 to let a man (who was Frazier) come to Victim 1’s house and engage in sex acts with Victim 1 on two occasions.  Both times, Victim 1 asked Frazier to stop mid-sex act, and on the second occasion, Victim 1 had to use physical force to stop Frazier.  Frazier attempted to arrange similar in-person meetings for paid sex with Victim 2 and Victim 3.

Frazier also threatened to expose Victim 1 to Victim 1’s family and school, to sue Victim 1, and to come to Victim 1’s home.  Over the course of a week, Frazier sent Victim 1 more than 100 threatening messages. Frazier made similar threats to Victim 2 Frazier even threatened to expose Victim 2 to cause Victim 2 to lose a college athletic scholarship.

The other six teens Frazier targeted lived outside the State of Georgia.  Frazier coerced these boys to create and send him sexually explicit images and videos by paying them and sending them pornographic videos of a woman who Frazier claimed to be.  When the minors stopped complying with his demands for sexual content, Frazier tried to extort several of them, threatening to publicly post their sexual content and expose them to their school principal, superintendent, and parents.   

Myles Frazier, 29, of Atlanta, Georgia, was sentenced by U.S. District Judge Steve C. Jones to 24 years in federal prison, to be followed by 20 years of supervised release.  He must also register as a sex offender as a condition of his supervised release.  Frazier was sentenced on August 11, 2021 and pleaded guilty on February 12, 2021.

This case was investigated by the Federal Bureau of Investigation.

Assistant U.S. Attorneys Annalise K. Peters and Laurel Boatright Milam prosecuted the case.

This case is 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 U.S. 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 - Hunter VanPelt, a/k/a Hunter Lauren VanPelt, a/k/a Ellen Corkrum, a/k/a Ellen Yabba Kwame Corkrum, who defrauded the Paycheck Protection Program (PPP) of more than $6 million, has pleaded guilty to a charge of bank fraud.

“The Paycheck Protection Program helps businesses keep their workforces employed during the COVID-19 crisis,” said Acting U.S. Attorney Kurt Erskine.  “When these funds are diverted by fraud, such as in this case, workers and the businesses that employ them unfortunately suffer.”

“VanPelt brazenly exploited this devastating national emergency for personal gain, and she is now being held accountable for her fraudulent conduct,” said Assistant Attorney General Kenneth A. Polite Jr., of the Justice Department’s Criminal Division. “PPP funds should be reserved for legitimate businesses and their hard-working employees who have suffered economically as a result of the pandemic. The Department of Justice is committed to ensuring that anyone who takes advantage of COVID-19 relief programs will be brought to justice.”

“The Paycheck Protection Program is key to survival for many small businesses during the COVID-19 crisis,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “It is particularly disturbing that anyone would try to capitalize off a federal program at those businesses’ expense. The FBI will persist in its efforts to stop such fraud.”                      

“To support small and community banks, the Federal Home Loan banks can accept Paycheck Protection Program (PPP) loans as collateral when making loans to their members,” said Special Agent in Charge Edwin S. Bonano of the Federal Housing Finance Agency, Office of Inspector General. “The 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 Federal Home Loan Bank System and steal the assistance intended for small business owners and employees under this important part of the CARES Act.” 

According to Acting U.S. Attorney Erskine, the charge and other information presented in court: VanPelt submitted six false and fraudulent PPP loans between April 27, 2020 and June 17, 2020. The amounts requested in the six 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.,         
• 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.

Sentencing for Hunter VanPelt, 49, of Roswell, Georgia, is scheduled for January 4, 2022, at 10:00 a.m., before U.S. District Judge Mark H. Cohen.

This case is being 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 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 - Kevin Rumph, Jr., has pleaded guilty to a charge of theft of medical products.  Rumph used his U.S. Department of Veteran Affairs (VA) issued credit card to buy over $1.9 million worth of Continuous Positive Airway Pressure (CPAP) equipment, which he stole and then sold.

“As a VA employee, Rumph’s job was to serve those who served and protected our nation,” said Acting U.S. Attorney Kurt R. Erskine.  “His greed was a betrayal of trust that deprived veterans of the scarce resources needed by them to live productive lives.”

“The defendant’s deceitful actions breached the public trust, undermined the integrity of VA’s healthcare operations, and tarnished the important work that honest VA employees do every day in support of our nation’s veterans,” said David Spilker, Special Agent in Charge at the VA OIG.  “The VA OIG thanks the VA medical center for referring this matter and the U.S. Attorney’s Office for its partnership in holding the defendant accountable for his unlawful conduct.”

According to Acting U.S. Attorney Erskine, the charges and other information presented in court: Kevin Rumph, Jr., was a purchasing agent employed by the VA.  He had been employed 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 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.

Kevin Rumph, Jr., 41, of Fairburn, Georgia, pleaded guilty to theft of medical products.  Sentencing is scheduled for November 17, 2021, at 10:00 a.m., before U.S. District Judge Michael L. Brown.

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

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 - Richard J. Randolph, III has been sentenced for securities fraud he committed while CEO of Randolph Acquisitions, Inc.

“Corporate executives, like Randolph, are expected to defend investors’ money, not take advantage of their position in a company to defraud them,” said Acting U.S. Attorney Kurt R. Erskine.  “Instead, this defendant let his greed get the better of him and now he faces significant federal prison time.” 

“Fraud is fraud, no matter how complicated,” said Special Agent in Charge Steven R. Baisel, U.S. Secret Service - Atlanta Field Office. “The defendant in this case employed multiple machinations in an effort to hide his criminal acts. Ultimately, his efforts failed under the scrutiny of the law enforcement professionals tasked with unraveling his schemes.”

According to Acting U.S. Attorney Erskine, the charges and other information presented in court: Richard Randolph was the CEO, Chairman of the Board of Directors, and majority shareholder of Randolph Acquisitions, Inc., a company headquartered in Atlanta, Georgia, that publicly filed its financials with the Securities and Exchange Commission.  He also controlled Gallagher Management Group and other related entities.  In 2017 and 2018, Randolph sold over $1 million in Randolph Acquisition stock to various investors.

In 2017, Randolph began preparing to merge Gallagher Management Group into Randolph Acquisitions and sold Randolph Acquisitions shares to multiple investors.  Gallagher Management also engaged an accounting firm to audit its 2016 financial statements.  In connection with this audit, Randolph provided false and fraudulent information regarding Gallagher Management Group’s assets which were then reflected on the balance sheet of the 2016 financial statements:

• Randolph falsely valued property at $10.5 million with no associated liability.  In reality, Gallagher Management Group purchased the property in September 2016 for $1.1 million with a $1.1 million mortgage loan secured by the property.  It was sold in August 2017 for $1.2 million.

• Randolph falsely claimed that Gallagher Management Group owned two buildings valued at a claimed $10 million combined.  In reality, neither Gallagher Management Group nor Randolph ever owned these properties.

• Randolph falsely valued yet another property at $4.5 million that was acquired in January 2016 for $425,000 by an entity controlled by Randolph and was transferred to Gallagher Management Group in March 2017.  In April 2018, the property was sold at auction for $687,500 after Gallagher Management Group defaulted on a $500,000 loan.

• Randolph provided a false bank statement showing a balance of over $2.5 million.  The actual balance in this account was $58,198.78.

The audited financials included other misrepresentations:

• They falsely stated that Gallagher Management Group “has consistently maintained over $50 million dollars in assets, under management, annually.”

• They falsely stated that Gallagher Management Group “provides a broad range of investment banking services to a diverse group of corporations, financial institutions, investment funds, and governments.”

• They falsely stated that Gallagher Management Group “provides investment management services and offer[s] investment products (primarily through separately managed accounts, such as mutual funds and private investment funds) across all major asset classes to a diverse set of institutional and individual clients.”

Gallagher Management Group engaged a consultant to prepare a business valuation for the merger which relied upon Gallagher Management Group’s 2016 audited financial statements, additional false property valuation information provided by Randolph, and false projections provided by Randolph.  The report valued Gallagher Management Group at $31.3 million on an enterprise value basis and $33.8 million on an equity value basis.

In connection with the proposed merger between Randolph Acquisitions and Gallagher Management Group, Randolph Acquisitions made multiple filings with the Securities and Exchange Commission that attached the false and fraudulent 2016 audited financial statements of Gallagher Management Group.  Randolph directed investors to these filings. 

In addition to these documents, Randolph made other false and fraudulent misrepresentations to prospective investors:

• Randolph falsely claimed that Randolph Acquisitions was close to securing a variety of large public and private contracts in the U.S. Virgin Islands, including hurricane remediation contracts and an agreement to manage the U.S. Virgin Islands public retirement fund.  Randolph Acquisitions never obtained any of these contracts.

• Randolph falsely claimed that Randolph Acquisitions owned EF Block.  To the contrary, Randolph Acquisitions did not own EF Block.

• Randolph falsely claimed that Randolph Acquisitions was publicly traded on the pink sheets.  Randolph Acquisitions was never listed on any exchange.

Using these misrepresentations, Randolph induced 14 victims to invest over $1.6 million in Randolph Acquisitions.

Richard J. Randolph, III, 40, of Atlanta, Georgia, was sentenced to six years, six months in prison to be followed by three years of supervised release and ordered to pay restitution in the amount of $1,602,200 to his victims.  Randolph was convicted on these charges on April 9, 2021, after he pleaded guilty.

This case was investigated by the U.S. Secret Service, with assistance from the U.S. Securities and Exchange Commission.  In a related civil matter, the U.S. Securities and Exchange Commission filed a complaint charging Randolph and he consented to entry of a judgment against him.

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.

ATLANTA - Christopher Hayes has been sentenced for defrauding the USDA’s Coronavirus Food Relief Program and attempting to defraud the IRS's COVID-19 relief program.

“The government has provided significant relief for Americans as a result of the COVID-19 pandemic,” said Acting U.S. Attorney Kurt R. Erskine.  “Unfortunately, there are those who take advantage of this to defraud these programs.  Our office has placed the highest priority on prosecuting those that do so.”

“IRS-Criminal Investigation is committed to investigating fraud against COVID-19 relief programs,” said IRS-Criminal Investigation Special Agent in Charge James E. Dorsey.  “Our financial expertise is a key asset to the COVID-19 Fraud Enforcement Task Force.  We will continue to use our financial expertise to identify fraud, trace the funds, and bring the criminals to justice.”

“The USDA COVID-19 food assistance programs were meant to keep food on American family’s tables during this unprecedented time,” said Jason Williams, Special Agent in Charge, U.S. Department of Agriculture-Office of Inspector General.  “This prosecution should send a strong zero-tolerance message to those opportunistic fraudsters who would take advantage of a national emergency to enrich themselves.”

According to Acting U.S. Attorney Erskine, the charges and other information presented in court: Hayes submitted a false claim to the USDA's Coronavirus Food Assistance Program (CFAP) for the claimed loss of livestock at his commercial farming operation.  CFAP provided direct relief to producers who faced price declines and additional marketing costs due to COVID-19.  Hayes did not own or operate a commercial farming operation and did not have losses associated with any livestock when he made a claim under CFAP. 

In addition, Hayes submitted a fraudulent IRS Form 7200, which, when used legitimately, 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.  In total, Hayes attempted to obtain over $1.5 million in COVID-19 relief funding.  

This is the first completed prosecution for fraud on these two COVID-19 relief programs in the country.

Christopher Hayes, 35, of Stonecrest, Georgia, has been sentenced to two years, six months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $248,739.  Hayes was convicted on these charges on May 3, 2021, after he pleaded guilty.

This case is being investigated by the Internal Revenue Service Criminal Investigation and U.S. Department of Agriculture, Office of Inspector General.

Assistant U.S. Attorneys Sarah Klapman and Christopher J. Huber, Deputy Chief of the Complex Frauds Section, are prosecuting the case.

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

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

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

ATLANTA – North Georgia Healthcare Center, Inc. (“NGHC”), a Ringgold, Georgia, based nonprofit corporation and healthcare provider, as well as its CEO, Delaine Hunter, have agreed to pay $130,000.00 dollars to settle allegations that they violated the False Claims Act by causing the submission – between January 1, 2012 and September 10, 2018 – of medically unnecessary claims for Schedule II controlled substances to the United States and State of Georgia.  Specifically, the Complaint alleges that Dr. Gary Smith, a former NGHC physician, improperly prescribed opioids without appropriate medical review and judgment of medical necessity. 

“Medical professionals are trusted to prescribe controlled substances in compliance with the law and in a manner that protects the health and safety of their patients,” said Acting U.S. Attorney Kurt R. Erskine.  “We will continue to vigorously pursue those who breach that trust using every tool at our disposal.”

“Healthcare fraud is not a victimless crime, with fraudsters often preying on beneficiaries across the country. Especially insidious is the fraud committed by heath care practitioners who are trusted to prescribe only medically necessary, quality services to patients,” said Special Agent in Charge Derrick L. Jackson of the Department of Health and Human Services Office of Inspector General. “Working closely with our law enforcement partners, our agency will continue to protect the public by holding those responsible for such schemes responsible for their actions.”

“We are fighting the opioid epidemic on many fronts, including holding those accountable who improperly prescribe without appropriate medical review and judgment,” said Georgia Attorney General Chris Carr. “These types of allegations will receive our full attention because of the potential harm to Georgians and the improper use of taxpayer dollars.”

“The opioid addiction crisis in this country affects everyone to include the military and their families,” stated Special Agent in Charge Cynthia A. Bruce, Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office.  “This settlement is another step forward in striking at the heart of physician assisted addiction and holding those medical professionals accountable for unethical service.”

To be reimbursable under Government insurance programs such as Medicare, Medicaid and Tricare, drugs prescribed by a physician must be (1) rendered pursuant to the prescriber’s medical judgment, and (2) reasonable and medically necessary.  Additionally, under Georgia law, only physicians – and not mid-level practitioners such as physician assistants – can write prescriptions for Schedule II drugs, which includes, but is not limited to, opioids such as oxycodone and hydrocodone.  Where a physician assistant interacts with a patient and concludes that the patient requires a Schedule II drug, the doctor that supervises the physician assistant must concur that the pertinent Schedule II drug is medically necessity and must sign the associated prescription. 

The Government alleges that physician assistants – and not Dr. Smith –saw most of the patients at NGHC.  Dr. Smith only visited NGHC one afternoon per week, and rarely saw patients or reviewed their charts.  The Government further alleges that Dr. Smith routinely signed stacks of prescriptions (which included, but were not limited to, prescriptions for Schedule II drugs) for patients that he had neither seen nor otherwise evaluated.  Finally, the Government alleges that NGHC’s CEO failed to promptly address this behavior once alerted to it by several NGHC employees.

Dr. Smith, in a separate settlement agreement with the United States Department of Health and Human Services – Office of Inspector General, has agreed to a voluntary 10 year exclusion from participation in all federal healthcare programs.  As result, both Dr. Smith and any provider using Dr. Smith’s services will be unable to obtain reimbursement for care provided to any patients insured under a government healthcare program, such as Medicare, Medicaid and Tricare.

The settlement resolves a lawsuit filed in the U.S. District Court for the Northern District of Georgia by a former NGHC employee under the qui tam or whistleblower provisions of the False Claims Act, which permit private citizens to bring lawsuits on behalf of the United States and obtain a portion of the government’s recovery.  The case is captioned United States and Georgia ex rel. Krysta Mangrum v. LabCorp, et al. (Civil Action No. 1-18-cv-312).  The claims resolved by this settlement are allegations only and there has been no determination of liability.

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 and the Defense Criminal Investigative Service of the U.S. Department of Defense – Office of Inspector General.

Assistant U.S. Attorney Paris A. Wynn and Assistant Attorney General Sara Vann handled this matter. 

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 https://www.justice.gov/usao-ndga/.

ATLANTA – Rico Laprince Southall has been charged with possession of a firearm by a convicted felon.  Southall fired shots at the victim, who happened also to be a family member.

“A key factor in reducing gun violence is to remove firearms from the hands of individuals prohibited from possessing them,” said Acting U.S. Attorney Kurt R. Erskine. “We will pursue those who illegally possess firearms and undermine the safety of our community through continued collaboration with our federal, state, and local law enforcement partners.”

“There is no question about the level of violence displayed by Southall,” said ATF Special Agent in Charge Arthur Peralta.  “He indiscriminately fired the gun he illegally possessed without any concern about who might be hurt.  The arrest and indictment of Southall is part of our commitment to make our communities safer each and every day.”

“The Cobb County Police Department continues to proudly coordinate investigations across jurisdictional boundaries in order to ensure justice is served for all victims. Law enforcement agencies must continue to share information in cases like this in order to maintain the safety of all those living and working within our communities,” said Cobb County Police Chief Tim Cox.

According to Acting U.S. Attorney Erskine, the charges, and other information presented in court:  On April 1, 2021, Rico Laprince Southall targeted a victim, a member of his family, as the victim drove in the area of Powder Springs, Georgia.  Southall pursued the victim’s vehicle through the residential area and fired multiple rounds at her vehicle from a semi-automatic pistol equipped with a high-capacity magazine.  Several rounds entered the passenger compartment of the victim’s vehicle, with at least one round striking an unoccupied infant safety seat.  One of the rounds also struck another car in the vicinity. 

The Cobb County Police Department responded to the scene and saw Southall leaving the area in his vehicle in which his girlfriend and minor child were passengers.  The responding officers arrested Southall and recovered the semi-automatic pistol he had fired, as well as a second gun, a revolver. The officers noted that Southall had reloaded the semi-automatic weapon during the shooting. Both firearms had been reported stolen.  

Southall was arraigned before U.S. Magistrate Judge Christopher C. Bly on July 30, 2021, and 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 Bureau of Alcohol, Tobacco, Firearms and Explosives, and Cobb County Police Department.

Assistant U.S. Attorney D’Juan B. Jones is prosecuting the case.

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

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

ATLANTA – Acting U.S. Attorney Kurt Erskine issued an update on his office’s efforts to combat fraud related to schemes targeting the Paycheck Protection Program (PPP), a loan program created by Congress to help small businesses pay payroll, interest on mortgages, rent, and utilities during the COVID-19 pandemic.

“Along with our federal, state and local law enforcement partners, we continue to remain focused on investigating and prosecuting crimes involving PPP fraud,” said Acting U.S. Attorney Kurt R. Erskine.  “Unfortunately, when criminals steal these funds, they take them out of the hands of those suffering financial hardship.  Criminals should understand that the diversion of taxpayer money meant to help small businesses survive this crisis will be fully investigated and prosecuted.”

The U.S. Attorney’s Office for the Northern District of Georgia has charged dozens of people with federal crimes related to PPP fraud, including bank fraud, conspiracy, and money laundering. The cases involve a variety of criminal conduct, including business owners who inflated their payroll expenses to obtain larger loans than they otherwise would have qualified for, serial fraudsters who used shell companies to apply for loans, and organized criminal networks that submitted identical loan applications and supporting documents on behalf of more than one company. Most charged defendants not only obtained the loan proceeds under false pretenses, but they also used the loan proceeds for prohibited purposes, such as the purchase of houses, cars, jewelry, and other luxury items.

The PPP fraud cases prosecuted by The U.S. Attorney’s Office for the Northern District of Georgia include the following:

• United States v. Darrell Thomas, et al.: Twenty-two defendants were charged in an $11.1 million PPP loan fraud scheme orchestrated by Duluth, Georgia resident Darrell Thomas. Thomas and his team applied for fraudulent PPP loans on behalf of 14 businesses located in seven different states. Each loan application claimed that the businesses had between 59 and 69 employees and attached forged IRS tax forms and either a fake bank statement or payroll expense spreadsheet, many of which were substantively identical in multiple fraudulent applications. In reality, none of the businesses had employees or payroll expenses. After the PPP loan proceeds were deposited into the businesses’ accounts, the business owners transferred more than $5.5 million to accounts controlled by Thomas, and the funds were used to purchase luxury vehicles, jewelry, and to pay for other personal expenses. As a result of the investigation, the United States seized nearly $4 million in PPP funds, and six participants in the scheme, including Thomas, have pleaded guilty.
• U.S. v. Rodericque Jarmaine Thompson, et al.: Nine individuals, including the ringleader, Rodericque Jarmaine Thompson, have pleaded guilty to various federal charges arising from multiple bank-fraud conspiracies designed to obtain PPP loans under false pretenses. Each of the loan applications contained identical false information. For example, each loan application falsely claimed that the business had 16 employees and a monthly payroll of $120,000. Each application was supported by fraudulent quarterly tax returns that claimed the business owner had paid $358,819 in wages per quarter. In the application, the business owner swore that the loan proceeds would be used for payroll, utilities, lease payments, consistent with the PPP rules. The business owners agreed to kickback up to 50 percent of the loan amount to Thompson, as a fee for helping them obtain the loans. After receiving the loans, the business owners wrote multiple checks for $8,333.33 to individuals selected by Thompson, or to their friends and family members. All of the checks claimed to be for “payroll,” even though the individuals who received the checks were not employed by the businesses.
• U.S. v. Alicia Quarterman, et al.: The U.S. Postal Inspection Service and the Drug Enforcement Administration executed a search warrant at the home of Alicia Quarterman in Fayetteville, Georgia in connection with an ongoing narcotics trafficking investigation. A package containing methamphetamine hidden in dog food containers had been mailed to Quarterman’s home. As part of the search, law enforcement seized Quarterman’s cell phones and discovered a handwritten ledger with the personal and banking information of several individuals. That ledger and a subsequent search of Quarterman’s cell phone revealed an alleged Economic Injury Disaster Loans (EIDL) and PPP loan fraud scheme devised by Quarterman and Katrina Lawson of Houston, Texas, a former deputy sheriff for Fulton County. The scheme involved the submission of fraudulent business loan applications on behalf of their friends and family who did not actually own businesses. In total, the scheme involved 50 different individuals, including India Middleton of Accokeek, Maryland (a deputy sheriff in Arlington County, Virginia); James McFarland, Tranesha Quarterman (a former Army military policeman), Darryl Washington, Adarin Jones, and Katie Quarterman of Atlanta, Georgia; Nikia Wakefield of Rockville, Maryland; and Victor Montgomery of Washington, D.C. The ten defendants were indicted on March 16, 2021 on charges of wire fraud, bank fraud, mail fraud, money laundering, and conspiracy to commit wire fraud for attempting to steal over $774,000. The defendants used the loan proceeds to purchase luxury vehicles, a motorcycle, and an all-terrain four-wheeler.
• U.S. v. Maurice Fayne: Maurice Fayne, who starred in the reality TV show Love & Hip Hop: Atlanta, pleaded guilty to bank fraud and making false statements to a financial institution in connection with a fraudulent $3.7 million PPP loan application. Fayne falsely claimed that his trucking business had 107 employees and an average monthly payroll of $1,490,200. Fayne certified that the PPP loan proceeds would be used to “retain workers and maintain payroll or make mortgage interest payments, lease payments, and utility payments, as specified under the Paycheck Protection Program Rule.” Instead, Fayne used the PPP loan proceeds to pay his past-due child support, pay restitution owed in a previous fraud case, make payments to associates who helped him run a Ponzi scheme, start a new business, purchase jewelry, and lease a Rolls-Royce. In addition, Fayne pleaded guilty to wire fraud and conspiracy in connection with a Ponzi scheme that caused approximately 20 people to invest over $5 million in Fayne’s fictitious trucking business. Fayne promised that he would use the investors’ money to operate the business. Instead, Fayne used the investors’ money to pay his personal debts and expenses, and to fund his extravagant lifestyle.

Indictments and other criminal charges referenced above are merely allegations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

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 – Seventeen more individuals have been charged in connection with a fraudulent scheme to obtain approximately $11.1 million in Paycheck Protection Program (PPP) loans and to use those funds to purchase luxury vehicles, jewelry, and other personal items.  To date, a total of 22 individuals have been charged in connection with the fraudulent scheme.  Six individuals, including the scheme’s mastermind, Darrell Thomas, have pleaded guilty.    

“The defendants allegedly took advantage of emergency financial assistance intended for business owners suffering the economic effects caused by the COVID-19 pandemic,” said Acting U.S. Attorney Kurt R. Erskine.  “The charges reinforce our resolve to prosecute anyone who used pandemic relief funds for personal gain.”

“So many businesses needed federal emergency assistance to stay afloat during a pandemic, and these defendants allegedly misdirected millions of dollars of that assistance money to their own pockets for luxury items,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Their alleged greed affects every American taxpayer, and the FBI is making every effort possible to stop it and make sure PPP funds are used as intended.”

“When tragedy strikes and citizens find themselves in a vulnerable situation to no fault of their own, the influx of government assistance unfortunately also attracts criminals,” said IRS-Criminal Investigation Special Agent in Charge James E. Dorsey.  “While the government is helping those in need, law enforcement is swiftly addressing these vulnerabilities.  IRS-CI will continue to help illuminate these criminal deeds with our financial expertise.”

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

“Scheming to fraudulently obtain federal funds that are meant to provide assistance to nation’s small businesses is unacceptable,” said SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite. “Our Office will remain relentless in the pursuit of fraudsters who seek to exploit SBA’s vital economic programs. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and commitment to seeing justice served.”

According to Acting U.S. Attorney Erskine, the first superseding indictment, 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 fourteen businesses, seeking loans of approximately $700,000 - $850,000 for each company:

Business Name

PPP Loan Amount

Bellator Phront Group Inc.

$799,955.35

Impact Creations LLC

$830,000

Gaines Reservation and Travel

$806,710

Transportation Management Services

$830,417

Lee Operations LLC

$805,813

RK Painting Co.

$775,000

D Parker Holdings Inc.

$818,102

Continuing Success Inc.

$727,000

All Star Room & Board Services of Michigan Inc.

$737,965

Infinite Education Services Inc.

$854,805

ML Exotic Customs Inc.

$797,275

Bellevie Corp.

$823,585

Advertising and Then Some Inc.

$760,207

Mickies Auto and Tires LLC

$787,160

Total

$11,153,994

In the loan applications, the defendants certified that each applicant business was in operation on February 15, 2020 and had employees for whom it paid salaries and payroll taxes or paid independent contractors; that the funds would be used to retain workers and maintain payroll or make mortgage interest payments, lease payments, and utility payments; and that the information provided in the application and in all supporting documents and forms was true and accurate in all material respects.

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

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

Fourteen additional defendants were charged in a First Superseding Indictment unsealed on Wednesday, July 14, 2021:

• Ricky Dixon, 52, of Warren, Michigan, is charged with conspiracy to commit bank fraud and wire fraud, bank fraud, wire fraud, false statements to a federally insured financial institution, aggravated identity theft, and money laundering in connection with his involvement in the loan obtained by his business, RK Painting Co., and several other businesses’ loans.

• Meghan Thomas, 32, of Alpharetta, Georgia, is charged with conspiracy to commit bank fraud and wire fraud, bank fraud, wire fraud, and false statements to a federally insured financial institution in connection with her involvement in several businesses’ loans.

• Jesika Blakely, 34, of Atlanta, Georgia, is charged with conspiracy to commit bank fraud and wire fraud, bank fraud, wire fraud, false statements to a federally insured financial institution, and money laundering in connection with her involvement in several businesses’ loans.

• Amanda Christian, 33, of Blythewood, South Carolina, is charged with conspiracy to commit bank fraud and wire fraud, bank fraud, wire fraud, and false statements to a federally insured financial institution in connection with her involvement in the loan obtained by her business, Advertising and Then Some Inc., and several other businesses’ loans.

• Dwan Ashong a/k/a Dwan Gilpin, 40, of Jacksonville, Florida, is charged with conspiracy to commit wire fraud, wire fraud, and money laundering in connection with her involvement in several businesses’ loans.

• John Gaines a/k/a Marty Gaines, 56, of Marietta, Georgia, is charged with conspiracy to commit bank fraud and wire fraud, bank fraud, wire fraud, false statements to a federally insured financial institution, and money laundering in connection with the loan obtained by Gaines Reservation and Travel.

• Charles Petty a/k/a Charles Knight, 48, of Atlanta, Georgia, is charged with conspiracy to commit bank fraud and wire fraud, bank fraud, wire fraud, false statements to a federally insured financial institution, and money laundering in connection with the loan obtained by Transportation Management Services Inc.

• Jerry Baptiste, 43, of College Park, Georgia, is charged with conspiracy to commit bank fraud and wire fraud, bank fraud, wire fraud, false statements to a federally insured financial institution, and money laundering in connection with the loan obtained by Transportation Management Services Inc.

• Derek Parker, 56, of Rochester Hills, Michigan, is charged with conspiracy to commit wire fraud, wire fraud, and money laundering in connection with the loan obtained by his business, D Parker Holdings Inc.

• David Belgrave II, 49, of Lexington, South Carolina, is charged with conspiracy to commit bank fraud and wire fraud, bank fraud, wire fraud, false statements to a federally insured financial institution, and money laundering in connection with the loan obtained by his business, Continuing Success Inc.

• Charles Hill IV, 45, of Norcross, Georgia, is charged with conspiracy to commit wire fraud, wire fraud, and money laundering in connection with the loan obtained by his business, Infinite Education Services Inc.

• Ryan Whittley, 35, of South Holland, Illinois, is charged with conspiracy to commit wire fraud, wire fraud, and money laundering in connection with the loan obtained by his business, ML Exotic Customs Inc.

• El Hadj Sall, 39, of Jacksonville, Florida, is charged with conspiracy to commit wire fraud, wire fraud, and money laundering in connection with the loan obtained by his business, Bellevie Corp.

• Rick McDuffie, 50, of Little Rock, South Carolina, is charged with conspiracy to commit wire fraud and wire fraud in connection with the loan obtained by his business, Mickies Auto and Tire LLC.

Three additional defendants have been charged by Criminal Information:

• Teldrin Foster, 39, of Decatur, Georgia, is charged with conspiracy to commit wire fraud in connection with the loan obtained by Bellator Phront Group Inc.

• Denesseria Slaton, 52, of Stockbridge, Georgia, is charged with conspiracy to commit bank fraud and wire fraud in connection with the loan obtained by Transportation Management Services Inc.

• Charmaine Redding, 27, of Macomb, Michigan, is charged with conspiracy to commit wire fraud in connection with the loan obtained by her business, All Star Room and Board Services of Michigan Inc.

• Another defendant, Carla Jackson, 53, of Tucker, Georgia, was previously charged by indictment on August 4, 2020 with money laundering in connection with laundering the proceeds of Gaines Reservation and Travel’s PPP loan. 

Six defendants have pleaded guilty based on their roles in the fraudulent scheme since the original indictment was returned on August 4, 2020, including the mastermind, Darrell Thomas, and one defendant has been sentenced to date:

• Darrell Thomas, 35, of Duluth, Georgia, pleaded guilty on June 16, 2021 to one count of conspiracy to commit bank fraud and wire fraud and one count of money laundering.  As part of his guilty plea, Darrell Thomas admitted his participation in fraudulent conduct totaling more than $14.7 million, including more than $11.1 million in fraudulent PPP loans, more than $1.15 million in fraudulent Economic Injury Disaster Loans, and more than $2.4 million in fraudulent automobile loans.  He also agreed to forfeit various assets, including more than $2.1 million in seized funds, three luxury vehicles – a 2018 Mercedes-Benz S-Class S65AMG, a 2018 Land Rover Range Rover, and a 2017 Acura NSX – and several items of jewelry, including a gold Rolex.  Darrell Thomas’s sentencing is set for September 15, 2021 before Judge J.P. Boulee.   

• Denesseria Slaton, pleaded guilty on June 16, 2021 to one count of conspiracy to commit bank fraud and wire fraud in connection with the loan obtained by Transportation Management Services Inc.  Slaton’s sentencing is set for October 6, 2021.

• Khalil Gibran Green, Sr., 47, of Cleveland, Ohio, pleaded guilty on September 1, 2020, to one count of conspiracy to commit bank fraud and wire fraud in connection with the loan obtained by his business, Impact Creations LLC.  On January 14, 2021, Judge J.P. Boulee sentenced Green to three years and five months’ imprisonment and five years of supervised release, and Judge Boulee ordered him to pay $830,000 in restitution, forfeiture of $157,035.71, and a special assessment of $100. 

• Bern Benoit, 45, of Burbank, California, pleaded guilty on March 11, 2021 to one count of conspiracy to commit bank fraud and wire fraud in connection with the loan obtained by his business, Transportation Management Services Inc.  Benoit’s sentencing is set for September 8, 2021 before Judge J.P. Boulee.

• Charmaine Redding, pleaded guilty on July 14, 2021 to one count of conspiracy to commit wire fraud in connection with the loan obtained by her business, All Star Room and Board Services of Michigan Inc.  Redding’s sentencing is set for October 21, 2021 before Judge J.P. Boulee.

• Andre Lee Gaines, 67, of Dallas, Georgia, pleaded guilty on June 17, 2021 to one count of making false statements to the FBI in connection with the loan obtained by his business, Gaines Reservation and Travel.  Andre Gaines’s sentencing is set for October 6, 2021 before Judge J.P. Boulee.

Members of the public are reminded that the indictment contains only charges.

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

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

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

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

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

Seventeen more individuals have been charged in connection with a fraudulent scheme to obtain approximately $11.1 million in Paycheck Protection Program (PPP) loans and to use those funds to purchase luxury vehicles, jewelry and other personal items.

According to court documents and statements made in court, between May and August 2020, the defendants submitted, or assisted in the submission of, PPP loan applications on behalf of 14 businesses seeking loans of approximately $800,000 for each company. In the loan applications, the defendants certified that each applicant business was in operation on Feb. 15, 2020, and had employees for whom it paid salaries and payroll taxes or that it paid independent contractors; that the funds would be used to retain workers and maintain payroll or to make mortgage interest payments, lease payments and utility payments; and that the information provided in the application and in all supporting documents was true and accurate in all material respects.

In the PPP loan applications, each business reported that it had approximately 60 employees and approximately $300,000 in average monthly payroll expenses. To support these payroll figures, each business’s loan application was accompanied by an IRS Form 941, which employers use to report payroll taxes. But, in reality, each Form 941 was fraudulent.  

After the PPP loan proceeds were deposited into the businesses’ accounts, the funds were distributed to conspirators through a series of transactions that were devised to disguise the origins of the funds and how the funds were spent. The defendants and co-conspirators used the PPP loan proceeds to purchase luxury goods, including two Range Rovers, an Acura NSX, and a Mercedes Benz S-Class S65 AMG.

Seventeen Additional Defendants Charged

Fourteen defendants were charged in a first superseding indictment unsealed on July 14, including:

Ricky Dixon, 52, of Warren, Michigan, is charged with conspiracy to commit bank fraud and wire fraud, bank fraud, wire fraud, false statements to a federally insured financial institution, aggravated identity theft, and money laundering in connection with his involvement in the loan obtained by his business, RK Painting Co., and several other businesses’ loans.

Meghan Thomas, 32, of Alpharetta, Georgia, is charged with conspiracy to commit bank fraud and wire fraud, bank fraud, wire fraud, and false statements to a federally insured financial institution in connection with her involvement in several businesses’ loans.

Jesika Blakely, 34, of Atlanta, Georgia, is charged with conspiracy to commit bank fraud and wire fraud, bank fraud, wire fraud, false statements to a federally insured financial institution, and money laundering in connection with her involvement in several businesses’ loans.

Amanda Christian, 33, of Blythewood, South Carolina, is charged with conspiracy to commit bank fraud and wire fraud, bank fraud, wire fraud, and false statements to a federally insured financial institution in connection with her involvement in the loan obtained by her business, Advertising and Then Some Inc., and several other businesses’ loans.

Dwan Ashong, aka Dwan Gilpin, 40, of Jacksonville, Florida, is charged with conspiracy to commit wire fraud, wire fraud, and money laundering in connection with her involvement in several businesses’ loans.

John Gaines, aka Marty Gaines, 56, of Marietta, Georgia, is charged with conspiracy to commit bank fraud and wire fraud, bank fraud, wire fraud, false statements to a federally insured financial institution, and money laundering in connection with the loan obtained by Gaines Reservation and Travel.

Charles Petty, aka Charles Knight, 48, of Atlanta, Georgia, is charged with conspiracy to commit bank fraud and wire fraud, bank fraud, wire fraud, false statements to a federally insured financial institution, and money laundering in connection with the loan obtained by Transportation Management Services Inc.

Jerry Baptiste, 43, of College Park, Georgia, is charged with conspiracy to commit bank fraud and wire fraud, bank fraud, wire fraud, false statements to a federally insured financial institution, and money laundering in connection with the loan obtained by Transportation Management Services Inc.

Derek Parker, 56, of Rochester Hills, Michigan, is charged with conspiracy to commit wire fraud, wire fraud, and money laundering in connection with the loan obtained by his business, D Parker Holdings Inc.

David Belgrave II, 49, of Lexington, South Carolina, is charged with conspiracy to commit bank fraud and wire fraud, bank fraud, wire fraud, false statements to a federally insured financial institution, and money laundering in connection with the loan obtained by his business, Continuing Success Inc.

Charles Hill IV, 45, of Norcross, Georgia, is charged with conspiracy to commit wire fraud, wire fraud, and money laundering in connection with the loan obtained by his business, Infinite Education Services Inc.

Ryan Whittley, 35, of South Holland, Illinois, is charged with conspiracy to commit wire fraud, wire fraud, and money laundering in connection with the loan obtained by his business, ML Exotic Customs Inc.

El Hadj Sall, 39, of Jacksonville, Florida, is charged with conspiracy to commit wire fraud, wire fraud, and money laundering in connection with the loan obtained by his business, Bellevie Corp.

Rick McDuffie, 50, of Little Rock, South Carolina, is charged with conspiracy to commit wire fraud and wire fraud in connection with the loan obtained by his business, Mickies Auto and Tire LLC.

Three additional defendants have been charged by criminal information:

Teldrin Foster, 39, of Decatur, Georgia, is charged with conspiracy to commit wire fraud in connection with the loan obtained by Bellator Phront Group Inc.

Denesseria Slaton, 52, of Stockbridge, Georgia, is charged with conspiracy to commit bank fraud and wire fraud in connection with the loan obtained by Transportation Management Services Inc.

Charmaine Redding, 27, of Macomb, Michigan, is charged with conspiracy to commit wire fraud in connection with the loan obtained by her business, All Star Room and Board Services of Michigan Inc.

Another defendant, Carla Jackson, 53, of Tucker, Georgia, was previously charged by indictment on Aug. 4, 2020, with money laundering in connection with laundering the proceeds of Gaines Reservation and Travel’s PPP loan. 

If convicted, the defendants face a maximum penalty of 20 years in prison on the wire fraud and money laundering charges and a maximum of 30 years on the bank fraud and false statement to a federally insured bank charge. Dixon also faces an additional two-year sentence on the aggravated identity theft charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Six Plead Guilty, Including Mastermind

Six defendants have pleaded guilty based on their roles in the fraudulent scheme since the original indictment was returned on August 4, 2020, including the mastermind, Darrell Thomas, and one defendant has been sentenced to date:

Darrell Thomas, 35, of Duluth, Georgia, pleaded guilty on June 16, to one count of conspiracy to commit bank fraud and wire fraud and one count of money laundering. As part of his guilty plea, Darrell Thomas admitted his participation in fraudulent conduct totaling more than $14.7 million, including approximately $11.2 million in fraudulent PPP loans, more than $1.15 million in fraudulent Economic Injury Disaster Loans, and more than $2.4 million in fraudulent automobile loans. He also agreed to forfeit various assets, including more than $2.1 million in seized funds, three luxury vehicles – a 2018 Mercedes-Benz S-Class S65AMG, a 2018 Land Rover Range Rover, and a 2017 Acura NSX – and several items of jewelry, including a gold Rolex. Darrell Thomas’s sentencing is set for Sept. 15, before Judge J.P. Boulee.   

Denesseria Slaton, pleaded guilty on June 16, to one count of conspiracy to commit bank fraud wire fraud in connection with the loan obtained by Transportation Management Services Inc. Slaton’s sentencing is set for Oct. 6.

Khalil Gibran Green Sr., 47, of Cleveland, Ohio, pleaded guilty on Sept. 1, 2020, to one count of conspiracy to commit bank fraud and wire fraud in connection with the loan obtained by his business, Impact Creations LLC. On Jan. 14, Judge J.P. Boulee sentenced Green to three years and five months in prison and five years of supervised release, and ordered him to pay $830,000 in restitution and forfeiture of $157,035.71.

Bern Benoit, 45, of Burbank, California, pleaded guilty on March 11, to one count of conspiracy to commit bank fraud and wire fraud in connection with the loan obtained by his business, Transportation Management Services Inc. Benoit’s sentencing is set for Sept. 8, before Judge J.P. Boulee.

Charmaine Redding, pleaded guilty on July 14, to one count of conspiracy to commit wire fraud in connection with the loan obtained by her business, All Star Room and Board Services of Michigan Inc. Redding’s sentencing is set for Oct. 21, before Judge J.P. Boulee.

Andre Lee Gaines, 67, of Dallas, Georgia, pleaded guilty on June 17, to one count of making false statements to the FBI in connection with the loan obtained by his business, Gaines Reservation and Travel. Andre Gaines’s sentencing is set for Oct. 6, before Judge J.P. Boulee.

Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division and Acting U.S. Attorney Kurt R. Erskine of the Northern District of Georgia made the announcement.

This case is being investigated by the FBI, the U.S. Treasury Inspector General for Tax Administration, and the Small Business Administration-Office of the Inspector General.

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

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 - Santwon Antonio Davis has been sentenced for wire fraud related to a scheme to defraud his employer, and on a bank fraud charge related to a scheme to defraud a mortgage company.

“Davis defrauded his employer twice by requesting and receiving paid time off from work for the alleged death of his child, and then claiming that he had tested positive for COVID-19,” said Acting U.S. Attorney Kurt R. Erskine.  “Both of those claims were false.  After he was arrested for defrauding his employer, and while he was under court supervision, he committed yet another crime, by filing a fraudulent mortgage application.  Davis’ actions show he had little regard for the law.” 

“Davis’ history of lies caught up to him when he took advantage of a pandemic and caused undue harm to the company he worked for and their employees,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “While receiving numerous complaints of wrongdoing during this pandemic, the FBI and our federal partners remain determined to detect, investigate and prosecute any fraud related to this crisis.”

According to Acting U.S. Attorney Erskine, the charges and other information presented in court: Davis, who was employed by a Fortune 500 company with a facility located in the Atlanta, Georgia area, falsely claimed to have contracted COVID-19 and submitted a fake medical record to his employer. In concern for its employees, the corporation closed its facility for cleaning and paid its employees during the shutdown. This caused a significant financial loss to the corporation and the unnecessary quarantine of the defendant’s coworkers.

During the COVID-19 fraud investigation, agents uncovered a previous incident in which Davis had submitted fraudulent documentation to obtain benefits from his employer. Specifically, in late 2019, Davis created and submitted false documentation to support a claim for bereavement leave for the alleged death of his child. That child never existed., Davis fabricated the claim so that he could obtain benefits to which he was not entitled.

Finally, while on pretrial release in this case, Davis submitted a mortgage application with numerous fraudulent statements, including a falsified earnings and employment history. The mortgage company discovered the fraud, in part, after seeing news stories related to his original COVID-19 charge.

Santwon Antonio Davis, 35, of Atlanta, Georgia, was sentenced by U.S. District Judge William M. Ray, II to serve three years in prison and ordered to pay $187.550 in restitution to his former employer. When he is released from prison, Davis will be required to serve five years on supervised release.

This case is part of Georgia’s Coronavirus (COVID-19) Fraud Task Force, aimed at better protecting the citizens of Georgia from criminal fraud arising from the pandemic. Formed by Georgia’s leading state and federal prosecutors, the task force serves to open channels of communication between partner agencies and more rapidly share information about COVID-19 fraud, while ensuring each fraud complaint is reported to the appropriate prosecuting agency. The task force member agencies include the Office of the Governor of Georgia, the Office of the Attorney General of Georgia, the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Attorney’s Office for the Middle District of Georgia and the U.S. Attorney’s Office for the Southern District of Georgia. Georgia’s three U.S. Attorneys, the Attorney General of Georgia, and the Executive Counsel for the Governor’s Office serve on the task force. If you think you are a victim of a scam or attempted fraud involving COVID-19, contact the National Center for Disaster Fraud Hotline at 866-720-5721 or via email at www.justice.gov/DisasterComplaintForm.

This case was investigated by the Federal Bureau of Investigation. The U.S. Department of Housing and Urban Development’s Office of Inspector General provided valuable assistance in the investigation.

Assistant U.S. Attorneys Sarah Klapman 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.

ROME, Ga. – Juan Antonio Perez has pleaded guilty to the offense of harboring illegal aliens for financial gain.  Perez illegally encouraged and induced aliens illegally present in the United States to reside in the United States where they worked for him illegally for his own commercial advantage and private financial gain.

“Perez endangered the livelihood of those who follow the laws governing employment, as well as the lives of those who attempt to illegally enter the United States seeking jobs like those he provided,” said Acting U.S. Attorney Kurt R. Erskine. “Perez used illegal workers for his own personal financial gain without regard for the laws of this country.”

“The old saying that crime doesn’t pay couldn’t be truer than in this instance. Perez thought his scheme to exploit desperate people looking for work and a better life would go unnoticed, but he was wrong and will now be held accountable,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Preventing the exploitation of people and protecting the integrity of the US immigration system are hallmarks of HSI’s mission and I’m proud of the work done in this case.”  

According to Acting U.S. Attorney Erskine, the charge, and other information presented in court: Juan Antonio Perez allegedly came to the United States illegally in 1992. He has lived in Bartow County, Georgia and has operated Aztec Framing at least since 2009. Aztec Framing has offices in Cartersville and Rossville, Georgia, and Hixon, Tennessee.

Perez employed illegal aliens at below-market rates, provided no benefits or insurance, and did not pay payroll taxes or Social Security. Perez built a 7,500-square-foot house, bought other houses where he allowed some of his employees to live, and purchased more than 30 sports cars and heavily customized trucks for his own personal collection. Yet, the Georgia Department of Labor has no record of Perez reporting any income. Perez also collected firearms, and agents located 14 firearms when his home was searched on April 30, 2019.

On July 7, 2021, Juan Antonio Perez, age 48, of Rydal, Georgia, pleaded guilty to knowingly encouraging and inducing aliens to come to, enter, and reside in the United States for the purpose of commercial advantage and private financial gain, knowing or in reckless disregard of the fact that such coming to, entry, and residence in the United States was in violation of law. Sentencing for Perez is scheduled for October 5, 2021 at 10:00 a.m.

This case is being investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), and the Bartow-Cartersville Drug Task Force, with assistance from the Federal Bureau of Investigation, U.S. Customs and Border Protection Air and Marine Operations, the Georgia Bureau of Investigation, the Cherokee Multi-Agency Narcotics Squad, and the Polk County Drug Task Force.

Assistant U.S. Attorney Greg Radics is prosecuting the case.

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

ATLANTA - A federal jury found Hakim Amal Archible guilty of three counts of filing or attempting to file false liens against federal officials and one count of obstructing or impeding the due administration of the Internal Revenue Service on July 2, 2021.

“In this case, the defendant filed false liens against current and former public officials to bully and harass them,” said Acting U.S. Attorney Kurt R. Erskine. “Archible learned that our office will vigorously pursue individuals who improperly weaponize the lien system in Georgia.”

“TIGTA’s statutory mission includes investigating individuals who are alleged to pose a threat to IRS employees engaged in the lawful collection of taxes,” said J. Russell George, the Treasury Inspector General for Tax Administration.  “Attempts to intimidate or retaliate against 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 Acting U.S. Attorney Erskine, the charges and other information presented in court: The evidence at trial showed that in October of 2014, Archible received an IRS tax penalty letter for $5,000 for filing frivolous tax returns. In retaliation, Archible filed false liens against the former Secretary of the U.S. Treasury and the former IRS Commissioner with the Fayette County Clerk of Court in 2014 and 2015. The liens were in amounts ranging from $5,000 to $100 billion and named the federal officials as debtors, and responsible parties for Archible's financial liabilities.

Archible also filed false liens against Georgia State officials. Archible targeted Henry County, Georgia officials, including the Clerk of Court, District Attorney, and Superior Court Judge, because he was being prosecuted there on unrelated charges. Archible's conduct demonstrated a pattern of harassment and retaliation.

Sentencing for Hakim Amal Archible, 29, of Hampton, Georgia, is scheduled for October 1, 2021, at 10:00 a.m. before U.S. District Judge Thomas W. Thrash.

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

Assistant U.S. Attorneys Angela Adams and Erin N. Spritzer 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.

ROME, Ga. - Shane Terhune, who sold heroin to a young couple just hours before the woman’s July 2018 overdose death, pleaded guilty to a charge of distributing that heroin, and admitted to causing the victim’s death.

“Terhune’s act of trafficking narcotics tragically ended the life of a young woman,” said Acting U.S. Attorney Kurt R. Erskine. “Opioid overdoses will be investigated as a federal priority and those who sell this poison will be held accountable for the death and serious injury that it causes.”

“The life of a young lady abruptly ended when Shane Terhune provided her with a deadly dose of heroin.  DEA and its law enforcement partners are committing to bringing to justice, defendants like Mr. Terhune who pollute our streets with dangerous and deadly substances which cause immeasurable damage to our communities,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Field Division.

According to Acting U.S. Attorney Erskine, the charges and other information presented in court: On July 6, 2018, officers of the Floyd County Police Department responded to a 911 call seeking medical attention for 25-year-old G.L.  She died of a heroin overdose that night. The investigation revealed that earlier that afternoon, Terhune met G.L. and her fiancé at a location in Rome, Georgia, and gave them a plastic bag containing heroin in exchange for cash. G.L. subsequently injected the heroin Terhune sold, causing her death.

With this guilty plea, Terhune, who has a history of drug trafficking offenses, admitted to trafficking in heroin and acknowledged that the heroin he sold caused the victim’s death.

Sentencing for Shane Terhune, 41, of Rome, Georgia, is scheduled for October 19, 2021, at 10:00 a.m., before U.S. District Court Judge Steve C. Jones.

This case is being investigated by the Drug Enforcement Administration.

Assistant U.S. Attorney Irina Dutcher is prosecuting the case.

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

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

ATLANTA – Ben’Andre Javon Goolsby has been sentenced to prison for unlawfully acquiring dozens of firearms, several of which were later recovered by police at various crime scenes in the metro-Atlanta area and beyond.

“Goolsby’s illegal purchases of firearms helped fuel the violence in our community,” said Acting U.S. Attorney Kurt R. Erskine.  “Those who illegally receive, possess, and peddle weapons face prosecution and significant federal prison terms for their actions.”

“By putting guns in the hands of criminals, Mr. Goolsby has violated the trust of his community, the trust of those he should care about and has contributed to the unnecessary violence in our communities,” said Arthur Peralta, ATF Special Agent in Charge.  “It is not okay to buy guns for people who cannot legally own them and doing so has consequences.”

According to Acting U.S. Attorney Erskine, the charges and other information presented in court: From October 2017 through the date of his arrest in May 2020, Ben’Andre Javon Goolsby purchased 33 pistols from a federally licensed firearms dealer in Jonesboro, Georgia.  Most of the firearms were 9mm and .40 caliber pistols.  On several occasions, Goolsby purchased multiple guns of identical make, model, and caliber within a single week.  

During each transaction, Goolsby falsely stated to the firearms dealer that he was not under indictment for a felony offense.  In fact, Goolsby knew at the time of each of his many purchases that he had been indicted in Rockdale County, Georgia, for a smash-and-grab burglary and other crimes.  Those charges related to a 2014 break-in at a pawn shop from which Goolsby and others stole numerous firearms.  Because federal law prohibits any person under indictment from receiving firearms, each of Goolsby’s purchases was unlawful.

Several of the guns that Goolsby purchased found their way into the hands of people who sought to—and did—use them unlawfully.  For example, in September 2018, police officers in Forest Park, Georgia, pulled over a car in which one of the 9mm pistols Goolsby bought was found alongside two other guns, pepper spray, walkie-talkies, and a taser.  The vehicle’s occupants were dressed entirely in black and had black masks and gloves. 

In June 2019, sheriff’s deputies in Decatur, Georgia, found another of Goolsby’s 9mm pistols in the possession of a fugitive who was wanted on aggravated assault charges.  A month later, also in Decatur, police confiscated a Goolsby-purchased .40 caliber pistol from a 19-year-old suspected of robbing a jewelry store and burglarizing a dollar store and gas station.

Ben’Andre Javon Goolsby, 25, of Atlanta, Georgia, was sentenced on June 25, 2021, by U.S. District Judge Michael L. Brown, to three years, four months in prison to be followed by three years of supervised release.  Goolsby was convicted of making false statements to a federally licensed firearms dealer and unlawful receipt of a firearm, after he pleaded guilty on January 11, 2021.

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

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.

ATLANTA – The Atlanta Police Foundation’s At Promise Center hosted the inaugural event for the Project Safe Neighborhoods (PSN) Credible Messenger Youth Summer Violence Intervention (the “Summer Intervention”), a joint project of the U.S. Attorney’s Office for the Northern District of Georgia and the Fulton County District Attorney’s Office. 

“We know from experience that intensive mentoring, such as that provided by our PSN Credible Messenger partners, decreases recidivism and bolsters community safety,” said Acting U.S. Attorney Kurt R. Erskine. “The enthusiasm for this project highlights the recognition among our partners, as well as the law enforcement leaders who support these youth, that prevention and violence interruption must play a central role in making Atlanta safer.” 

“Our partnership with the At Promise Youth Center is an important part of our effort to provide young people in Fulton County with a better path forward.  We are thrilled that the U.S. Attorney's Office and the Atlanta Police Foundation are working with us this summer to prevent violence through intensive engagement with at risk young people.  This program will help the participants live better lives and make our community safer and stronger,” said Fulton County District Attorney Fani Willis.

The Summer Intervention will engage up to 20 youth between the ages of 13 and 17 who are on juvenile or adult probation, in a 10-week intensive mentorship initiative. Through 10 hours of mentor engagement per week, youth will participate in support forums, career readiness training, community engagement and an evidenced-based, cognitive-behavioral, life-skills session utilizing the Forward Thinking and Project EGRESS Curriculum.  Youth who satisfy the program’s requirements will receive a weekly stipend, made possible by a generous donation from the Arthur M. Blank Family Foundation. 

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

We would also like to thank leadership from the Atlanta field offices of the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Atlanta Police Department for their attendance and support of this inaugural event to provide encouragement to the invited youth. 

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 - Juan Carlos Torres-Carranza and Luis Pineda-Soto have been sentenced for conspiracy to possess with intent to distribute 418.95 kilograms of methamphetamine. 

"The trafficking of large amounts of methamphetamine into and through the Northern District of Georgia continues to be a problem," said Acting U.S. Attorney Kurt R. Erskine.  "We and our law enforcement partners are using every tool available to combat this scourge, which breeds violent crime, and presents a major public health risk."

"This is a significant amount of poison that thankfully won’t reach the streets of our communities and continue to destroy lives," said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Cases like this are only possible because of the hard work and dedication of our agents, officers and law enforcement partners, and I am proud of their efforts.”

According to Acting U.S. Attorney Erskine, the charges and other information presented in court: On June 1, 2020, Homeland Security Investigations (HSI) agents began conducting visual surveillance at a warehouse located in McDonough, Georgia.  The following day, as HSI agents continued their surveillance, they saw a semi-tractor trailer arrive at the warehouse.  The trailer was then unhooked and the semi-tractor that was pulling the trailer drove off.  According to Homeland Security databases, the trailer was taken across the border into the United States from Mexico on May 20, 2020.

Agents continued to perform surveillance on the warehouse and the trailer into the late evening and early morning hours of June 3, 2020.  At approximately 11:30 p.m., Pineda-Soto and Torres-Carranza, driving a pickup truck, and another individual driving a car arrived at the warehouse.  Shortly after arriving, all three individuals began working on the trailer over the next several hours, climbing on the top of the trailer, using power tools to remove panels from the top of the trailer, and dropping bundles of drugs from the top of the trailer to the ground.  This process continued until 4:45 a.m. on June 3, 2020.

Before sunrise, the three individuals left the warehouse.  Agents followed both vehicles until they split up and went in different directions.  Agents following the pickup truck requested the assistance of the Clayton County Police Department who conducted a traffic stop.  During a search of the truck, law enforcement found multiple black trash bags in the truck bed containing a total of 77 bundles of narcotics consistent with the bundles agents witnessed being removed from the trailer.  Several of the bundles had cords attached to them, consistent with narcotics that are hidden in hard to reach voids found in semi-trailers, which are used as a method to retrieve the narcotics.  In total, the bundles weighed 52 kilograms. 

Simultaneously, agents followed the individual in the car to a house located in Ellenwood, Georgia.  Once that individual arrived at the house, agents watched as he pulled into the garage, staying at the house for approximately ten minutes, long enough to unload anything stored in the trunk of the vehicle.  HSI subsequently obtained a federal search warrant for the house and searched it on the afternoon of June 3, 2020.  It was unoccupied and contained no furniture.  However, in a closet near the front door, law enforcement found 66 black bundles of methamphetamine similar to the bundles found during the stop of the pickup truck.  The bundles weighed approximately 51.45 kilograms.

HSI also obtained a federal search warrant for the trailer located at the warehouse.  It was searched on June 4, 2020.  Inside hidden compartments in the roof, law enforcement found 446 bundles of methamphetamine similar to those previously seized, weighing 315.5 kilograms.  In all, between the three searches, HSI seized 418.95 kilograms of methamphetamine

Juan Carlos Torres-Carranza, 28, and Luis Pineda-Soto, 26, both of Michoacan, Mexico, who were both present in the United States illegally at the time of their crimes, were convicted of conspiracy to possess a controlled substance with the intent to distribute on March 22, 2021 after pleading guilty.  U.S. District Judge Steve C. Jones sentenced each of them on June 22, 2021, to five years, three months in prison for their role in the conspiracy, followed by five years of supervised release. 

Assistant U.S. Attorney Miguel R. Acosta prosecuted the case.

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

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

ATLANTA - Juan Carlos Torres-Carranza and Luis Pineda-Soto have been sentenced for conspiracy to possess with intent to distribute 418.95 kilograms of methamphetamine. 

“The trafficking of large amounts of methamphetamine into and through the Northern District of Georgia continues to be a problem,” said Acting U.S. Attorney Kurt R. Erskine.  “We and our law enforcement partners are using every tool available to combat this scourge, which breeds violent crime, and presents a major public health risk.”

“This is a significant amount of poison that thankfully won’t reach the streets of our communities and continue to destroy lives,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Cases like this are only possible because of the hard work and dedication of our agents, officers and law enforcement partners, and I am proud of their efforts.”

According to Acting U.S. Attorney Erskine, the charges and other information presented in court: On June 1, 2020, Homeland Security Investigations (HSI) agents began conducting visual surveillance at a warehouse located in McDonough, Georgia.  The following day, as HSI agents continued their surveillance, they saw a semi-tractor trailer arrive at the warehouse.  The trailer was then unhooked and the semi-tractor that was pulling the trailer drove off.  According to Homeland Security databases, the trailer was taken across the border into the United States from Mexico on May 20, 2020.

Agents continued to perform surveillance on the warehouse and the trailer into the late evening and early morning hours of June 3, 2020.  At approximately 11:30 p.m., Pineda-Soto and Torres-Carranza, driving a pickup truck, and another individual driving a car arrived at the warehouse.  Shortly after arriving, all three individuals began working on the trailer over the next several hours, climbing on the top of the trailer, using power tools to remove panels from the top of the trailer, and dropping bundles of drugs from the top of the trailer to the ground.  This process continued until 4:45 a.m. on June 3, 2020.

Before sunrise, the three individuals left the warehouse.  Agents followed both vehicles until they split up and went in different directions.  Agents following the pickup truck requested the assistance of the Clayton County Police Department who conducted a traffic stop.  During a search of the truck, law enforcement found multiple black trash bags in the truck bed containing a total of 77 bundles of narcotics consistent with the bundles agents witnessed being removed from the trailer.  Several of the bundles had cords attached to them, consistent with narcotics that are hidden in hard to reach voids found in semi-trailers, which are used as a method to retrieve the narcotics.  In total, the bundles weighed 52 kilograms. 

Simultaneously, agents followed the individual in the car to a house located in Ellenwood, Georgia.  Once that individual arrived at the house, agents watched as he pulled into the garage, staying at the house for approximately ten minutes, long enough to unload anything stored in the trunk of the vehicle.  HSI subsequently obtained a federal search warrant for the house and searched it on the afternoon of June 3, 2020.  It was unoccupied and contained no furniture.  However, in a closet near the front door, law enforcement found 66 black bundles of methamphetamine similar to the bundles found during the stop of the pickup truck.  The bundles weighed approximately 51.45 kilograms.

HSI also obtained a federal search warrant for the trailer located at the warehouse.  It was searched on June 4, 2020.  Inside hidden compartments in the roof, law enforcement found 446 bundles of methamphetamine similar to those previously seized, weighing 315.5 kilograms.  In all, between the three searches, HSI seized 418.95 kilograms of methamphetamine

Juan Carlos Torres-Carranza, 28, and Luis Pineda-Soto, 26, both of Michoacan, Mexico, who were both present in the United States illegally at the time of their crimes, were convicted of conspiracy to possess a controlled substance with the intent to distribute on March 22, 2021 after pleading guilty.  U.S. District Judge Steve C. Jones sentenced each of them on June 22, 2021, to five years, three months in prison for their role in the conspiracy, followed by five years of supervised release. 

Assistant U.S. Attorney Miguel R. Acosta prosecuted the case.

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

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

ATLANTA - The U.S. Justice Department announced today that it filed a lawsuit against the State of Georgia, the Georgia Secretary of State, and the Georgia State Election Board over recent voting procedures adopted by Georgia Senate Bill 202, which was signed into law in March 2021. The United States' complaint challenges provisions of Senate Bill 202 under Section 2 of the Voting Rights Act.

"The right of all eligible citizens to vote is the central pillar of our democracy, the right from which all other rights ultimately flow," said Attorney General Merrick B. Garland.  "This lawsuit is the first step of many we are taking to ensure that all eligible voters can cast a vote; that all lawful votes are counted; and that every voter has access to accurate information."

"The right to vote is one of the most central rights in our democracy and protecting the right to vote for all Americans is at the core of the Civil Rights Division’s mission," said Assistant Attorney General Kristen Clarke for Justice Department's Civil Rights Division. "The Department of Justice will use all the tools it has available to ensure that each eligible citizen can register, cast a ballot, and have that ballot counted free from racial discrimination. Laws adopted with a racially motivated purpose, like Georgia Senate Bill 202, simply have no place in democracy today."

"One of the fundamental rights of our democracy is the right to vote.  That right should be protected for every citizen of our district, regardless of race," said Acting U.S. Attorney Kurt R. Erskine for the Northern District of Georgia. "The United States Attorney’s Office for the Northern District of Georgia is committed to protecting the rights of all Americans to vote."    

The United States' complaint contends that several provisions of Senate Bill 202 were adopted with the purpose of denying or abridging the right to vote on account of race.  The Justice Department's lawsuit alleges that the cumulative and discriminatory effect of these laws—particularly on Black voters—was known to lawmakers and that lawmakers adopted the law despite this.

The United States' complaint challenges several provisions of Senate Bill 202, including a provision banning government entities from distributing unsolicited absentee ballot applications; the imposition of costly and onerous fines on civic organizations, churches and advocacy groups that distribute follow-up absentee ballot applications; the shortening of the deadline to request absentee ballots to 11 days before Election Day; the requirement that voters who do not have identification issued by the Georgia Department of Driver Services photocopy another form of identification in order to request an absentee ballot without allowing for use of the last four digits of a social security number for such applications; significant limitations on counties’ use of absentee ballot drop boxes; the prohibition on efforts by churches and civic groups to provide food or water to persons waiting in long lines to vote; and the prohibition on counting out-of-precinct provisional ballots cast before 5 p.m. on Election Day. The complaint asks the court to prohibit Georgia from enforcing these requirements.

Deputy Attorney General Lisa O. Monaco also issued a memo to United States Attorneys and FBI Field Offices today on investigating and prosecuting threats to election officials. To assist with this important effort the department will also establish an intra-Departmental task force to address the rising threats.

Today’s announcements follow Attorney General Garland’s recent commitment to expand the Justice Department’s efforts to safeguard voting rights.

More information about the Voting Rights Act and other federal voting laws is available on the Department of Justice’s website at www.justice.gov/crt/about/vot.  Complaints about discriminatory voting practices may be reported to the Voting Section of the Justice Department’s Civil Rights Division at 1-800-253-3931.

ATLANTA – Mezemr Abebe Belayneh has been arraigned on criminal charges related to his alleged lies to obtain U.S. citizenship.  The defendant allegedly concealed his involvement in the late 1970s Red Terror period in Ethiopia, where he served as a civilian interrogator at a makeshift prison.

“The laws of the United States are designed to provide refuge for the victims of human rights violation and to exclude those who commit them,” said Acting U.S. Attorney Kurt R. Erskine. “The defendant’s alleged lies through his immigration and naturalization process subverted this system.  We commend our law enforcement partners at the Department of Homeland Security and the dedicated team at the Department of Justice who work tirelessly to assure that individuals such as the defendant do not have a safe haven in our communities.”

“Human rights violators have no home in the United States,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “No matter how much time has passed, the Department of Justice will find and prosecute individuals who committed atrocities in their home countries and covered them up to gain entry to the United States.”

“Abebe’s lies and horrible past deeds have thankfully come back to haunt him. Now he will be held accountable,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Thanks to some great work from the agents and officers involved in this case as well as our law enforcement partners, justice will be served.”

According to Acting U.S. Attorney Erskine, the indictment, and other information presented in court: Mezemr Abebe Belayneh served as a civilian interrogator at a makeshift prison in Dilla, Ethiopia, during a period in the late 1970s known as the Red Terror. At the prison, Abebe ordered and participated in the severe physical abuse and interrogation of prisoners held on the basis of their political beliefs.

The indictment alleges that Abebe unlawfully procured U.S. citizenship, to which he was not entitled, by concealing his involvement in the Red Terror when he falsely claimed that he had not persecuted anyone because of their political opinions and had never committed a crime for which he had not been arrested.

Mezemr Abebe Belayneh, 65, of Snellville, Georgia, was indicted by a federal grand jury on May 26, 2021 and is charged with two counts of unlawful procurement of naturalization.  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.  A conviction would also result in automatic revocation of Abebe’s U.S. citizenship. 

This case is being investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and coordination in the case was provided by the Human Rights Violators and War Crimes Center (HRVWCC). Established in 2009, the HRVWCC furthers the government’s efforts to identify, locate, and prosecute human rights abusers in the United States, including those who are known or suspected to have participated in persecution, war crimes, genocide, torture, extrajudicial killings, female genital mutilation, and the use or recruitment of child soldiers.

Assistant U.S. Attorney Jessica Morris of the Northern District of Georgia, and Trial Attorneys Jamie Perry and Patrick Jasperse of the Justice Department’s Human Rights and Special Prosecutions Section (HRSP) are prosecuting the case, with assistance from HRSP Senior Historian Dr. Christopher Hayden.

Members of the public who have information about former human rights violators in the United States are urged to contact U.S. law enforcement through the HSI tip line at 1-866-DHS-2-ICE (1-866-347-2423) or its online tip form at www.ice.gov/tips.

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 - Acting U.S. Attorney Kurt R. Erskine joins the entire Department of Justice to observe the 16th Annual World Elder Abuse Awareness Day. The Department echoes voices around the world condemning elder abuse, neglect and exploitation.

"One of the Department of Justice’s top priorities is investigating and prosecuting elder abuse, as well as helping to educate the public on these issues.” said Acting U.S. Attorney Kurt R. Erskine. “Financial exploitation is the most common form of elder abuse and is estimated to cost older adults up to $36 billion annually.”

Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. Elder abuse — an intentional or negligent act that causes harm or a serious risk of harm to an older adult — is a serious crime that affects at least 10 percent of older Americans every year. The Department of Justice is steadfastly committed to combatting all forms of elder abuse and financial exploitation through enhancement actions; training and resources; research; victim services; and public awareness.    

Acting U.S. Attorney Erskine is joining forces with the U.S. Postal Service, the Prosecuting Attorneys’ Council of Georgia, and the American Bankers Association today to discuss financial fraud scams targeting the elderly and how we can protect ourselves and our loved ones from falling victim. The virtual townhall will be held from 3:00 – 4:00 p.m.  Access information is available at https://www.justice.gov/usao-ndga/WEAAD.

As the world takes this day to honor our seniors, the Department of Justice remains committed — through its Department-wide Elder Justice Initiative — to preventing and prosecuting elder abuse.

Regarding prevention, our team routinely engages in community outreach to educate the public on current fraud scams, including by speaking at senior citizen centers, on the radio, and on television. In addition, our office regularly collaborates with our state and local law enforcement partners in the fight against elder abuse.

Our office also is one of seven around the country participating in the Transnational Elder Fraud Strike Force, which focuses on investigating and prosecuting individuals and entities associated with foreign-based fraud schemes affecting American seniors.  For example, this past year, our office prosecuted the following:

• On April 29, 2021, in United States v. Mehulkumar Manubhai Patel and Chaitali Dave, the defendants were sentenced for laundering over $500,000 on behalf of India-based phone scammers. The India-based callers posed as federal agents so as to mislead victims into believing that their Social Security numbers were involved in crimes. The callers threatened to arrest the victim if they did not send money. The callers directed victims to mail cash to aliases used by other members of the fraud network, including Patel and Dave.

• On March 15, 2021, in United States v. Louis Beria, the defendant was sentenced to prison for defrauding a company and its elderly owner. The victim was an elderly, German investor who hired Beria to manage an apartment complex that the victim owned in Atlanta. Beria himself owned a separate apartment complex in Atlanta. Beria hired a company to do construction work on the complex that he owned but used the victim’s money to pay for it and lied to the victim about what he did. In total, Beria stole $1,621,979 from the elderly man.

• On February 3, 2021, in United States v. Karla Suzanne Spiker, the defendant was sentenced for her role in laundering money for an international telephone scam. Spiker worked with scammers in India, who sent out robocalls claiming to have an urgent message for the victim. When the victim — mostly elderly or otherwise vulnerable — returned the call, the scammers threatened or cajoled the victims into sending money. Specifically, the scammers told the victims that their Social Security number was used in a crime and that the victim would be arrested unless they paid money, or the scammers offered the victim a reduced mortgage if the victim first paid a fee. Once the victim agreed to make the payments, the scammers directed them to wire or send money to individuals in the United States — including Spiker — who worked for the India-based callers.

• On November 17, 2020, in United States v. Guarav Gupta and E Sampark, the defendants were charged in a first-of-its-kind indictment. Gupta directed and operated E Sampark, a Voice Over IP (VoIP) company that pushed out tens of millions of scam calls from criminal India-based call centers to victims in the United States. Gupta and his company thus provided the technological infrastructure for the India-based scammers to get their fraud calls into the United States, and financially profited from doing so. The callers defrauded the victims by, for example, claiming to be government agents and stating that the victim owed money and would be arrested if they did not pay (either by wiring money or buying gift cards), and by claiming to be from a bank and that the victim was eligible for fictious loans, thus convincing them to provide their bank account information.

On the civil side, this office obtained an injunction under 18 U.S.C. § 1345, shuttering foreign scammers’ access to a server farm in Florida. The first-ever Section 1345 injunction in this District shut down the robocall scammers’ VoIP technology, halting their ability to forward fraudulent calls to U.S. residents. Additionally, this office continues to investigate nursing homes and skilled nursing facilities as part of the Department of Justice Nursing Home Initiative for potential violations of the False Claims Act.

For more information on enforcement actions, training and resources, research, and victim services, please visit www.justice.gov/elderjustice.

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 Singla has been arraigned on charges arising out of a cyberattack conducted on Gwinnett Medical Center in 2018. Singla was indicted by a federal grand jury on June 8, 2021.

“Cyberattacks that target important infrastructure, like healthcare, pose a serious threat to public health and safety,” said Acting U.S. Attorney Kurt R. Erskine. “In this case, Singla allegedly compromised Gwinnett Medical Center’s operations in part for his own personal gain.”

“Criminal disruptions of hospital computer networks can have tragic consequences,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “The department is committed to holding accountable those who endanger the lives of patients by damaging computers that are essential in the operation of our healthcare system.”

“This cyberattack on a hospital not only could have had disastrous consequences, but patient’s personal information was also compromised,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI and our law enforcement partners are determined to hold accountable, those who allegedly put peoples health and safety at risk while driven by greed.”

According to Acting U.S. Attorney Erskine, the indictment, and other information presented in court: Vikas Singla, the Chief Operating Officer of a metro-Atlanta network security company that served the healthcare industry, allegedly conducted a cyberattack on Gwinnett Medical Center that involved:

• Disrupting phone service,
• Obtaining information from a digitizing device, and
• Disrupting network printer service.

The indictment further alleges that the cyberattack was conducted, in part, for financial gain. 

Vikas Singla, 45, of Marietta, Georgia, made his initial appearance before U.S. Magistrate Judge Linda T. Walker.  Singla was charged with 17 counts of intentional damage to a protected computer and one count of obtaining information from a protected computer. 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.

Assistant U.S. Attorney Samir Kaushal and Trial Attorney Brian Mund of the U.S. Department of Justice, Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case.

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

A Georgia man was arraigned today on charges arising out of a cyberattack conducted on Gwinnett Medical Center in 2018.

According to the indictment, Vikas Singla, 45, of Marietta, the chief operating officer of a metro-Atlanta network security company that served the health care industry, allegedly conducted a cyberattack on Gwinnett Medical Center that involved (i) disrupting phone service, (ii) obtaining information from a digitizing device, and (iii) disrupting network printer service. The indictment further alleges that the cyberattack was conducted, in part, for financial gain.

“Criminal disruptions of hospital computer networks can have tragic consequences,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “The department is committed to holding accountable those who endanger the lives of patients by damaging computers that are essential in the operation of our health care system.”

“Cyberattacks that target important infrastructure, like health care, pose a serious threat to public health and safety,” said Acting U.S. Attorney Kurt R. Erskine for the Northern District of Georgia. “In this case, Singla allegedly compromised Gwinnett Medical Center’s operations in part for his own personal gain.”

“This cyberattack on a hospital not only could have had disastrous consequences, but patients' personal information was also compromised,” said Special Agent in Charge Chris Hacker of the FBI’s Atlanta Field Office. “The FBI and our law enforcement partners are determined to hold accountable, those who allegedly put people’s health and safety at risk while driven by greed.”

Singla was indicted by a federal grand jury Tuesday and made his initial court appearance today before U.S. Magistrate Judge Linda T. Walker of the U.S. District Court for the Northern District of Georgia. The defendant is charged with 17 counts of intentional damage to a protected computer, each of which carries a maximum penalty of 10 years’ imprisonment, and one count of obtaining information by computer from a protected computer, which carries a maximum penalty of five years’ imprisonment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI is investigating this case.

Trial Attorney Brian Mund of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Samir Kaushal for the Northern District of Georgia and 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 - Anthony Dwayne King has been sentenced for laundering over $247,000, generated from business email compromise (BEC) schemes committed against Minnesota and Oregon homebuyers, a Delaware law firm, and a New Jersey company.

“King and his conspirators opened bank accounts, using fictitious identities and sham companies, for the purpose of laundering funds stolen from victims across the country through business email compromise schemes,” said Acting U.S. Attorney Kurt R. Erskine.  “Now, he is headed to federal prison and must pay full restitution to the victims.  Our office will continue to work with our federal, state, and local law enforcement partners to bring those who facilitate these cyber-fraud crimes to justice.”

“These cyber scams can be devastating to businesses and individuals who fall prey to them,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “It is a big reason why the Georgia Cyber Fraud Task Force was formed; to educate businesses and the community on how to avoid them. Arrests and convictions, like this one, will make it less lucrative and less appealing for those who contemplate committing these crimes.”

According to Acting U.S. Attorney Erskine, the charges and other information presented in court:  From October 2 through 12, 2018, King opened accounts at three banks in the Atlanta area, each time using a false identity and sham company name.   Shortly thereafter, on October 17, 2018, a homebuyer, located in Oregon, received a phone call from an impersonator posing as her realtor. The impersonator asked the victim homebuyer for an amount that she was able to wire that day to facilitate the closing of a home. The impersonator provided the victim with wiring instructions.  Following the instructions, the victim wired $45,000 to one of King’s Atlanta bank accounts.

On November 1, 2018, another homebuyer, located in Minneapolis, Minnesota, received an email from an impersonator posing as his realtor.  The impersonator similarly provided this victim with wiring instructions to facilitate the closing of the property.  The same day, the victim followed the impersonator’s instructions and wired $83,460.87 to an Atlanta bank account controlled by King.

On November 16, 2018, an impersonator provided a Delaware law firm with wiring instructions to send payoff funds to a mortgager.  Following the impersonator’s instructions, the law firm wired $68,403.16 to another Atlanta bank account controlled by King.  The next day, King made an in-person cash withdrawal of $3,800 from the account.

On February 27, 2019, a New Jersey company received an email from an impersonator posing as its landlord, instructing the company to wire $51,040.99 to the landlord for rent.  The company followed the impersonator’s instructions and wired $51,040.99 to an Atlanta-based account.  The next day, King deposited a check from this account, in the amount of $9,572, into his personal credit union account.

Anthony Dwayne King, 39, of Atlanta, Georgia, has been sentenced to two years, six months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $124,190.63.  King was convicted of money laundering conspiracy on December 16, 2020, after he pleaded guilty.

This case was investigated by the Federal Bureau of Investigation.

Assistant U.S. Attorney Michael Herskowitz, Chief of the Cyber and Intellectual Property Crimes Section, prosecuted the case.

By making a coordinated and concerted effort to focus on suspects moving fraud proceeds in the metro-Atlanta area, the Cyber Fraud Task Force, comprised of federal, state, and local law enforcement partners, seeks to disrupt the financial structure that makes BEC fraud schemes so lucrative for criminals.  Additionally, the task force aims to partner with community leaders and organizers to educate the public about avoiding these scams. 

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

ATLANTA - Paul Kwak and Michelle Kwak have been indicted on charges arising out of a scheme to defraud the U.S. Small Business Administration by filing fraudulent applications in the Economic Impact Disaster Loan (“EIDL”) Program. Congress created EIDL as part of the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act to help businesses weather the economic impact of the coronavirus pandemic. 

“Fraudulent applications divert the limited pool of funds Congress allocated for pandemic relief from legitimate businesses in need of assistance,” said Acting U.S. Attorney Kurt R. Erskine.  “By defrauding the Small Business Administration, the defendants harmed hardworking business owners whom the CARES Act was intended to help.”

“This alleged fraud is especially concerning because it takes advantage of a federal program set up to assist legitimate small businesses who need assistance to survive during a pandemic,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI is especially vigilant of such abuse and are making it a priority to make sure government assistance goes only to those who deserve it.”

“Lying to gain access to economic stimulus funds will be met with justice,” SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite. “SBA OIG will relentlessly pursue evidence of fraud against SBA’s programs aimed at assisting the nation’s small businesses struggling with the pandemic challenges. I want to thank the U.S. Attorney’s Office for its leadership and dedication to pursuing justice.”

According to Acting U.S. Attorney Erskine, the indictment, and other information presented in court: Paul Kwak and Michelle Kwak conspired to submit fraudulent EIDL applications in the names of shell companies that had no employees and conducted no business activities, to the tune of millions of dollars. An EIDL application must provide, among other information, the amount of revenue the business generated in the 12 months prior to the application and the number of employees. The applicant must certify, under penalty of perjury, that the information is correct and that he or she is legally eligible to apply for an EIDL. The Kwaks are allegedly connected to over 70 fraudulent EIDL applications, of which about half were successful, resulting in over $4 million in fraudulent loans.

Further, Paul Kwak has posted related videos on his YouTube channel. In a May 2020 video titled “EIDL, disaster assistance you don’t have to pay back” in Korean, Kwak explained that applicants can receive tens of thousands of dollars in assistance without collateral or a co-signor, using only the applicant’s electronic signature. One of his clients, according to Kwak, had recently received $150,000 in EIDL proceeds.

Paul Kwak, 63, and Michelle Kwak, 60, both of Braselton, Georgia, were indicted by a federal grand jury on May 18, 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.

Assistant U.S. Attorney Michael S. Qin 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.