Northern District of Georgia

GAINESVILLE, Ga. - Terence Dewayne Dixon has pleaded guilty to conspiracy to advertise child pornography. Dixon ran a Kik chat group that he named “House of 1000 Littles.” In 2018, the chat group involved more than 20 members from around the world who talked about and traded child pornography on a daily basis before the group was shut down in October 2018.

“Dixon and his chat group traded these disgusting files without regard for the lives they impacted,” said U.S. Attorney Byung J. “BJay” Pak.  “Individuals who share images of the sexual abuse of children feed the horrific exploitation of children, creating ongoing trauma to these vulnerable young victims and their families each time their image is distributed.”

“It is detestable that this predator delighted in seeing images of children being victimized, but to make matters worse, he organized an online haven for others to discuss and traffic in this filth,” said acting Special Agent in Charge Robert Hammer, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI Atlanta and its state and local partners will continue to identify and arrest these predators that are victimizing and stealing the innocence of our youth.”

“For this defendant to take the images of innocent children and pass them around in order to exploit them and use them to arouse in a sexual nature is absolutely despicable. The GBI is committed to working with our partners to stop this criminal behavior and protect our young ones,” said Vic Reynolds, Director, Georgia Bureau of Investigation.

According to U.S. Attorney Pak, the charges and other information presented in court: As early as November 2017, Dixon created a chat group on the social media app, Kik, and named it “House of 1000 Littles.” Members of Dixon’s group discussed how they were sexually aroused by children and sent one another links to child pornography files on a daily basis until October 2018. Investigators identified most of the other members of the chat group, living all across the United States, including in Georgia, Michigan, Ohio, Illinois, New York, Louisiana, Tennessee, and California. On one day, in or about January 2018, Dixon shared 21 links. On another occasion, in February 2018, he bragged that his shared link contained 5,000 videos of child pornography.

Sentencing for Terence Dewayne Dixon, also known as “Devilman Crybaby”, 37, of Houston, Texas, has not been scheduled yet.

This case is being investigated by the Department of Homeland Security, Homeland Security Investigations, and the Georgia Bureau of Investigation.

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

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

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

ATLANTA – William Dorsey, Jr., has been arraigned for embezzling over $200,000 from his father’s beneficiary account funded by the U.S. Department of Veterans Affairs (VA.)

“We must be diligent in protecting our elderly citizens, especially our veterans,” said U.S. Attorney Byung J. “BJay” Pak. “We are focused on preventing and punishing the exploitation and abuse of our most vulnerable citizens.”

“Fiduciaries assume a solemn duty to care for veterans who served their country through their military service and now are unable to care for themselves.  The VA Office of Inspector General is dedicated to working with our law enforcement partners to ensure that any fiduciary who embezzles VA funds intended to provide necessary support to our nation’s disabled veterans is held responsible,” said David Spilker, Special Agent in Charge, VA Office of Inspector General.

According to U.S. Attorney Pak, the charges, and other information presented in court: On May 10, 2010, William Dorsey, Jr., signed a fiduciary agreement agreeing to manage the benefit payments provided by the VA to his father, William Dorsey Sr., a 67-year-old disabled Vietnam veteran diagnosed with Alzheimer’s Disease and dementia. According to medical records from the secure medical center where he resides, William Dorsey, Sr., is wheel-chair bound, cannot communicate, and requires total assistance with his daily activities.

As part of the fiduciary agreement, Dorsey, Jr., agreed to spend the VA benefit funds only for his father’s daily needs, to never comingle funds, to never withdraw cash from the account, and to keep accurate records and receipts. However, by the time he was removed as fiduciary seven years later in May 2017, banking records indicate all of these conditions had been violated, including the direct transfer of money from his father’s account to his own personal account. According to a financial analysis conducted by the VA, over $200,000 remains unaccounted for.

During this same time period, nursing staff reported that Dorsey, Sr., only needed approximately $50-$100 to cover expenses each month, and that William Dorsey, Jr., commonly provided items of inferior quality, such as used oversized clothing and half empty bottles of shampoo. According to one social worker supervisor, the attending nurses felt compelled on occasion to buy “basic necessities” for Dorsey, Sr., out of their own pocket.

William Dorsey, Jr., 42, of Atlanta, Georgia, was arraigned before U.S. Magistrate Judge Alan J. Baverman.  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 the U.S. Department of Veterans Affairs, Office of the Inspector General, Criminal Investigations Division.

Assistant U.S. Attorney Scott McAfee 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 - Carla B. Gaines, an attorney formerly licensed in Georgia, has been sentenced to federal prison for stealing client money and lying about the theft.

“Gaines stole over $300,000 in client money and then repeatedly lied about it, including twice under oath,” said U.S. Attorney Byung J. “BJay” Pak.  “We hope that this prison sentence brings a measure of justice to the defendant’s victims, who were abused and had their trust violated.”

“Gaines compounded her deceit by lying under oath and is another example of the FBI's commitment to holding accountable anyone who violates their sworn oath to uphold the Constitution of the United States,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Her actions not only violated her clients’ trust, but also insulted every lawyer who honors and respects the oath they took.”

According to U.S. Attorney Pak, the charges, and other information presented in court:  Carla B. Gaines was an attorney, licensed in Georgia, until she was disbarred on November 18, 2019.  From August 2014 through March 2016, she stole $337,400 that she had received from Clayton County, Georgia, government, to hold in escrow for payment to a Georgia business, Kelete, Inc., which owned a gas station and convenience store in College Park, Ga.  After the theft, Gaines lied to Clayton County and Kelete to lull them into believing that she still had the money and payment was on the way.

In 2014, Clayton County entered into an agreement with Kelete for Kelete to sell a right of way or easement through Kelete’s property to the County, for $712,400.  Gaines was retained to serve as the escrow agent for this real estate transaction.  Clayton County transferred $712,400 to Gaines for her to hold in escrow and complete the transaction.

In November 2015, Clayton County and Kelete closed the real estate deal.  Gaines paid $375,000 to Kelete and its bank at the time of closing.  Under the settlement agreement, Gaines was required to hold the remaining $337,400 in escrow until Kelete removed certain trade fixtures and improvements on the property.  In March 2016, Kelete completed the removal and requested the remaining payment of $337,400.  But Gaines never paid, despite repeated demands.  Instead of holding the $337,400 in escrow as required, Gaines had diverted the funds to pay for personal and law firm expenses.

Beginning in March 2016, when payment was demanded, Gaines repeatedly made false representations to Clayton County and Kelete about whether she had the money and whether payment was on the way.  For example, Gaines falsely claimed that the wire was “pending,” that the wire was “stuck,” that she had a check ready for Kelete, that she was “awaiting a call from the bank,” that “the bank was holding the wire,” that she had “straightened out the issue,” and that the “wire should be processed Monday.”  These representations were false.  No wires were stuck, pending, held, or on their way; and no check was ready.  Gaines had far less than $337,400 in her bank accounts at the time she made these misrepresentations. 

Kelete sued Gaines to recover the $337,400 it was owed.  As part of that civil proceeding, Gaines lied in two depositions, in March 2017 and June 2018.  Gaines testified that she had paid a portion of Kelete’s funds to another client, a pastor, in error.  Gaines also testified that she had called the pastor and informed him of the mistake, and that he had promised to pay the money back to Gaines.  Those representations were false.

Gaines, 61, of Mableton, Georgia, was sentenced to two years in prison to be followed by three years of supervised release, and ordered to pay $330,900 in restitution.  She was convicted after pleading guilty to theft from a local government that receives federal funding.

This case was investigated by the Federal Bureau of Investigation.

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

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

ATLANTA, Ga. – Michael Terrell has pleaded guilty to forcibly assaulting a federal mail carrier, and brandishing a firearm in furtherance of that crime of violence. 

“Terrell’s conduct is especially egregious as he showed no regard for the life of the mail carrier who was simply doing his job,” said U.S. Attorney Byung J. “BJay” Pak.  “This kind of senseless attack jeopardizes the safety of both postal employees and the general public.”

“The safety and security of Postal Service employees is core to the mission of the Postal Inspection Service,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division.  “We will continue to work with our law enforcement partners to help protect our communities from the significant threats posed by criminals.”

“Crime, and the people who commit them, are destroying our communities,” said Arthur Peralta, ATF Special Agent in Charge.  “Mr. Terrell’s actions show his complete disregard for his community and the safety of those who live there.”

“This assault on a representative the United States Postal Service (USPS) is disturbing and unacceptable. Criminals who would seek to harm public servants and people who seek to use the USPS as a means to traffic drugs must be held accountable to the fullest extent of the law,” said Atlanta Interim Police Chief Rodney Bryant.

According to U.S. Attorney Pak, the charges, and other information presented in court: On March 2, 2019, the DeKalb County Police Department and U.S. Postal Inspectors investigated the armed assault of a mail carrier at a restaurant in Tucker, Georgia. The mail carrier had just delivered a parcel to the cashier at the restaurant when Terrell grabbed the parcel and followed the mail carrier to his postal vehicle. 

Terrell then attempted to block the mail carrier’s access to the vehicle, and forced his way inside the vehicle, and took the keys. Terrell began rummaging through the vehicle looking for the missing contents of the parcel, later determined to have been a large quantity of marijuana. Terrell then pulled a firearm on the mail carrier before fleeing the scene. 

At the time of the assault, Michael Terrell, 25, of Decatur, Georgia, was under indictment in Fulton County, Georgia, for possession with intent to distribute marijuana and possession of a firearm in furtherance of a felony on December 7, 2018. 

Assistant U.S. Attorney Laurel R. Boatright prosecuted the case.

The U.S. Postal Inspection Service, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the DeKalb County Police Department, the City of Atlanta Police Department, and the Georgia State Patrol are investigating this case.

This case is bought as a part of the Project Safe Neighborhoods (PSN) initiative.  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 - With the extended tax deadline of July 15 for individual taxpayers quickly approaching, the U.S. Attorney’s Office urges caution.  It is important to be aware of tax scams and to be compliant in filing and paying federal taxes timely. Tax cheats are becoming more sophisticated in their schemes and are finding new ways to cheat the system as well as gaining access to your personal and tax information.

“Criminals continue to victimize taxpayers with sophisticated tax fraud schemes,” said U.S. Attorney Byung J. “BJay” Pak.  “Be honest, truthful, and timely in your tax filings, and beware of others who look to take advantage of you and the tax system.”

“Those taxpayers who file accurate, honest and timely returns can be assured that the government will hold accountable those who don't. As we approach the end of the tax filing season, those who might consider preparing false tax returns should be aware of the extremely negative consequences as evidenced today,” said James E. Dorsey, Special Agent in Charge of the Atlanta Field Office.  “The convictions and sentencings outlined below emphasize that the Internal Revenue Service and U.S. Attorney’s office will continue their aggressive pursuit of those who would attempt to defraud America's tax system.” 

The U.S. Attorney’s Office for the Northern District of Georgia, along with agents of IRS-Criminal Investigation and other law enforcement partners, actively investigates and prosecutes tax fraud and combats criminals willing to steal identities and commit tax fraud on the unsuspecting public. Over the past year, multiple tax investigations were charged and resolved. The following are highlights of some of those cases:

• Larry Scott. Scott was sentenced to two years in prison for failing to disclose to the City of Atlanta that while he served as its Director of Contract Compliance, he also served as the business manager for a consulting firm seeking contracts in the Atlanta-metropolitan area.  Scott also failed to report on his taxes the majority of the income earned from the consulting firm.
   
• Thomas Holmes. Former tax preparation business owner Thomas Holmes pled guilty and was sentenced to three years, one month imprisonment for preparing and filing hundreds of fraudulent federal tax returns between 2011 and 2019.  In total, Holmes defrauded the federal government out of more than $2.6 million.  When preparing returns for clients, Holmes listed false Schedule C business losses and false Schedule A itemized deductions, causing taxpayers to claim millions of dollars in refunds that they were not entitled to.  When the IRS issued those refunds, Holmes frequently kept a portion of the fraudulent refunds for himself and paid the balance to his clients.  During the investigation, the IRS revoked Holmes’ e-filing privileges, but Holmes continued to file fraudulent returns through the mail. 
   
• Allan and Stacy Spagnardi. Both Spagnardis were sentenced to four years, three months in prison after using their chiropractic clinic to commit healthcare fraud and for defrauding the Internal Revenue Service.  Despite earning well over $1 million in personal income in 2014 and 2015, the Spagnardis failed to file federal income tax returns or pay federal income taxes for those tax years and instead took steps to hide their true income from IRS.  After the Spagnardis were indicted, they continued to take steps to hide their income from the IRS, including by filing a false federal income tax return in early 2018.
   
• Vladimir Pierre a/k/a Jimmy Valentine.  Pierre pleaded guilty to theft of government funds and aggravated identity theft. He admitted that between approximately January 2015 and April 2018, he filed over 150 fraudulent returns, a significant number of which involved the use of stolen identities, seeking more than $1 million in refunds. Pierre also admitted that as a result of his scheme he caused more than $340,000 in losses to the federal government. Pierre was sentenced four years, nine months in prison.
   
• Angela McBride.  McBride pled guilty to filing a fraudulent, retaliatory lien against former IRS Commissioner John Koskinen.  She was sentenced to one year in prison, with six months to be served in home confinement.  After McBride filed a frivolous income tax return for 2013, the IRS notified McBride that she would be subject to a $5,000 penalty unless she filed a corrected tax return.  Instead of filing a corrected return, McBride filed a lien with the DeKalb County clerk of court purporting to assign the $5,000 penalty issued against her to then-IRS Commissioner John Koskinen.
   
• Xiao-Jiang Li.  On May 8, 2020, Li pleaded guilty to filing a false tax return, for failing to report foreign income earned in China as a Thousand Talents Program participant and researcher. From 2012 to 2018, Li worked at Chinese universities conducting research, earning at least $500,000 in foreign income that he never reported on his federal income tax returns. Li was sentenced to one year of probation and ordered to pay restitution in the amount of $35,089. He was also ordered to file lawful income tax returns for the years 2012 through 2018 within the first two months of his probation and fully cooperate with the Examination Division, Internal Revenue Service, in making a complete and accurate determination of all taxes, penalties, and interest that he owes.
   
• Don Terry and Jeffrey Smith. Terry and Smith pleaded guilty to Conspiracy to File False Claims against the United States.  Terry and Smith were charged for their role in a tax fraud scheme in which numerous fraudulent and false individual and corporate income tax returns were submitted to IRS falsely claiming refunds. The refund checks were deposited into a bank account controlled by one of the co-conspirators for disbursement among the participants.  Terry and Smith both entered a guilty plea to the conspiracy charge on January 27, 2020. 
   
• Barbara Moore. Moore pleaded guilty on June 3, 2020 to a one count Indictment that charged her with Filing a False Claim Against the United States.  Moore, who was a tax preparer at the time, submitted a fraudulent corporate income tax return that falsely listed a tax credit used to support the false claim for a tax refund of $104,046.
   
• Timothy Cobb. Cobb pled guilty to fraud and filing a false tax return.  Cobb stole money from investors and then failed to report the stolen income on his federal income tax returns.
   
• Jo Ann Macrina.  Former City of Atlanta Commissioner of the Department of Watershed Management Macrina has been charged with conspiratorial bribery, bribery, and tax evasion in connection with money and other items of value that she accepted from City of Atlanta and DeKalb County contractor Lohrasb “Jeff” Jafari.  It is alleged that between June 2016 and September 2016, Jafari and/or PRAD Group paid Macrina $30,000 in four separate payments. She did not report any of these funds on her 2016 income tax return.
   
• Jim C. Beck.  On August 14, 2019, suspended Georgia Insurance Commissioner Beck was charged in a superseding indictment with four counts of aiding in the preparation and filing of false federal income tax returns for the years of 2015 thorough 2018.  According to the indictment, Beck’s tax returns for those years were fraudulent because they substantially overstated business expenses and substantially understated business profits associated with two of Beck’s businesses, Creative Consultants and GA Christian Coalition.
   
• Todd and Julie Chrisley.  Reality television stars Todd and Julie Chrisley, along with their accountant, Peter Tarantino, were charged for conspiring to defraud the IRS.  The Chrisleys are alleged to have taken steps to avoid paying taxes on the millions of dollars they earned while appearing on the television show "Chrisley Knows Best."  They were indicted by a federal grand jury on August 13, 2019.
   
• Luscious Mack. On November 12, 2019, a federal grand jury indicted Lucious Mack, charging him with 17 counts of filing false claims against the United States and four counts of theft of government money.  The false claims charges stem from Mack allegedly filing fraudulent 1040 and 1040X Individual Income Tax Returns and fraudulent 1120 and 1120X Corporate Income Tax Returns.  All the tax returns fraudulently claimed tax refunds to which Mack was not entitled.  In all, Mack falsely claimed refunds totaling $860,483.
   
• Alfonzo Stevens. In May 2019, Stevens was indicted on one count of obstructing or impeding the IRS in connection with the collection of his outstanding tax liabilities. The indictment alleges that for more than half-a-decade, Stevens has been impeding the IRS’s collection through various methods.
   
• Bryan McElroy.  McElroy was indicted on charges of attempting to file fraudulent, retaliatory liens against federal government officials.

 

• Leta Simmons.  On July 13, 2020, Leta Simmons of Fairburn, Georgia, was charged with preparing fraudulent federal income tax returns. Simmons conducted a tax return preparation business through which she assisted clients with preparing and filing their returns. On behalf of her clients but without their knowledge or consent, Simmons filed multiple tax returns that unlawfully claimed false business losses and false itemized deductions, resulting in greater tax refunds. Many of Simmons’s clients did not even own or operate businesses. The IRS-CI investigation revealed that Simmons had filed multiple fraudulent returns for the tax years 2013-2017, resulting in a loss to the IRS in excess of $350,000.

 
Members of the public are reminded that the indictments 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. 
 
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 - Gerald D. Harris, a former supervisor in the DeKalb County Tax Commissioner’s Office, has pleaded guilty to accepting bribe payments from customers to unlawfully register vehicles and then trying to blackmail a bribe payer by threatening to inform on her to the FBI.

“By repeatedly accepting bribe payments, Harris peddled his honor for money and in doing so sold out the citizens of DeKalb County – sometimes for as little as $100 per car,” said U.S. Attorney Byung J. “BJay” Pak.  “By then attempting to blackmail one of bribe payers, Harris showed his seemingly limitless greed.”

“Harris’s blatant disregard for the law and abuse of his position help to erode the public's trust in government,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “We continually work hard with our partners in law enforcement to regain that trust by seeking justice for those who choose their own financial interest over the taxpayers they serve.”

“I applaud the swift effort of the U.S. Attorney's Office, the FBI and other law enforcement agencies in bringing this case to a quick resolve. The DeKalb County Tax Commissioner's Office remains committed to safeguarding the trust of DeKalb's taxpayers and weeding out individuals who act unlawfully in any way,” said DeKalb County Tax Commissioner Irvin J. Johnson.

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

From July 2017 to November 2019, Harris served as the Supervisor of Tax Tag Clerks for the DeKalb County Tax Commissioner’s Office. In that position, Harris oversaw the Tax Commissioner - North Office’s clerks who processed motor vehicle registrations and renewals for customers.

From approximately mid-2018 to November 2019, Harris accepted bribe payments from customers to unlawfully register vehicles or renew vehicle registrations. For example, Harris accepted bribe payments:

• To register vehicles to individuals who did not have Georgia driver’s licenses or identification cards as required, typically in exchange for $200 per vehicle;
   
• To register vehicles that did not have the required accompanying documentation (such as: titles or Forms MV-1 title/tag application), typically in exchange for $500 to $1,000 per vehicle; and
   
• To renew vehicles that had not passed emissions tests by falsely entering that the vehicles had emissions exemptions, typically in exchange for $100 per vehicle.

In total, Harris is alleged to have accept at least $30,000 in bribe payments.

In addition to accepting bribe payments, Harris also attempted to blackmail one of the individuals who had been paying him bribe money. On November 18, 2019, DeKalb County Tax Commissioner’s Office fired Harris for accepting bribe payments (as fully detailed above). On the same date, Harris admitted to the FBI that he had accepted thousands in bribe payments in exchange for illegally registering/renewing vehicles for several people, including a person identified as Individual-1.

On December 12, 2019, Harris met with Individual-1 at an Atlanta, Georgia, gas station.  During the meeting, Individual-1 (who did not know that Harris had been fired) gave Harris registration documentation so that Harris could register four vehicles. Indvidual-1 gave Harris checks and cash to cover the costs of the required fees and taxes for each vehicle. Given that Harris no longer worked for the DeKalb County Tax Commissioner’s Office, Harris obviously could not register the four vehicles for Individual-1.  Nevertheless, Harris accepted and kept the money from Individual-1.

Then on December 17, 2019, Individual-1 sent a series of text messages to Harris requesting that Harris return the registration documentation and money. On December 17 and 18, 2019, Harris sent a series of text messages to Individual-1 where Harris stated that: (a) he was under investigation by the FBI, (b) the FBI has a video of Harris and Individual-1 meeting, (c)  “[a]ll of us can be in trouble,” (d) Harris needed to know “how much” money will he be paid not to give information to the FBI, and (e) Harris is  “not going to prison empty handed. It’s that simple.”

Based on the conduct set forth above, on February 28, 2020, the U.S. Attorney charged Gerald D. Harris, 51, of Fulton County, Georgia, in a criminal information with one count each of federal program bribery and blackmail.  Harris pleaded guilty to both counts.

The FBI, DeKalb County District Attorney’s Office, Georgia Department of Revenue, and DeKalb County Tax Commissioner’s Office are investigating this case.

Assistant U.S. Attorney Jeffrey W. Davis, Chief of the Public Integrity and Special Matters Section, and Assistant U.S. Attorney Nicholas Hartigan are prosecuting the case.

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

ATLANTA – Federal agents have arrested husband and wife Mehulkumar Manubhai Patel and Chitali Dave for laundering over $400,000 on behalf of India-based phone scammers. 

“Criminal India-based call centers sought to prey on vulnerable members of our community and steal from them by misleading them over the phone,” said U.S. Attorney Byung J. “BJay” Pak.  “Those, like Patel and Dave, who allegedly launder money in the United States on behalf of foreign-based fraudsters, are the linchpins of those schemes.”

“I commend the Department of Justice and Social Security’s Office of the Inspector General for their aggressive work to fight fraudsters who target Americans through various phone scams,” said Andrew Saul, Commissioner of Social Security. “People who receive suspicious calls should just hang up, and never give out their personal information. They should go online to oig.ssa.gov to report these Social Security scams.”

“This arraignment is a bold statement that we will aggressively pursue overseas phone scammers—and their facilitators in this country—who are stealing Americans’ hard-earned money,” said Inspector General Ennis. “I want to thank the U.S. Attorney’s Office in the Northern District of Georgia for bringing these charges, and our law enforcement partners for their efforts in investigating these scams and bringing the perpetrators to justice.”

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

As part of their Social Security scam, India-based callers pose as federal agents in order to mislead victims into believing their Social Security numbers were involved in crimes.  Callers threatened arrest and the loss of the victims’ assets if the victims 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.

As part of the tech support scam, callers allegedly induced victims to send money in exchange for supposed technical support for their computers.  The callers then provided nothing in return.  At times, callers misled the victims into providing remote access to their computers and the callers would access the victims’ bank accounts.  The callers routinely misled the victims by making it appear as though the caller added money to the victims’ bank accounts.  The callers then instructed the victims to mail cash to aliases used by other members of the fraud network, including Patel and Dave.

Based on misrepresentations made during the calls, the victims, including a number of Georgia residents, mailed money to a network of individuals that allegedly laundered funds on behalf of the overseas fraud network.  From on or about May 2019, to on or about January 2020, Patel and Dave allegedly laundered over $400,000 sent by at least twenty-four victims of the scams.

On June 9, 2020, Mehulkumar Manubhai Patel, 36, and Chitali Dave, 36, both of Lexington, South Carolina, were charged by a federal grand jury with money laundering conspiracy and money laundering.  Patel was arraigned on June 19, 2020 before U.S. Magistrate Judge Christopher C. Bly.  Defendant Dave was arraigned on July 14, 2020 before U.S. Magistrate Judge Linda T. Walker. 

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.

Separately, on July 9, 2020, the U.S. District Court Judge William M. Ray, II sentenced defendant Joish Patel to over two years in prison by for his role in a criminal India-based phone scam.  In 2017, Patel picked up over $140,000 dollars in victim funds using fake IDs. Some victims in that case sent money to aliases used by Joish Patel in response to an IRS scam where callers claimed they owed taxes or would be arrested.  Other victims were tricked into believing that they needed to send money in order to qualify for loans.

The Social Security Administration - Office of the Inspector General is investigating the Mehulkumar Manubhai Patel and Chitali Dave case, with the assistance of the U.S. Secret Service, Aiken Department of Public Safety (South Carolina), Naperville Police Department (Illinois), Lexington County Sheriff’s Department (South Carolina), Rocky River Police Department (Ohio), and Henrico County Police Division (Virginia).  The U.S. Treasury Inspector General for Tax Administration (TIGTA) investigated the Joish Patel case.

Northern District of Georgia Elder Justice Coordinator and Assistant U.S. Attorney Jolee Porter and Special Assistant U.S. Attorney Diane Schulman are prosecuting the case.

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

The public should exercise caution with any caller who claims to be a government employee. Government agencies will never threaten you with immediate arrest or other legal action if you do not send cash, retail gift cards, wire transfers, or internet currency. They will also never demand secrecy from you in resolving a debt or any other problem. If you need to send a payment to Social Security, SSA will send a letter with payment options and appeal rights. If you suspect you have received a Social Security scam call, report it at https://oig.ssa.gov.

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 - Universal Health Services, Inc., UHS of Delaware, Inc.(together, UHS), and Turning Point Care Center, LLC (Turning Point), a UHS facility located in Moultrie, Georgia, have agreed to pay a combined total of $122 million to resolve alleged violations of the False Claims Act for billing for medically unnecessary inpatient behavioral health services, failing to provide adequate and appropriate services, and paying illegal inducements to federal healthcare beneficiaries, the Department of Justice announced today.  UHS owns and provides management and administrative services to nearly 200 acute care inpatient psychiatric hospitals and residential psychiatric and behavioral treatment facilities nationwide.  UHS is headquartered in King of Prussia, Pennsylvania. 

“Illegal inducements should never play a role in a patient’s decision regarding treatment, especially when a patient is seeking care for addiction and other behavioral health needs,” said Byung J. “BJay” Pak, U.S. Attorney for the Northern District of Georgia.  “Our office remains committed to pursuing unlawful arrangements that undermine the integrity of federal healthcare programs.”

“The Department of Justice is committed to protecting patients and taxpayers by ensuring that the treatment provided to federal healthcare beneficiaries is reasonable, necessary, and free from illegal inducements,” said Acting Assistant Attorney General Ethan P. Davis for the Department of Justice’s Civil Division.  “The Department will continue to be especially vigilant when vulnerable patient populations are involved, like those served by behavioral healthcare providers.”

“Providing top quality health care to service members and their beneficiaries is the primary mission of the Defense Health Agency. It's unfortunate a company tried to take advantage of a system that ensures health care for those men and women who are on the front lines every day protecting our nation," said Lt. Gen. Ronald Place, director, DHA. “We commend the Department of Justice and its partners for bringing justice to those responsible for knowingly defrauding TRICARE beneficiaries.”

“VA OIG continues to be vigilant in holding those accountable who defraud VA programs and ensure that tax payer dollars are appropriately utilized for the care of our nation’s veterans and their dependents.  Also, we thank our law enforcement partners and the United States Attorney’s Office for their support,” said Acting Special Agent in Charge Jeffrey Stachowiak, Department of Veterans Affairs, Office of Inspector General.   

“The OPM OIG does not tolerate predatory behavior that risks the health and safety of vulnerable patients,” said Thomas W. South, Deputy Inspector General for Investigations for the Office of Personnel Management. “We are grateful for the fine work of our investigators and Department of Justice partners. Today’s settlement demonstrates OPM-OIG’s unwavering commitment to investigating conduct that affects vulnerable FEHBP enrollees.”    

“Protecting the health and safety of Medicare and Medicaid patients is one of our primary concerns.  Our Corporate Integrity Agreement provides future protection for patients and federal health care programs through controls and monitoring designed to ensure that UHS’s behavioral health facilities provide quality services and medically necessary care to patients,” said Gregory E. Demske, Chief Counsel to the Inspector General for the United States Department of Health and Human Services.  “This case demonstrates that the government will aggressively pursue allegations of substandard inpatient care.”

As part of a comprehensive civil settlement, UHS will pay the United States and participating states a total of $117 million to resolve allegations that its hospitals and facilities knowingly submitted false claims for payment to the Medicare, Medicaid, TRICARE, Department of Veterans Affairs, and Federal Employee Health Benefit programs for inpatient behavioral health services that were not reasonable or medically necessary and/or failed to provide adequate and appropriate services for adults and children admitted to UHS facilities across the country.

In a separate civil settlement, Turning Point will pay the United States and the State of Georgia $5 million to resolve allegations that it provided free or discounted transportation services to induce Medicare and Medicaid beneficiaries to seek treatment at Turning Point’s inpatient detoxification and rehabilitation program or intensive outpatient program.      

The government alleged that, between January 2006, and December 2018, UHS’s facilities admitted federal healthcare beneficiaries who were not eligible for inpatient or residential treatment because their conditions did not require that level of care, while also failing to properly discharge appropriately admitted beneficiaries when they no longer required inpatient care.  The government further alleged that UHS’s facilities billed for services not rendered, billed for improper and excessive lengths of stay, failed to provide adequate staffing, training, and/or supervision of staff, and improperly used physical and chemical restraints and seclusion.  In addition, UHS’s facilities allegedly failed to develop and/or update individual assessments and treatment plans for patients, failed to provide adequate discharge planning, and failed to provide required individual and group therapy services in accordance with federal and state regulations. 

Of the $117 million to be paid by UHS to resolve these claims, the federal government will receive a total of $88,124,761.27, and a total of $28,875,238.73 will be returned to individual states, which jointly fund state Medicaid programs.     

With respect to Turning Point, the government alleged that, from January 2007 until May 1, 2019, the facility provided free or discounted transportation services to Medicare and Medicaid beneficiaries to induce them to seek detoxification and rehabilitation treatment at Turning Point’s inpatient or intensive outpatient programs.

The government’s settlement with UHS resolves 18 cases pending in the Eastern District of Pennsylvania, Western District of Michigan, the Eastern District of Michigan, and Northern District of Georgia under the qui tam, or whistleblower, provision of the False Claims Act, which permit private parties to file suit for false claims on behalf of the United States and to share in any recovery.  The whistleblower share of the federal portion of the settlement will be $15,862,457.03.  The settlement with Turning Point resolves an additional qui tam lawsuit filed in the Northern District of Georgia.  The whistleblower in that suit will receive $861,853.64, from the federal share of the Turning Point settlement.

Contemporaneous with the civil settlements announced today, UHS, on behalf of its inpatient acute and residential behavioral health facilities, has entered into a Corporate Integrity Agreement with the U.S. Department of Health and Human Services, Office of Inspector General (OIG), which will remain in effect for five years.  UHS must retain an independent monitor, selected by the OIG, which will assess UHS’s Behavioral Health Division’s patient care protections and report to the OIG.  In addition, an independent review organization will perform annual reviews of UHS’s inpatient behavioral health claims to federal health care programs.

The settlement with UHS was the result of a collaborative effort among numerous federal and state agencies.  The Commercial Litigation Branch of the Department of Justice’s Civil Division and the U.S. Attorney’s Office for the Eastern District of Pennsylvania handled the cases, with substantial assistance from the U.S. Attorneys’ Offices for the Middle District of Florida, the Northern District of Georgia, the Eastern District of Michigan, the Western District of Michigan, the Middle District of Georgia, the Northern District of Illinois, the Middle District of North Carolina, the Western District of North Carolina, the District of Oregon, the Middle District of Pennsylvania, the Southern District of Texas, the District of Utah, the Eastern District of Virginia, the Western District of Virginia, the Northern District of Oklahoma, and the District of Wyoming, as well as the National Association of Medicaid Fraud Control Units (NAMFCU).  The Civil Division and NAMFCU coordinated the nationwide investigation of UHS in partnership with the Office of Inspector General for the Department of Health and Human Services; the Department of Defense Criminal Investigative Service; the Department of Veterans Affairs, Office of Inspector General; the Office of Personnel Management, Office of Inspector General; and the Federal Bureau of Investigation.  The Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the Northern District of Georgia handled the Turning Point matter with assistance from the Office of Attorney General of Georgia and the Office of Inspector General for the U.S. Department of Health and Human Services.   

The civil settlement with UHS resolved the following captioned cases: United States ex rel. Gardner v. Universal Health Services, Inc., 2:17-cv-03332-AB (E.D. Pa.); United States ex rel. Naylor v. Universal Health Services, Inc., 2:14-cv-06198-AB (E.D. Pa.); United States ex rel. Jain v. Universal Health Services, Inc., et al., No. 2:13-cv-06499-AB (E.D. Pa.); United States ex rel. Chisholm v. Universal Health Services, Inc., et al., 2:17-cv-01892-AB (E.D. Pa.); United States ex rel. Doe, et al. v. Universal Health Services, Inc., et al., No. 2:14-cv-00921 (E.D. Pa.); United States ex rel. Pate v. Behavioral Hospital of Bellaire, et al., 2:15-cv-00554-AB (E.D. Pa.); United States ex rel. Brinson, et al. v. Universal Health Services, Inc., et al., 2:14-cv-07275-AB (E.D. Pa.); United States ex rel. Mitchell v. Turning Point Care Center, Inc., et al., 2:15-cv-00259-AB (E.D. Pa.); United States ex rel. Peterson v. Universal Health Services, Inc., et al., 2:17-cv-01897-AB (E.D. Pa.); United States ex rel. Conaway, et al. v. Universal Health Services, Inc., et al., 2:17-cv-02233-AB (E.D. Pa.); United States ex rel. Eborall v. Universal Health Services, Inc., et al., 2:17-cv-03249-AB (E.D. Pa.); United States ex rel. Sachs, et al. v. Universal Health Services, Inc., et al., 2:17-cv-03604-AB (E.D. Pa.); United States ex rel. Klotz v. Universal Health Services, Inc., et al., 2:17-cv-05163-AB (E.D. Pa.); United States ex rel. Brockman, et al. v. Universal Health Services, Inc., et al., 2:17-cv-05350-AB (E.D. Pa.); United States ex rel. Glass v. Hughes Center, LLC., et al., 2:18-04018-AB (E.D. Pa.); United States ex rel. Parent-Leonard v. Forest View Psychiatric Hospital, et al., No. 1:18-cv-1426 (W.D. Mich.); United States ex rel. Russell, et al. v. Universal Healthcare Services, Inc., et al., No. 1:19-CV-0764 (N.D. Ga.); United States ex rel. McLauchlin, et al. v. Havenwyck Holdings, Inc., et al., No. 2:19-cv-10832 (E.D. Mich.).   

Assistant U.S. Attorney Mellori Lumpkin-Dawson represented the United States in the case captioned United States ex rel. Russell, et al. v. Universal Healthcare Services, Inc., et al., No. 1:19-CV-0764 (N.D. Ga.) .

The settlement with Turning Point resolved the case captioned United States ex rel. Heatley v Turning Point Care Center LLC, et al., 1:17-CV-3869-MLBAT (N.D. Ga.).  

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

This case was handled by Assistant U.S. Attorney Austin Hall 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 - Christopher Dobbins has pleaded guilty to the charge of reckless damage to a protected computer for deleting and modifying his former employer’s electronic shipping and other business records. Dobbins’s former employer is a medical packaging company that ships, among other things, personal protective equipment (“PPE”) to healthcare providers. Dobbins’s conduct delayed the shipment of PPE during the COVID-19 pandemic.

“Preventing scarce medical supplies from being delivered to healthcare workers and hospitals that need them is illegal,” said U.S. Attorney Byung J. “BJay” Pak. “Thanks to the cooperation of the victim company and the hard work of our law enforcement partners, we were able to bring this investigation to a swift conclusion and obtain a conviction for this egregious act.”

“Thanks to the quick reaction of the medical packaging company in contacting the FBI, we were able to react quickly and arrest this disgruntled employee,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “During this world wide epidemic it is imperative that we make sure crucial medical supplies are not disrupted or diverted from the front lines of medical care.”

According to U.S. Attorney Pak, the charges and other information presented in court:  In early March 2020, Dobbins was terminated from his employment at a medical device packaging company.  While employed at the company, Dobbins had administrator access to the computer systems containing the company’s shipping information. When his employment was terminated, he also lost his access to the company’s computer systems.

On March 26, Dobbins received his final paycheck from the company. Three days later, on March 29, 2020, he used a fake user account that he had previously created while still employed at the company to log into the company’s computer systems.  He then conducted a computer intrusion that disrupted and delayed the medical device packaging company’s shipments of PPEs.

While logged in through the fake user account, Dobbins created a second fake user account and then used that second account to edit approximately 115,581 records and delete approximately 2,371 records. After taking these actions, Dobbins deactivated both fake user accounts and logged out of the system. The edits and deletions to the company’s records disrupted the company’s shipping processes, causing delays in the delivery of much-needed PPEs to healthcare providers.

Sentencing for Christopher Dobbins, 40, of Duluth, Georgia, is scheduled for October 16, 2020, at 10:00 a.m., before Chief U.S. District Judge Thomas W. Thrash. 

The Federal Bureau of Investigation is investigating this case.

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

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.

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. - John Michael “Mike” Gowder, James Heaton, and George David Gowder have been sentenced to federal prison.  Both Mike Gowder and Heaton were convicted on October 24, 2019, after a two-week jury trial on 102 counts related to illegally prescribing and obtaining more than 15,000 doses of prescription pain medications outside the usual course of professional practice and for no legitimate medical purpose.  In addition, Heaton was convicted of 27 counts of issuing illegitimate prescriptions to two female patients.  David Gowder pleaded guilty on March 15, 2019, to illegally dispensing opiates outside the scope of professional practice and without a legitimate medical purpose.

“The abuse of prescription drugs and its related criminal activity is a danger in many of our communities - one we have made a central focus of our office,” said U.S. Attorney Byung J. “BJay” Pak.  “Jurors in this case sent a clear message that the illicit prescribing and obtaining of controlled substances will not be tolerated.”

Robert J. Murphy, the Special Agent in Charge of the DEA’s Atlanta Field Division stated, “In this case, the dispensing of addictive prescription pain medication under the guise of a licensed medical professional’s care is not about the good of the community or an individual’s specific health needs; it is about the greed of those involved in illegal prescribing practices.” DEA and its law enforcement partners will continue to expend its time, energy and resources in an effort to stem the tide against the growing opioid epidemic. The spirited level of law enforcement cooperation and the prosecution by the U.S. Attorney’s Office made this investigation a success.”  

“I simply want to personally thank our federal partners, the DEA and their outstanding agent. Also, Assistant U.S. Attorneys William McKinnon and Laurel Boatright, and especially U.S. Attorney for the Northern District of Georgia BJay Pak, who without his diligent interest in these cases prosecution and conviction would not have been possible. During my 37 years in law enforcement at the state and local level as Sheriff I have never seen or even heard of a federal prosecutor that was so intent on aiding local law enforcement as U.S. Attorney Pak. He helps make the system work as it should with cooperation, assistance, and a pro-found interest in our needs,” said Mack Mason, Sheriff, Union County.

“The Cherokee County Sheriff’s Office (NC) would like to thank all the partners involved with the investigation and prosecution of this case.  It is great to know that a good working relationship among law enforcement agencies keeps drug users and dealers from hiding across state lines to conduct their illegal activities,” said Derrick Palmer, Sheriff, Cherokee County, North Carolina.

“An excellent job was done by all, from the local level, to the state level and at the federal level.  The public places a great deal of trust in medical professionals and in order to combat the opioid crisis drug dealers in white coats must be weeded out as well,” said Dennis M. Troughton Sr., Director, Georgia Drugs and Narcotics Agency.

According to U.S. Attorney Pak, the charges and other information presented in court: From 2011 to 2015, Mike Gowder served as the Chief Operating Officer and later Chief Executive Officer of Union General Hospital (“the Hospital”) in Blairsville, Georgia. Dr. James Heaton operated a family practice clinic in Blairsville and worked as the Medical Director of the Nursing Home of the Hospital.  Dr. David Gowder was the Emergency Room Director of the hospital and a member of the Hospital’s Board of Directors (until April 2015).

On April 11, 2015, Dr. David Gowder was arrested by the Union County Sheriff’s Office after presenting to two local pharmacies three forged oxycodone prescriptions purportedly issued by a hospital colleague.  He admitted that he had become addicted to oxycodone.  Investigators later learned that, since mid-2011, David Gowder had been routinely writing or “calling in” to local pharmacies high quantity, high-dose opiate prescriptions in the names of family members and fictitious patients (including alleged missionaries).  Investigators also learned that many of the prescriptions were filled by hospital employees at the instruction of David Gowder. He also stole pills from some of his patients at the hospital and elsewhere.

During this same time, investigators also learned that Dr. James Heaton had illegally prescribed increasing quantities of hydrocodone and oxycodone to Mike Gowder between 2012 and 2015, knowing that those prescriptions were issued outside the usual course of professional practice and that the pills obtained with the prescriptions had no legitimate medical purpose. Heaton violated numerous standards of medical practice by prescribing the pills to Mike Gowder, without adequately documenting the medical need for the prescriptions in his patient file and without monitoring patient abuse of the pills he obtained.  During the three-and-half years in which Heaton prescribed more than 15,000 hydrocodone and oxycodone pills to Mike Gowder, Heaton recorded only six of the prescriptions in his patient file for Mike Gowder.

Starting in 2012, Mike Gowder obtained oxycodone by fraud, subterfuge, and deception by filling the illegal prescriptions from Heaton at different pharmacies in an effort to conceal the large numbers of pills that Heaton was prescribing to him.  In addition to filling the prescriptions at pharmacies in Georgia, Mike Gowder often travelled to North Carolina and Tennessee to fill multiple prescriptions a month at pharmacies in those states. On numerous occasions, Heaton wrote two prescriptions for oxycodone for Mike Gowder on the same day.  On other occasions, Mike Gowder traveled to North Carolina to fill one prescription, and then traveled to Tennessee to fill a second prescription, to hide the fact that Heaton had written multiple prescriptions to him on the same day. During this time, Mike Gowder recommended that the hospital purchase Heaton’s sleep study, increase Heaton’s compensation for various roles at the hospital, and that Heaton serve as a member of the Hospital Board of Directors.

Investigators also learned that Heaton issued prescriptions for hydrocodone, oxycodone, and methadone to two female patients outside the usual course of professional practice and without a legitimate medical purpose, including by ignoring obvious signs that the two women were abusing the medications and/or had become addicted. Oxycodone, hydrocodone, and methadone are powerful pain medications that are listed as controlled substances under federal law because each has a high potential for psychological and physical abuse and dependence. Oxycodone, which may be combined with acetaminophen, is sold generically under brand names including Percocet, Endocet, Oxycontin, and Roxicodone. Hydrocodone is sold generically or under brand names including Lortab, Vicodin, and Norco. Methadone is an opioid pain medication that is also used in opioid dependence therapy

The defendants in this case have been sentenced as follows:

• John Michael “Mike” Gowder, 62, of Nashville, Tennessee, has been sentenced to one year and one day in prison.
• Dr. James Heaton, 63, of Blairsville, Georgia, has been sentenced to six years in prison. 
• Dr. David Gowder, 63, of Blairsville, Georgia, was sentenced to one year, six months in prison on June 10, 2020, after pleading guilty to illegally dispensing opiates outside the scope of professional practice and without a legitimate medical purpose.

The Drug Enforcement Administration, the Union County (Georgia) Sheriff's Office, Cherokee County (North Carolina) Sheriff’s Office, Georgia Drugs and Narcotics Agency, and Zell Miller Mountain Parkway Drug Task Force are investigating this case.

Assistant U.S. Attorney Laurel R. Boatright, Deputy Chief of the Narcotics and Dangerous Drugs Section (PSN), and former Assistant U.S. Attorney William McKinnon prosecuted the case.

This case was brought as part of Operation SCOPE, Strategically Combatting Opioids through Prosecution and Enforcement.  SCOPE is our initiative combining our efforts (criminal, civil, and educational) with those of our law enforcement partners to create one unified front in the battle against the opioid/heroin epidemic.  One important aspect of Operation SCOPE is to prosecute those who are illegally prescribing, or distributing, painkillers.

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 - Piedmont Healthcare, Inc., an Atlanta-based hospital system, has agreed to pay $16 million to settle allegations that it violated the False Claims Act by billing Medicare and Medicaid for procedures at the more expensive inpatient level of care instead of the less costly outpatient or observation level of care. The settlement also resolves allegations that Piedmont paid a commercially unreasonable and above fair market value to acquire Atlanta Cardiology Group in 2007 in violation of the federal Anti-Kickback Statute.

“Billing the government for unnecessary inpatient services wastes precious government resources and taxpayer dollars,” said U.S. Attorney Byung J. “BJay” Pak. “All appropriate action will be taken to ensure that beneficiaries of federal health care programs received services untainted by overcharges and improper financial incentives.”

“Our watchdog agency will continue to aggressively investigate healthcare providers that attempt to boost their profits by billing Medicare and Medicaid for medically unnecessary services and engaging in kickback schemes,” said Special Agent in Charge Derrick L. Jackson, U.S. Department of Health and Human Services Office of Inspector General.  “We will not tolerate such greed-fueled schemes, which bilk taxpayer-funded health care programs and undermine the public’s trust in the healthcare industry.”

“Our office will continue to work with our federal partners to ensure that healthcare providers abide by rules that serve as important safeguards for public safety and public resources,” said Georgia Attorney General Chris Carr.

The settlement resolves two separate False Claims Act allegations. First, between 2009 and 2013, Piedmont’s case managers allegedly overturned the judgment of its treating physicians on numerous occasions and billed Medicare and Medicaid at the more expensive inpatient level of care even though the treating physicians recommended performing the procedures at the less expensive outpatient or observation level of care. Second, in 2007 Piedmont allegedly acquired the Atlanta Cardiology Group, a physician practice group, in violation of the federal Anti-Kickback Statute by paying a commercially unreasonable and above fair market value for a catheterization lab partly owned by the practice group.

This settlement resolves a lawsuit filed in the U.S. District Court for the Northern District of Georgia by a former Piedmont physician 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 $2,967,400.

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, with substantial assistance from the Department of Justice Civil Division, Commercial Litigation Branch (Frauds Section).

Assistant U.S. Attorney Armen Adzhemyan represented the United States in this matter and Assistant Attorney General James Mooney represented the State of Georgia.

The case is captioned United States and Georgia ex rel. Doe v. Piedmont Healthcare, Inc. et al., 1:16-CV-780. 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 - Maurice Fayne, who stars in Love & Hip Hop: Atlanta, has been indicted by a federal grand jury. Fayne is charged with bank fraud, making a false statement to a federally-insured financial institution, and money laundering, all in connection with a Paycheck Protection Program (PPP) loan. In addition, Fayne is charged with wire fraud in connection with a Ponzi scheme.

“The emergency lending provisions of the Paycheck Protection Program were intended to help small businesses survive the COVID-19 pandemic,” said U.S. Attorney Byung J. “BJay” Pak. “Fayne allegedly used PPP loan proceeds to live a luxurious lifestyle that included leasing a Rolls Royce and purchasing expensive jewelry, as well as making payments to individuals involved in a Ponzi scheme. We intend to investigate and charge anyone who inappropriately diverts these critical funds for personal gain.”

“Despite the difficult times the recent Coronavirus pandemic has caused, the FBI and our federal partners continue to be vigilant in making sure funds provided by programs like PPP are used as intended,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “We won't allow anyone's personal greed to misdirect federal emergency assistance to their own pockets, rather than go to the businesses who need it to stay afloat.”

“The Paycheck Protection Program is intended to keep the nation’s small businesses afloat during these unprecedented times,” said Inspector General Hannibal “Mike” Ware of the Small Business Association Office of Inspector General.  “It is unconscionable to fraudulently attempt to gain access to PPP funds at the expense of those who need it most.  Our office and its law enforcement partners will aggressively investigate false statements made in attempt to receive funds from SBA’s programs .  I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”

According to U.S. Attorney Pak, the indictment, and other information presented in court: From approximately August 2014 through approximately May 2020, Fayne posed as the owner of a profitable trucking business. In truth, Fayne’s trucking business never generated enough revenue to cover its expenses. Nevertheless, Fayne caused approximately 20 individuals to invest over $5 million in his trucking business. Fayne promised that he would use the investors’ money to purchase and operate trucks. Instead, Fayne used the investors’ money to pay his personal debts and expenses, and to fund an extravagant lifestyle for himself. During the wire fraud scheme, Fayne transferred more than $5 million to a casino to cover his personal gambling and entertainment expenses.

On April 15, 2020, Fayne signed and submitted to United Community Bank (UCB) a PPP loan application in the name of his trucking business, Flame Trucking, stating that the business had 107 employees and an average monthly payroll of $1,490,200. In seeking a loan in the amount of $3,725,500, Fayne certified that the 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.”

As soon as Fayne took control of the PPP loan proceeds, he began using 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 2019 Rolls-Royce;
• $230,000 to associates who helped him run a Ponzi scheme;
• $907,000 to help an associate start a new business.

Fayne allegedly structured those financial transactions to conceal and disguise the nature, location, source, ownership, and control of the proceeds, which raised red flags at UCB. When UCB asked Fayne to provide additional information about Flame Trucking’s finances, Fayne responded by sending UCB what he represented to be October, November, and December 2019 bank statements for Flame Trucking’s account at Arvest Bank. As Fayne knew, however, those bank statements were fraudulent, because Arvest Bank had shut down Flame Trucking’s account in September 2019.

• When Fayne was interviewed by federal agents, he claimed that he used all of the PPP loan proceeds to pay payroll and other business expenses incurred by Flame Trucking. Fayne expressly denied using any of the PPP loan proceeds for personal purposes.
  During the investigation, federal agents seized the following proceeds of Fayne’s bank fraud scheme:

• $617,000 seized from seven bank accounts;
• $136,000 used as a down payment on the 2019 Rolls-Royce;
• $79,482 in cash seized at Fayne’s residence;
• eight Kenworth T-680 trucks;
• six Great Dane refrigerated trailers;
• a $3,750 diamond ring;
• a $24,500 diamond bracelet; and
• a $52,000 Rolex watch.

Maurice Fayne, a/k/a Arkansas Mo, 37, of Dacula, Georgia, was indicted on June 24, 2020.  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.

The Federal Bureau of Investigation in conjunction with the Atlanta Complex Financial Crimes Task Force supported by the Gwinnett County Sheriff’s Office, and the Small Business Administration-Office of the Inspector General are investigating this case.

Assistant U.S. Attorneys Russell Phillips, Bernita Malloy, and Michael J. Brown are prosecuting the case.

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.

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

ATLANTA - The Department of Justice‘s Office of Community Oriented Policing Services (COPS Office) today announced nearly $42 million in funding to support state-level law enforcement agencies in combating the illegal manufacturing and distribution of methamphetamine, heroin, fentanyl, carfentanil and prescription opioids. The Georgia Bureau of Investigation will receive $2,474,918 in funding to support investigations into trafficking in heroin, fentanyl, carfentanil or the unlawful distribution of prescription opioids.

“The GBI is a great partner in our efforts to address the heroin and opioid problem in the Northern District through Operation SCOPE (Strategically Combatting Opioids through Prosecution and Enforcement),” said U.S. Attorney Byung J. “BJay” Pak.  “This grant award will give the State of Georgia much-needed resources to continue our efforts to prosecute drug dealers and doctors who are illegally prescribing and distributing opioids.” 

“The GBI is honored to receive these grant funds from the Justice Department to enhance our current drug strategy to combat illegal and harmful opioids. Having this additional support from our federal partners will help us in our effort to keep Georgia communities healthy and safe,” said Vic Reynolds, GBI Director.

“The scourge of opioid and methamphetamine use continues to take a devastating toll on our nation’s communities,” said COPS Office Director Phil Keith. “By providing these resources to law enforcement to help combat the further spread, the COPS Office is demonstrating our commitment to this Administration’s priority of reducing drug use and protecting our citizens from this public health and safety crisis.”

“The GBI is a steadfast law enforcement partner in combatting the scourge of drug trafficking in the Southern District,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “This funding is a welcome boost for our work to seek and destroy the poison piped into our communities.”

“Georgia will benefit greatly from this federal support backing our state’s fight against illegal drug trafficking,” said Charlie Peeler, the U.S. Attorney for the Middle District of Georgia. “The professionals at GBI are heroically engaged in combatting the manufacture and sale of deadly drugs in communities across the Middle District of Georgia. We are all grateful for their relentless effort in this battle.”

Drug overdose deaths and opioid-involved deaths continue to increase in the United States.  Deaths from drug overdose are up among both men and women, all races, and adults of nearly all ages, with more than three out of five drug overdose deaths involving an opioid. More than 130 people die every day in the United States after overdosing on opioids, while methamphetamine continues to be one of the most commonly misused stimulant drugs in the world and is the drug that most contributes to violent crime.

The COPS Office is awarding more than $29.7 million in grant funding to 14 state law enforcement agency task forces through the Anti-Heroin Task Force Program (AHTF), of which the GBI is a recipient. AHTF provides three years of funding directly to state-level law enforcement agencies with multijurisdictional reach and interdisciplinary team (e.g., task force) structures, in states with high per capita rates of primary treatment admissions for heroin, fentanyl, carfentanil and other opioids. This funding will support the location or investigation of illicit activities through statewide collaboration related to the distribution of heroin, fentanyl, carfentanil or the unlawful distribution of prescription opioids.

Through the COPS Anti-Methamphetamine Program (CAMP), the COPS Office is also awarding $12 million to 12 state law enforcement agencies.  These state agencies have demonstrated numerous seizures of precursor chemicals, finished methamphetamine, laboratories, and laboratory dump seizures. State agencies are being awarded three years of funding through CAMP to support the location or investigation of illicit activities related to the manufacture and distribution of methamphetamine, including precursor diversion, laboratories, or methamphetamine trafficking.

The AHTF and CAMP funding has a tremendous impact on state investigative and seizure work.  During the five month period between October 2019 and February 2020, current AHTF grantees reported the seizure of over $4 million in cash and 1,213 firearms.  Similarly, for CAMP, grantees reported seizures of more than $7 million in cash and 1,577 firearms.

The complete list of Anti-Heroin Task Force Program award recipients, including funding amounts, can be found here: https://cops.usdoj.gov/ahtf-award.

The complete list of COPS Anti-Methamphetamine Program award recipients, including funding amounts, can be found here: https://cops.usdoj.gov/camp-award.

The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1994, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of approximately 135,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about the COPS Office, please visit www.cops.usdoj.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 – Jesus Sanchez-Morales, the leader of an extensive drug conspiracy involving multiple state prisons in Georgia, has pleaded guilty, joining sixteen of his conspirators.  Sanchez-Morales, who was incarcerated in a Georgia prison, admitted to brokering innumerable drug transactions throughout the Atlanta area from his prison cell using contraband cell phones.  He was already serving a sentence for drug trafficking offenses at the time he committed this offense.

“An insidious network of drug trafficking prison inmates has been disrupted by the apprehension and conviction of Sanchez-Morales and his team,” said U.S. Attorney Byung J. “BJay” Pak.  “Inmates tempted to use a phone in state or federal prison now know that when they are caught using a cell phone from prison, they will face more time in prison.  And when those cell phones are used for the proliferation of lethal drugs in our community, the consequences will be severe.”

Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division commented, “DEA is fully committed to pursuing criminals who sell drugs, whether they’re selling them on the streets or inside a prison. This high-level drug trafficker was the “ring-leader” who orchestrated a number of drug transactions throughout metropolitan Atlanta while incarcerated. Consequently, his criminal acts landed him even more deserving time in prison. The spirited level of law enforcement cooperation and the subsequent prosecution by the U.S. Attorney’s Office made this investigation a success.”

According to U.S. Attorney Pak, the charges and other information presented in court: The case resulted from an extensive DEA investigation involving federal court-authorized wiretaps of multiple contraband prison cell phones.  During the course of the investigation, agents learned that a network of prison inmates was using contraband cell phones to broker drug transactions throughout the Atlanta area, including arranging to receive drug shipments from out of state and from Mexico.  These prison brokers relied on an organized cadre of lieutenants and footmen outside of prison to store, package and distribute multiple varieties of illegal drugs using drug stash houses.  Other members of the organization were responsible for laundering the drug proceeds, including sending multiple low-dollar money wires to Mexico using various money remitters. 

The drug trafficking and money laundering organization repeatedly threatened violence to uncooperative members.  At least 18 firearms were seized, including firearms containing notches, believed to represent instances where the firearm had been used to take a life.  At one point, agents learned of a plot to abduct and murder a member of the conspiracy and successfully averted the plan.

Throughout the conspiracy, Sanchez-Morales was frequently referred to as “Patron,” or boss.  Thirty-nine participants in total were indicted as part of this conspiracy and charged with a combination of drug, gun, and money laundering offenses.

During the course of the investigation, agents seized more than 175 kilograms of methamphetamine, 25 gallons of liquid methamphetamine, 12,000 fentanyl pills, as well as kilogram-quantities of fentanyl powder, heroin and marijuana.  Agents also dismantled two methamphetamine conversion laboratories and seized $343,000 in cash. 

In addition to Sanchez-Morales, the following sixteen defendants have been convicted to date before U.S. District Judge Leigh Martin May as part of this case:

• Enrique Rodriguez Govea, a/k/a Gordo, 24, of Atlanta, Georgia, has been sentenced to 10 years in prison, to be followed by five years of supervised release.

• Daniel Gonzalez, a/k/a Burro, 28, of Fairburn, Georgia, has been sentenced to five years and four months in prison, to be followed by five years of supervised release.
  Edgar Ochoa-Martinez, a/k/a Michoacano, 35, of Georgia, has been sentenced to 10 years in prison, to be followed by five years of supervised release.
• Rafael Alvarez, a/k/a Rafa, 64, of Montgomery, Alabama, has been sentenced to 13 years in prison, to be followed by five years of supervised release.
• Emmanuel DeSantos Nieto, a/k/a Duy, 26, of Union City, Georgia, has been sentenced to 12 years in prison, to be followed by five years of supervised release.

• Benjamin Villareal Perez, a/k/a Durango, 42, of Georgia, has been sentenced to 19 years and eight months in prison, to be followed by five years of supervised release.

• Sentencing for Cristian Hernandez-Lovo, a/k/a Zipote, 28, of Atlanta, Georgia, is set for July 7, 2020.

• August Mario Castillo, 52, of Fairburn, Georgia, has been sentenced to 15 years in prison, to be followed by five years of supervised release.

• Leonardo Rosas, 27, of Fairburn, Georgia, has been sentenced to six years in prison, to be followed by five years of supervised release.

• Shelly Class, 40, of Atlanta, Georgia, has been sentenced to 10 years in prison, to be followed by five years of supervised release.
• David Chavez-Ortiz, 49, of Montgomery, Alabama, has been sentenced to four years in prison, to be followed by five years of supervised release.
• Sentencing for Samantha Fagundes, 24, of Union City, Georgia, is set for June 29, 2020.
• Sentencing for Salvador Valencia-Zavala, 58, an inmate at Dooly State Prison in Unadilla, Georgia, has yet to be set.
• Sentencing for Aszavious Anderson, a/k/a Guapachoso, 43, of Atlanta, Georgia, is set for August 25, 2020.

• Sentencing for Erin Bella Cortez, 32, of Dallas, Georgia, is set for August 5, 2020.

• Sentencing for Allison Daniel, 43, of Covington, Georgia, is set for August 13, 2020.

 

Sixteen additional defendants have been arraigned and are awaiting trial:

• Juan Torres Chavez, 48, an inmate at Dooly State Prison in Unadilla, Georgia;
• Juan Ramirez, a/k/a Mene, 27, an inmate at Washington State Prison in Davisboro, Georgia;
• Martin Maldonado, 38, an inmate at Washington State Prison in Davisboro, Georgia;        
• Joseph Dominic Edwards, 43, of Batesburg, South Carolina;
• Jaime Chavez, a/k/a Nasty, 32, of College Park, Georgia;

• Jordan Bowers, 33, of Red Bank, Tennessee;

• Lilia Martinez Rodriguez, a/k/a Lilly, a/k/a Maria, 58, of Atlanta, Georgia;

• Jesus Molina-Ortiz, a/k/a Oso, 45, of Fairburn, Georgia;
  Jamar Tyrone Zanders, 31, of Columbus, Georgia;

• Jason Garcia-Lara, a/k/a Gordo, 24, of Atlanta, Georgia:
• Taurus Basil Stephens, 27, of Vidalia, Georgia;
• Aricus Cantrell Holloway, 36, of Columbus, Georgia;

• Antwonette Jarnez Thomas, 21, of Conyers, Georgia;

• Raheem Jamal Morris, a/k/a Black, 31, of Lithia Springs, Georgia;

• Marvin Gaye Banks, 48, of Cartersville, Georgia;

• Alejandro Vazquez-Lopez, a/k/a Micho, 24, of Mexico.

 
The following individuals have been charged as part of the drug conspiracy but has not yet been apprehended:

• Eusebio Panigua-Paz, a/k/a Margaro, 50, of Mexico.
• Five other defendants remain at large.

 
Members of the public are reminded that the indictments only contain charges.  The defendants who have not been convicted are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
 
The Drug Enforcement Administration is investigating these cases. The U.S. Marshals Service, Georgia State Patrol, Atlanta Police Department, Cobb County Sheriff’s Office, South Fulton Police Department, Georgia Department of Corrections, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and Federal Bureau of Investigation are providing valuable assistance during these investigations.
 
Assistant U.S. Attorneys Alison B. Prout, Erin H. Harris, and Scott McAfee are prosecuting the cases.
 
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 – Former City of Atlanta Commissioner of the Department of Watershed Management Jo Ann Macrina has been charged with conspiratorial bribery, bribery, and tax evasion in connection with money and other items of value that she accepted from City of Atlanta and DeKalb County contractor Lohrasb “Jeff” Jafari. In March 2019, Jafari was charged in a 51 count indictment with conspiratorial bribery, bribery, tampering with a witness, tax evasion, money laundering, and structuring. Jafari was separately charged with one additional count of bribery and tampering with a witness in connection with bribes he paid to Macrina.

“Macrina allegedly decided that accepting bribes from Jafari was more important than following the rules established for contracting by the City of Atlanta – and thereby betrayed the public’s trust,” said U.S. Attorney Byung J. “BJay” Pak. “In exchange for those bribe payments, Macrina manipulated the evaluation process to direct work to Jafari’s firm.”

“Circumventing the process to hire contractors for the city by accepting bribes to profit personally is the highest form of public corruption,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “It is extremely disturbing when the person alleged to have accepted bribes is the head of a department. Our public corruption squad is determined to hold those serving the public in positions of trust accountable.”

Macrina undermined the process of fair and open competition when she accepted bribes from a contractor in exchange for money and other things of value," said James Dorsey, Special Agent in Charge, IRS Criminal Investigation. "In addition, Macrina failed to report bribes and income on her income tax returns.  The IRS is committed to aggressively investigating those individuals who engage in corruption. These actions demonstrate our collective efforts to enforce the law and ensure public trust.”

According to U.S. Attorney Pak, the charges, and other information presented in court: From April 2011 through May 20, 2016, Macrina served as the Commissioner of the Department of Watershed Management for the City of Atlanta.  PRAD Group, Inc. (“PRAD Group”) was an architectural, design, and construction management and services firm with its headquarters and primary place of business in Atlanta, Georgia. Jafari was the Executive Vice President of PRAD Group at that time.  During Macrina’s tenure, the City of Atlanta awarded contracts worth millions of dollars to PRAD Group and joint venture projects of which PRAD Group was a partner.

From at least from 2014 through May 20, 2016, Macrina met with Jafari alone and with others, including Adam Smith, the former Chief Procurement Officer, to discuss City of Atlanta procurement projects, bids, and solicitations. Often at the time of these meetings, Jafari was allegedly actively seeking contracts, projects, and work with the City of Atlanta. In July 2014, the City of Atlanta issued a request for proposal for architectural, engineering, and design services contract FC-7383. Vendors subsequently submitted proposals to earn an opportunity to be one of the firms to service this contract. By late 2014, evaluators chosen from various City departments met on several occasions to score the proposals. JP2, a joint venture led by PRAD Group, scored at the bottom of the rankings. Macrina and others then decided to conduct interviews with the proponent firms and reevaluate the proposals in an effort to alter the final scores. To ensure that certain firms were ultimately selected, Macrina replaced two evaluators that previously represented the Department of Watershed Management with herself and another individual. In July 2015, JP2 was selected as one of six vendor firms for FC-7383. In January 2016, Macrina issued two notices to proceed to JP2 for work for the Department of Watershed Management. Task Order One was valued at over $9 million. Task Order Two was valued at over $2 million.

During this time, Macrina discussed potential employment with Jafari and allegedly accepted items of value from Jafari in exchange for or as a reward for providing Jafari with access to information and preferential treatment with respect to City of Atlanta projects.  In particular, Macrina allegedly accepted $10,000 in cash, jewelry, a room at a luxury hotel in Dubai, and landscaping work at her home from Jafari either directly or through an employee of PRAD. On May 20, 2016, Macrina’s employment ended with the City of Atlanta. Shortly thereafter, she began working for Jafari and PRAD Group. Between June 2016 and September 2016, Jafari and/or PRAD Group paid Macrina $30,000 in four separate payments. She did not report any of these funds on her 2016 income tax return.

Also beginning at least in 2014 to January 2017, Jafari paid thousands of dollars in bribe payments to Adam Smith, the then-Chief Procurement Officer of the City of Atlanta. Jafari and Smith met at Atlanta-area restaurants where they discussed City business, among other things, and Jafari would generally pay Smith $1,000 in cash in the restaurant bathroom. Jafari similarly paid bribes to a local official in DeKalb County in April and August of 2014. In exchange for Jafari’s payments to Smith, Smith met with Jafari regularly and provided Jafari with information and counsel regarding the City of Atlanta’s procurement processes, among other information. When PRAD Group or a joint venture in which PRAD Group was a partner became a successful proponent on a City of Atlanta contract or Request for Proposal, Smith approved and submitted the award of those projects. Smith also approved task and/or purchase orders for those projects.

In February 2017, Jafari became aware of the Federal investigation into his payments to Smith, at which time he confronted Smith in an effort to intimidate and persuade Smith to provide false information to federal law enforcement about the payments, instructing Smith to deny taking bribe money from Jafari. Similarly, following the execution of a federal search warrant at PRAD’s offices in 2017, Jafari instructed a PRAD employee to lie to the FBI about gifts that she purchased for Macrina on Jafari’s instructions while she and Macrina were traveling abroad in the spring of 2016.

Between 2014 through 2016, Jafari also willfully failed to pay income taxes to the IRS. During those years, Jafari withdrew large amounts of cash from corporate bank accounts and allegedly used corporate funds for personal expenses, among other things, to avoid the assessment of income tax. In 2014, Jafari owed at least $150,000; in 2015, at least $300,000; and in 2017, at least $700,000 to the IRS. Jafari is additionally charged with numerous counts of money laundering for engaging in financial transactions with funds earned from City of Atlanta work he obtained while he was paying bribes to Adam Smith and Jo Ann Macrina.

On February 26, 2019, a grand jury returned an indictment against Jafari, 69, of Alpharetta, Georgia, on 51 federal charges, including conspiratorial bribery, bribery, tampering with a witness, tax evasion, money laundering, and structuring. On June 16, 2020, a grand jury again indicted him on these 51 charges in addition to two new charges relating to payments to Macrina. On June 16, 2020, the grand jury also returned an indictment against Macrina, 63, of Daytona Beach, Florida, on one count each of conspiratorial bribery, bribery, and tax evasion.

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

The Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation are investigating these cases.

Assistant U.S. Attorneys Jill E. Steinberg, Deputy Chief of the Criminal Division, Jeffrey W. Davis, Chief of the Public Integrity Section, and Nathan P. Kitchens, Deputy Chief of the Cyber 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.

ROME, Ga. - Daniel Strickland has pleaded guilty to producing child pornography of two minors in his care. A federal grand jury had indicted Strickland in November 2019.

“Strickland produced child pornography of children under his supervision,” said U.S. Attorney Byung J. “BJay” Pak. “By bringing this perpetrator to justice, we hope this will be at least a small step toward the victims living a normal life.”

“Much of our success in bringing defendants like this to justice is because of our partnerships with local and state law enforcement agencies like the Murray County Sheriff Office,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. ‘We will never relax our combined resources when it comes to protecting a vulnerable and defenseless child.”

“It is of the utmost importance of the Murray County Sheriff’s Office to provide safety and security to each and every one of our citizens, especially our children,” said Murray County Sheriff Gary Langford.

According to U.S. Attorney Pak, the charges, and other information presented in court: The Murray County, Georgia, Sheriff's Office and the FBI learned in February 2019, that Strickland had allegedly abused a minor girl who was under his care. A subsequent investigation revealed that Strickland took sexually explicit photos of this minor girl, and another minor girl, that he previously babysat. In July 2019, Strickland pleaded guilty to two counts of child molestation arising from these incidents in Murray County Superior Court.

Daniel Strickland, 46, of Chatsworth, Georgia, pleaded guilty to two counts of producing child pornography before U.S. District Court Judge Steven D. Grimberg. Under the terms of Strickland’s plea agreement, the government and Strickland are recommending that the Court impose a sentence of between 20 and 25 years in prison. Sentencing is scheduled for September 16, 2020, at 10:00 a.m.

Anyone with information, or who may have been a victim in this case, please contact the Murray County Sheriff’s Office 706-695-4592 or the Federal Bureau of Investigation at 770-216-3000.

The Federal Bureau of Investigation and the Murray County Sheriff’s Office are investigating this case.

Assistant U.S. Attorneys Alex R. Sistla and Nicholas Hartigan are prosecuting the case.

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

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

NEWNAN, Ga. – Ricky Eugene Reid has been sentenced to 21 years in federal prison for the armed robbery of five businesses and the attempted armed robbery of a sixth business.

“Reid’s ten month crime spree terrorized the employees of the businesses he robbed,” said U.S. Attorney Byung J. “BJay” Pak.  “The collective efforts of our federal and local law enforcement partners secured his apprehension, culminating in his convictions and this lengthy prison sentence.”

“Mr. Reid’s sentence is appropriate but it will never erase the fear and anguish felt by his victims,” said Arthur Peralta, Special Agent in Charge of ATF in Atlanta.  “Mr. Reid had no compassion for the people he terrorized and threatened to shoot, as is the case in many robbery cases.  We must come together as a community to promote the idea that crime is not the answer.” 

“This is a prime example of how fluid communication and teamwork can result in success. Our community, our officers, and our investigators displayed outstanding courage and perseverance during critical times of the investigation. The formation of professional relationships between all agencies played a vital role in Reid’s arrest. I am proud of all the collaborative efforts and teamwork involved to make our community a safer place,” said Jay Parrish, Chief of Police, Gainesville Police Department.

“The Gwinnett County Police Department is committed to ensure violent crimes are fully investigated to ensure a successful prosecution. Gwinnett Police detectives worked tirelessly alongside several other jurisdictions to help bring this violent offender to justice.  The collaborative efforts in working with the United States Attorney’s Office, the ATF and other jurisdictions, ensures these violent offenders are taken off the streets so our neighborhoods and communities are safe,” said Maj. Chris Smith, Commander of the Criminal Investigations Section, Gwinnett County Police Department.

“Ricky Reid terrorized numerous victims in multiple jurisdictions across Northeast Georgia. His arrest and criminal convictions are the direct result of the strong relationships we strive to maintain with our community members and law enforcement partners, both locally and federally. This lengthy prison sentence sends a clear message that our community will not tolerate these types of heinous criminal acts,” said Lt. Todd Templeton, Criminal Investigation Division, Oakwood Police Department.

“The arrest, prosecution, and conviction of Reid is an excellent example of leveraging the resources of local and federal law enforcement to remove a truly dangerous individual from society for many years,” said Billy J. Grogan, Chief of Police, Dunwoody Police Department.

According to U.S. Attorney Pak, the charges, and other information presented in court: Between August 26, 2018, and June 7, 2019, Ricky Reid engaged in a crime spree during which he robbed four department stores, a pizza store, and attempted to rob a fifth department store.  While robbing the four department stores, Reid fired a gun multiple times through the front door window, shattering the glass (store employees were in the immediate direction and area of where Reid fired).  Reid pointed a gun at employees during each of the robberies and forced them to empty their cash registers.  During one robbery, he pursued a store manager at gunpoint who was running away with bank bags from the register and told her “stop” or “I’ll shoot.”

Reid was eventually captured on June 7, 2019, as he was preparing to rob a sixth department store in Buford, Georgia.  When law enforcement searched Reid’s vehicle, agents located a firearm inside the vehicle as well as ammunition and black clothing consistent with what Reid wore during his prior armed robberies.  Agents eventually learned that Reid was previously employed at one of the department stores.

Ricky Eugene Reid, 34, of Oakwood, Georgia, was sentenced on June 11, 2020, by U.S. District Judge Richard W. Story to 21 years in prison, to be followed by three years of supervised release, and ordered him to pay restitution in the amount of $16,342.42.  Reid was convicted of these charges on December 4, 2019, after he pled guilty to multiple counts of Hobbs Act robbery and brandishing a firearm during a crime of violence.

Former Assistant U.S. Attorney William McKinnon and Assistant U.S. Attorney Laurel R. Boatright prosecuted this case.

The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Gainesville Police Department, the Gwinnett County Police Department, the Oakwood Police Department, the Dunwoody Police Department and the Johns Creek Police Department investigated this case.

This case was brought as a part of the Project Safe Neighborhoods (PSN).  In keeping with the Attorney Generals 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.

GAINESVILLE, Ga. – Jesse James Smallwood, Delveccho Waller, Jr., Bruce Thompson, Judah Coleman Bailey, and Dashun Martin have been indicted by a federal grand jury for the offenses of conspiring to commit, and commission and attempted commission of, arson of a police car following a protest stemming from the death of George Floyd.

“While using the cover of peaceful protests in Gainesville, the defendants allegedly sought out and intentionally burned a police vehicle,” said U.S. Attorney Byung J. “BJay” Pak.  “Those seeking to perpetrate criminal acts of violence toward our law enforcement officers should expect to be prosecuted to the full extent of the law.”     

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

“We want our community to know we stand with them during their rights to peacefully protest. Sadly, agitators that do not necessarily share the same goals as our community took this opportunity to target one of our officers at his residence. We will not stand for this type of destruction and violence in our community,” said Jay Parrish, Chief of Police, Gainesville Police Department.

According to U.S. Attorney Pak, the federal charges, and other information: Early on the morning of June 2, 2020, a Gainesville Police Department patrol vehicle was set on fire in the parking lot of a local apartment complex. Officers responded immediately and extinguished a fire in the rear of the patrol vehicle. A witness reported seeing an older model vehicle with no lights parked near the entrance of the apartment building. The witness saw two subjects exit the vehicle and approach the patrol car, after which the witness heard a loud bang followed by a bright light.  The witness then saw smoke emanating from the rear of the patrol car.

Based on the information from the witness, investigators issued a radio lookout for the suspects’ vehicle. Shortly thereafter, police officers saw a vehicle matching the witness’s description parked at a nearby gas station and convenience store. The driver, Jesse James Smallwood, agreed to speak to one of the officers and gave permission for his car to be searched. During the search, officers recovered three spent explosives and a flare gun.  Smallwood and his passengers, Waller Jr., Thompson, Bailey, and Martin, were all arrested for the arson.

Jesse James Smallwood, 21, Delveccho Waller, Jr., 21, Dashun Martin, 23, Judah Coleman Bailey, 20, all of Gainesville, Georgia, and Bruce Anthony Thompson, 22, of Oakwood, Georgia, were indicted June 16, 2020.  Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.

The FBI-Gainesville, the Gainesville Police Department, and the Gainesville Fire Department are investigating this case.

Assistant U.S. Attorney Greg Radics 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 - Russell Richardson, former DeKalb Medical Center, Inc. (DeKalb Medical) Director of Security, has pleaded guilty to fraudulently using hospital funds to acquire multiple handguns that he then sold for his personal benefit and financial gain. 

“Richardson abused his position at the hospital, and manipulated the system for personal profit,” said U.S. Attorney Byung J. “BJay” Pak.  “His actions diverted hospital funds that could have been used to purchase critical medical supplies.”

"Richardson violated the trust placed in him as the Director of Security at DeKalb Medical Center,” said Arthur Peralta, Special Agent in Charge of ATF in Atlanta.  “Even worse, Mr. Richardson fraudulently obtained and sold guns without any concern as to who they were being sold to or where they would ultimately end up.”

According to U.S. Attorney Pak, the charges and other information presented in court: Richardson, who was then the Director of Security at DeKalb Medical Center, was authorized to submit purchase requests and to approve purchases made on behalf of the Security Department. Richardson abused his position when, beginning in March 2016, he submitted purchasing requests to the hospital for firearms he intended to sell for his personal benefit. Since Richardson also approved the requests, the hospital paid for the firearms that Richardson subsequently took and sold for profit. 

Then, starting in July 2017, Richardson used hospital letterhead to place orders directly with the firearms’ vendor. He concealed his gun purchases from the hospital by causing the vendor to send the invoices directly to him. Richardson then submitted false invoices to the hospital that listed the vendor’s name but falsely listed the items purchased. The hospital paid the invoices without knowing the funds were actually for the purchase of numerous firearms. 

After acquiring firearms purchased with hospital money, Richardson advertised that he had guns for sale at gun courses he taught in South Carolina and on his social media sites.  He eventually sold many of them for 100% profit. 

According to ATF records, and Richardson’s own admission, he acquired approximately 100 firearms since the inception of his fraud scheme.           

Russell Richardson, 44, of Columbia, South Carolina, was indicted by a grand jury on August 13, 2019, for mail fraud, dealing firearms without a license, and selling firearms to non-state residents. Richardson pleaded guilty one count each of mail fraud and unlawfully transferring firearms to non-state residents. His sentencing has not yet been scheduled.

The Bureau of Alcohol, Tobacco, Firearms and Explosives is investigating this case.

Assistant U.S. Attorney Tracia M. King is prosecuting the case.

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

ATLANTA - U.S. Attorney Byung J. “BJay” Pak joined Attorney General William P. Barr and the entire Department of Justice to observe the 15th Annual World Elder Abuse Awareness Day. The Department echoes voices around the world condemning elder abuse, neglect and exploitation.

“The investigation and prosecution of criminals who prey upon the elderly is a top priority of my office,” said U.S. Attorney Byung J. “BJay” Pak.  “This year, we have brought charges against numerous defendants who attempted to victimize seniors and we will continue to do so in the future.  Those individuals who prey on the elderly should know that it will be only a matter of time before we find and prosecute you.”

The COVID-19 pandemic has created unprecedented challenges for our country and the world, but among those most severely affected by the threat of the novel virus are our senior citizens. During this time when seniors are most vulnerable and isolated from their families and loved ones by social distancing and quarantine restrictions, bad actors have immediately exploited this international tragedy to prey on the elderly through a whole host of scam and fraud schemes. As the world takes this day to remember the elderly during these uncertain times, the Department of Justice remains relentlessly committed, through its department-wide Elder Justice Initiative, to prevent and prosecute fraud on America’s seniors.

The Department will aggressively prosecute fraudsters exploiting the Covid-19 pandemic and targeting seniors offering them fake testing kits and fake help obtaining stimulus and Paycheck Protection Program Funds.  On this day dedicated to recognizing our seniors, the Department of Justice sends a strong message that we continue the fight to keep seniors safe a top priority.

Earlier this year Attorney General Barr declared “Prevention and Disruption of Transnational Elder Fraud” to be an Agency Priority Goal, making it one of the Department’s four top priorities.  The Northern District of Georgia has brought federal charges in numerous cases of elder fraud. 

Major strides have already been made to that end:

• National Elder Fraud Hotline: 833-FRAUD-11
  Earlier this year Attorney General Barr launched a National Elder Fraud Hotline. Staffed by experienced case managers who provide personalized support to callers, the hotline serves to assist elders and caretakers who believe they have been a victim of fraud by reporting and providing appropriate services.
  Transnational Elder Fraud Strike Force: Established in June 2019 to combat foreign elder fraud schemes, the Strike Force is composed of the Department’s Consumer Protection Branch and six U.S. Attorneys’ Offices, including the Northern District of Georgia, along with FBI special agents, Postal Inspectors, and numerous other law enforcement personnel.  Since its inception, prosecutors in Strike Force districts brought cases against more than 140 sweep defendants.
• Annual Elder Justice Sweep: In March of this year, the Attorney General announced the largest coordinated sweep of elder fraud cases in department history. The Department, together with every U.S. Attorney’s office, charged more than 400 defendants, causing over $1 billion in loss through fraud schemes that largely affected seniors.
• Holding foreign-based perpetrators accountable: Transnational criminal organizations are targeting our elder population in schemes including mass mailing fraud, grandparent scams, romance scams, lottery and sweepstakes scams, IRS and Social Security Administration imposter scams, and technical-support scams.
• Money Mule Initiative: Since October 2018, the Department and its law enforcement partners began a concentrated effort across the country and around the world to disrupt, investigate, and prosecute money mule activity used to facilitate fraud schemes, especially those victimizing senior citizens. In 2019 actions were taken to halt the conduct of more than 600 domestic money mules, exceeding a similar effort against approximately 400 mules in the previous year.
   

Northern District of Georgia Elder Fraud Cases in 2020

In 2020, the U.S. Attorney’s Office for the Northern District of Georgia has prosecuted many defendants who have perpetrated elder fraud, including cases involving romance scams, retirement fraud, impersonation of government officials, identity theft, and timeshare fraud.

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

• In United States v. Okang, et al., twenty-four defendants were charged for their involvement in a large-scale fraud and money laundering operation that targeted citizens, corporations, and financial institutions throughout the United States. Business email compromise schemes, romance fraud scams, and retirement account scams, among other frauds, duped numerous victims, including many elderly individuals, into losing more than $30 million.
• In United States v. Alonge, et al., two defendants pleaded guilty based upon their involvement in a Nigeria-based romance scam that tricked victims into sending over $1.8 million.  Both defendants were sentenced to ten years in prison and ordered to pay restitution in the amount of $1,835,279.00.  The second sentencing occurred in January 2020.
• In United States v. Adara, et al., two defendants pleaded guilty based upon their involvement in a Nigeria-based romance scam.  Their sentencings are scheduled for later in 2020.
   

We also prosecute cases involving India-based centers that scammed U.S. residents, including the elderly.  Criminal India-based call centers seek to profit by exploiting U.S. residents through various phone scams, including the impersonation of government officials. The call center operators trick the victims and at times threaten consequences if they do not send money.  If the victims agree to pay, the call centers then turn to a network of U.S.-based co-conspirators to liquidate and launder the extorted funds. 

• In June 2020 in United States v. Patel, et al., two defendants were indicted for allegedly laundering over $400,000 in funds derived from an India-based tech support and Social Security scams that victimized numerous elderly individuals. 
   

• In United States v. Patel, the defendant pleaded guilty to wire fraud for using fake identifications to retrieve over $150,000 from over 160 victims of India-based tele-fraud.  His sentencing is scheduled for July 2020.
   
• In United States v. Excellent Solutions BPO, et al., eight defendants pleaded guilty and were subsequently sentenced in January 2020 to up to four years and nine months for their involvement in an India-based IRS impersonation scam that victimized thousands of United States residents and resulted in over $3.7 million in losses. 
   

In June 2020, in United States v. Durrell Tyler, the defendant was charged with access device fraud and aggravated identity theft where he possessed and used personal identifying information, including social security numbers, of elderly victims.

In January 2020, Katherine Craig was charged with mail fraud.  Craig allegedly embezzled over $1.7 million dollars from a company she was managing and defrauded over 1000 timeshare owners, most of whom were elderly retirees.  Craig operated the timeshare resort where she worked without casualty insurance, even though the Lease Agreements required the resort to maintain casualty insurance. Over the years, the buildings at the resort deteriorated through storm damage and neglect and by early 2016, the resort was in such bad shape that Craig was not allowing any timeshare owners to vacation there anymore.

The charges are allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

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 - Stephen Matthew Shumaker has been charged with mail fraud and knowingly distributing and selling a misbranded pesticidal device.

“Shumaker allegedly used the COVID-19 pandemic to sell a product that does not provide the benefits he advertised,” said U.S. Attorney Byung J. “BJay” Pak.  “We are proud to be part of the Georgia COVID-19 Task Force, which continues to identify and prosecute those who attempt to perpetrate Coronavirus-related fraud schemes.”

“The U.S. Postal Inspection Service will remain vigilant in bringing to justice anyone that seeks to defraud individuals during this pandemic,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division. “This scheme highlights the importance of collaborating with our law enforcement partners to investigate and stop those seeking to take advantage of innocent victims.”

“The defendant is charged with knowingly selling a fraudulent product during the COVID-19 public health emergency in order to make a profit,” said Environmental Protection Agency Assistant Administrator for Enforcement and Compliance Assurance Susan Bodine. “EPA and our partners in law enforcement remain vigilant to protect consumers from this kind of outrageous behavior. To find out how to protect yourself from fraudulent products please see EPA’s compliance advisory, available at https://www.epa.gov/sites/production/files/2020-05/documents/cornavirus-compliance-advisory.pdf.”

“Selling a misbranded pesticidal device as a protection for COVID-19 gives unsuspecting buyers a false sense of hope and places them in danger,” said acting Special Agent in Charge Robert Hammer, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI is proud to support the Georgia COVID-19 task force in protecting our citizens from these fraudsters.”

“The Federal Trade Commission appreciates the opportunity to work with the U.S. Attorney’s Office and the COVID-19 Task Force on such an important case,” said Anna Burns, the Commission’s Southeast Regional Director. “Interagency cooperation is essential to ensuring U.S. consumers are protected from fraud associated with the coronavirus pandemic.”

According to U.S. Attorney Pak, the charges, and other information presented in court: Shumaker allegedly engaged in a scheme to defraud by soliciting thousands of Georgia residents with false claims that the Beyond Guardian Air™ air purifier kills every major viral and bacterial infection, including the COVID-19 coronavirus disease, in the home. According to the EPA, the device for sale is also a misbranded pesticidal device, another violation of federal law.  

Stephen Matthew Shumaker, 43, of Marietta, Georgia, appeared before U.S. Magistrate Judge Christopher C. Bly.  Members of the public are reminded that a complaint 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.

The Department of Justice recommends that Americans take the following precautionary measures to protect themselves from known and emerging scams related to COVID-19:

            •           Independently verify the identity of any company, charity, or individual that contacts you regarding COVID-19.

            •           Check the websites and email addresses offering information, products, or services related to COVID-19.  Be aware that scammers often employ addresses that differ only slightly from those belonging to the entities they are impersonating.  For example, they might use “cdc.com” or “cdc.org” instead of “cdc.gov.”

            •           Be wary of unsolicited emails offering information, supplies, or treatment for COVID-19 or requesting your personal information for medical purposes.  Legitimate health authorities will not contact the general public this way.

            •           Do not click on links or open email attachments from unknown or unverified sources.  Doing so could download a virus onto your computer or device.

            •           Make sure the anti-malware and anti-virus software on your computer is operating and up to date.

            •           Ignore offers from suspicious sources for a COVID-19 vaccine, cure, or treatment.  Remember, if a vaccine becomes available, you won’t hear about it for the first time through an email, online ad, or unsolicited sales pitch.

            •           Check online reviews of any company offering COVID-19 products or supplies.  Avoid companies whose customers have complained about not receiving items.

            •           Research any charities or crowdfunding sites soliciting donations in connection with COVID-19 before giving any donation.  Remember, an organization may not be legitimate even if it uses words like “CDC” or “government” in its name or has reputable looking seals or logos on its materials.  For online resources on donating wisely, visit the Federal Trade Commission’s website at www.ftc.gov.

            •           Be wary of any business, charity, or individual requesting payments or donations in cash, by wire transfer, gift card, or through the mail.  Don’t send money through any of these channels.

            •           Be cautious of “investment opportunities” tied to COVID-19, especially those based on claims that a small company’s products or services can help stop the virus.  If you decide to invest, carefully research the investment beforehand.  For information on how to avoid investment fraud, visit the U.S. Securities and Exchange Commission (SEC) website.

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.    

The U.S. Postal Inspection Service, the Environmental Protection Agency and the U.S. Immigration and Customs Enforcement, Homeland Security Investigations are investigating this case, with valuable assistance from the Federal Trade Commission.

Special Assistant United States Attorney Valerie M. Verduce 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 - Hassan Ra El, a/k/a Rasheem Harrson Crockett has been sentenced to federal prison for defrauding business owners around the country to pay over $10 million dollars in advance fees for business loans, a scheme in which he falsely claimed to be a member of the Moroccan Royal Family.

“The defendant has been held responsible for his elaborate advance fee loan scheme that took advantage of individuals and businesses that hoped to raise needed capital,” said U.S. Attorney Byung J. “BJay” Pak. “We encourage consumers and business owners to be careful about whom they enter business relationships with, and to scrutinize websites and marketing materials carefully for any indication of fraud.”

“Postal Inspectors unraveled a sophisticated advanced fee scheme by following the financial tracks of this defendant,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division.  “The sentencing handed down in this case should serve as a warning to individuals who intend to misuse the U.S. Mails through deceptive practices.”

According to U.S. Attorney Pak, the charges and other information presented in court: Hassan Ra El operated a scheme to defraud business owners across the country who were seeking loans. El claimed that he was a wealthy investor and a member of the Moroccan Royal Family. El fraudulently claimed that he had access to Moroccan Royal Family funds that would be used to fund business loans. El created fraudulent documentation showing that insurance companies were offering default insurance policies on the loans. El convinced prospective loan applicants that they had to pay default insurance fees, typically 10% of the loan amount, before the loans would fund. When the loans failed to fund, El used fees from later loan applicants to partially refund fees from previous loan applicants.

In furtherance of the scheme, El created fraudulent bank statements purportedly showing that he or companies that he controlled had millions in bank accounts. El also created fraudulent email accounts and correspondence purportedly from insurance executives stating that loans had been approved. El used fees from loan applicants to fund his lifestyle, pay his living expenses, and to rent high-end automobiles, including a Ferrari, Range Rover and Lamborghini. El fraudulently induced victims to pay over $10 million dollars in advance fees. Neither El nor his companies funded any of the promised loans and loan applicants lost over $5 million dollars in the fraud scheme.

Hassan Ra El, a/k/a Rasheem Harrson Crockett, 45, of Chino Hills, California, was sentenced by U.S. District Judge William M. Ray II to 13 years and 11 months in prison, to be followed by three years of supervised release, and ordered to pay restitution in the amount of $5,510,001. El was convicted of mail fraud on January 15, 2020, after he pleaded guilty.  He was previously convicted of two counts of felony theft by deception in Douglas County, Georgia, for defrauding loan clients in 2006. After his convictions in Douglas County, El formerly changed his name from Rasheem Harrson Crockett to Hassan Ra El and continued to defraud prospective business owners seeking capital.

This case is being investigated by the U.S. Postal Inspection Service.

Assistant U.S. Attorneys Jeffrey Brown and Erin Sanders are prosecuting the case.

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

ATLANTA – Attorney General William P. Barr has directed federal law enforcement actions aimed at apprehending and charging the violent criminal agitators who have taken over peaceful protests and are engaging in violations of federal law.  The U.S. Attorneys from the Northern, Middle, and Southern Districts of Georgia, along with the Federal Bureau of Investigation (FBI) are employing the FBI Joint Terrorism Task Force (JTTF) to identify criminal organizers and instigators, coordinating federal resources with state and local partners, and seeking federal prosecutions where applicable.        

“The Attorney General has made it clear that those who instigate or carryout violence will be arrested and prosecuted,” said U.S. Attorney Byung J. “BJay” Pak.  “Americans enjoy the right to peacefully assemble and protest.  However, when it turns violent and destructive, a line has been crossed.  We are employing every federal asset our districts have to assist our state and local partners as they work to maintain order and public safety.” 

“The right to peaceful protest is protected by the First Amendment, but there is no cover for the violent, needless destruction of personal property, and the chaos we have witnessed across the country over the past several days. Let me be clear: anyone who chooses that criminal path will be aggressively prosecuted by our office,” said Charlie Peeler, U.S. Attorney for the Middle District of Georgia. “I want to thank our federal, state, and local law enforcement officers, and Georgia’s National Guard, who are on the ground protecting our lawful right of expression, as well as our property and safety.”

“Peaceful demonstrations throughout the Southern District in recent weeks have been a model for appropriate exercises of citizens’ constitutional right to express their grief and concerns,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “If anyone, whether locals or outside individuals, escalates to unlawful behavior and disrupts our communities, we stand ready to assist local law enforcement with federal resources to safeguard the lives and property of our citizens.”

“The FBI is dedicated to protecting our citizens and upholding the Constitution,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The Constitution gives every citizen the right to protest peacefully, but when a few people abuse the rights of the many peaceful protesters by stoking violence and destroying property, we must enforce the law. Federal prosecutions are a tool we will use to assist our state and local law enforcement partners who are on the front lines trying to maintain order.”

Attorney General Barr’s statement is available here:  https://www.justice.gov/opa/pr/attorney-general-william-p-barrs-statement-riots-and-domestic-terrorism

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

A Georgia woman who sold an unregistered pesticide, which she claimed protected against viruses such as COVID-19, has pleaded guilty to violating the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA).

Rong Sun, aka Vicky Sun, 34, of Fayetteville, Georgia, pleaded guilty today before U.S. Magistrate Judge John K. Larkins III.  Sentencing has been scheduled for June 29 before Judge Larkins III.

“Registration under FIFRA helps ensure that pesticides sold in the U.S. work and are safe for humans. The trafficking in snake-oil remedies outside of FIFRA is a criminal act and anyone who does so, especially during this pandemic, will find federal law enforcement ready to stop them,” said Assistant Attorney General Jeffrey Bossert Clark for the Justice Department’s Environment and Natural Resources Division. “The U.S. Department of Justice will not stand by while criminal conduct risks people’s health and safety.”

“We will act quickly and decisively to protect the health of our community,” said U.S. Attorney Byung J. “BJay” Pak of the Northern District of Georgia.  “As Georgia and the country battle a global pandemic, we need safe and effective treatments, not ones that threaten the health of our citizens.”

“This case shows that consumers need to be cautious of products that make unsubstantiated claims of controlling viruses,” said U.S. Environmental Protection Agency (EPA) Assistant Administrator for Enforcement and Compliance Assurance Susan Bodine.  “EPA and our law enforcement partners continue to work to stop the sale of these illegal products.  Consumers can help protect themselves by visiting epa.gov/coronavirus for a list of approved products.”

“Playing on people’s fears during this pandemic by offering false hope and the empty promise of protection is not only dangerous, it’s also reprehensible and illegal,” said acting Special Agent in Charge Robert Hammer, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama.  “HSI and its partners are working diligently to investigate and arrest those criminals that are trying to take advantage of Americans during this pandemic.”

“A large part of the U.S. Postal Inspection Service mission is to ensure public trust in the mail,” said Tommy D. Coke, Inspector in Charge of the U.S. Postal Inspection Service (USPIS) Atlanta Division.  “When individuals challenge that mission, Postal Inspectors will aggressively investigate those seeking to deceive during this crisis for their own financial gain.”

According to the charges and other information presented in court, the defendant sold an unregistered pesticide, “Toamit Virus Shut Out,” through eBay, claiming that it would help protect individuals from viruses.  Marketed as “Virus Shut Out” and “Stop The Virus,” the pesticide took the form of a card-shaped device to be worn around the user’s neck.  The eBay listing depicted the removal of viruses by wearing the “Virus Shut Out” and “Stop The Virus” product.  Additionally, the listing stated that “its main ingredient is ClO2, which is a new generation of widely effective and powerful fungicide recognized internationally at present.  Bacteria and viruses can be lifted up within 1 meter of the wearer’s body, just like a portable air cleaner with its own protective cover.”  It also stated that “[i]n extraordinary times, access to public places and confined spaces will be protected by one more layer and have one more layer of safety protection effect, thus reducing the risks and probability of infection and transmission.”

Under FIFRA, the EPA regulates the production, sale, distribution and use of pesticides in the United States.  A pesticide is any substance intended for preventing, destroying, repelling, or mitigating any pest, which includes viruses.  Pesticides must be registered with the EPA. Toamit Virus Shut Out was not registered, and it is illegal to distribute or sell unregistered pesticides.  Sun imported the pesticide from Japan and later sold it to individuals around the United States.

The EPA has taken steps to block the importation and sale of Toamit Virus Shut Out in the United States:  https://www.epa.gov/newsreleases/epa-administrator-wheeler-talks-retailers-and-third-party-marketplace-platforms-discuss and https://www.epa.gov/newsreleases/us-epa-acts-protect-public-unregistered-virus-shut-out-product-imported-honolulu-and.

This case is being investigated by the EPA-Criminal Investigation Division, HSI, and USPIS.

Senior Counsel Krishna Dighe of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorney Christopher J. Huber, Deputy Chief of Complex Frauds, are prosecuting the case.

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.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

NEWNAN, Ga. - Rong Sun, who sold an unregistered pesticide as protection against viruses such as COVID-19, has pleaded guilty to violating the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA).

“We will act quickly and decisively to protect the health of our community,” said U.S. Attorney Byung J. “BJay” Pak.  “As Georgia and the country battle a global pandemic, we need safe and effective treatments, not ones that threaten the health of our citizens.”

“Registration under FIFRA helps ensure that pesticides sold in the U.S. work and are safe for humans. The trafficking in snake-oil remedies outside of FIFRA is a criminal act and anyone who does so, especially during this pandemic, will find federal law enforcement ready to stop them,” said Assistant Attorney General Jeffrey Bossert Clark for the Justice Department’s Environment and Natural Resources Division. “The U.S. Department of Justice will not stand by while criminal conduct risks people’s health and safety.”

“This case shows that consumers need to be cautious of products that make unsubstantiated claims of controlling viruses,” said Environmental Protection Agency (EPA) Assistant Administrator for Enforcement and Compliance Assurance Susan Bodine.  “EPA and our law enforcement partners continue to work to stop the sale of these illegal products.  Consumers can help protect themselves by visiting epa.gov/coronavirus for a list of approved products.”

“Playing on people’s fears during this pandemic by offering false hope and the empty promise of protection is not only dangerous, it’s also reprehensible and illegal,” said acting Special Agent in Charge Robert Hammer, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI and its partners are working diligently to investigate and arrest those criminals that are trying to take advantage of Americans during this pandemic.”

“A large part of the U.S. Postal Inspection Service mission is to ensure public trust in the mail,” said Tommy D. Coke, Inspector in Charge of the U.S. Postal Inspection Service Atlanta Division. “When individuals challenge that mission, Postal Inspectors will aggressively investigate those seeking to deceive during this crisis for their own financial gain.”

According to U.S. Attorney Pak, the charges and other information presented in court: The defendant sold an unregistered pesticide, Toamit Virus Shut Out, through eBay, claiming that it would help protect individuals from viruses.  The pesticide was marketed as “Virus Shut Out” and “Stop The Virus.”  The eBay listing depicted the removal of viruses by wearing the “Virus Shut Out” and “Stop The Virus” product.  Additionally, the listing stated that “its main ingredient is ClO2, which is a new generation of widely effective and powerful fungicide recognized internationally at present.  Bacteria and viruses can be lifted up within 1 meter of the wearer’s body, just like a portable air cleaner with its own protective cover.”  It also stated that “In extraordinary times, access to public places and confined spaces will be protected by one more layer and have one more layer of safety protection effect, thus reducing the risks and probability of infection and transmission.”
The listing further claimed that Toamit is “Office and home essentials during viral infections reduce transmission risk by 90%.”

Under FIFRA, the EPA regulates the production, sale, distribution and use of pesticides in the United States.  A pesticide is any substance intended for preventing, destroying, repelling, or mitigating any pest.  The term “pest” includes viruses.  Pesticides are required to be registered with the EPA. Toamit Virus Shut Out was not registered and it is illegal to distribute or sell unregistered pesticides.  Sun imported the pesticide from Japan and later sold it to individuals around the United States.

The EPA has taken steps to block the importation and sale of Toamit Virus Shut Out in the United States:  https://www.epa.gov/newsreleases/epa-administrator-wheeler-talks-retailers-and-third-party-marketplace-platforms-discuss and https://www.epa.gov/newsreleases/us-epa-acts-protect-public-unregistered-virus-shut-out-product-imported-honolulu-and.

The charges carry penalties of up to one year in prison and a $100,000 fine.  In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.

Sentencing for Rong Sun, a/k/a Vicky Sun, 34, of Fayetteville, Georgia, is set for June 29, 2020 at 10:00 a.m., before U.S. Magistrate Judge John K. Larkins III.

This case is being investigated by the Environmental Protection Agency-Criminal Investigation Division, Homeland Security Investigations, and U.S. Postal Inspection Service.

Assistant U.S. Attorney Christopher J. Huber, Deputy Chief Complex Frauds, and Senior Counsel Krishna Dighe of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division are prosecuting the case.

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.

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 – Charles E. Taylor has been sentenced to federal prison for hacking his former Atlanta-based employer and sabotaging their internal communications network, causing more than $800,000 in damage.

“Taylor deliberately sabotaged the computer network he had been entrusted to protect because he was upset with his former employer,” said U.S. Attorney Byung J. “BJay” Pak. “Corporate insiders like Taylor cause significant losses through hacking activity each year, and companies must remain vigilant against insider threats to their network security.”

“Taylor used sabotage to betray the trust placed in him by his employer, causing extreme hardship for the company and his fellow employees,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “No amount of subterfuge will protect cyber criminals from being unmasked, arrested and prosecuted by FBI investigators and federal prosecutors.”

According to U.S. Attorney Pak, the charges and other information presented in court: In 2013, Taylor, a resident of Jacksonville, Arkansas, was hired as a systems administrator for a lumber and building materials wholesaler. In early 2018, a large Atlanta-based building products distributor acquired the company. Taylor kept his job as a senior systems engineer after the merger, but he was unhappy with the newly combined company and resigned in July 2018.

A month after his departure, Taylor conducted a multi-stage sabotage campaign targeting the company’s network. Using information he gained in his employment, Taylor logged into the network remotely without authorization and used encryption methods to hide his network connections. In mid-August 2018, Taylor changed passwords for network routers located at dozens of company warehouses. Company employees were unable to access the routers, and the company replaced them shortly thereafter at a cost of roughly $100,000.

Days later, Taylor issued a shutdown command for a central command server on the company’s network, crippling internal communications at the company. As the company worked to restore its network over a two-day period, employees at several of its branches were forced to take customer orders by hand and field incoming orders using their personal cell phones. In total, the server sabotage cost the company over $700,000 dollars in lost profits and remediation costs.

Charles E. Taylor, 60, of Jacksonville, Arkansas, was sentenced by U.S. District Judge J.P. Boulee to one year and six months in prison, to be followed by three years of supervised release - one year of which will be served on home detention - and ordered to pay restitution in the amount of $834,510. Taylor was convicted of computer fraud on February 19, 2020, after he pleaded guilty.

The Federal Bureau of Investigation investigated this case.

Assistant U.S. Attorney Nathan P. Kitchens, Deputy Chief of the Cyber and Intellectual Property Crimes 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 – Santwon Antonio Davis has been charged with defrauding his employer by allegedly faking a positive COVID-19 medical excuse letter, causing the employer to stop business and sanitize the workplace.  Davis has since admitted that he did not have COVID-19. 

“The defendant caused unnecessary economic loss to his employer and distress to his coworkers and their families,” said U.S. Attorney Byung J. “BJay” Pak.  “We will take quick action through the Georgia COVID-19 Task Force to put a stop to criminals preying on Georgia companies and the public with Coronavirus-related fraud schemes.”

“Scammers continue to take advantage of the COVID-19 pandemic through a variety of means,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “We receive numerous complaints every day and this case is a reminder that we remain vigilant in detecting, investigating and prosecuting any wrongdoing related to the crisis.”

According to U.S. Attorney Pak, the charges, and other information presented in court: The defendant, 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 falsified medical record to his employer.  In concern for its employees and customers, the corporation closed its facility for cleaning and paid its employees during the shutdown. This caused a loss in excess of $100,000 to the corporation and the unnecessary quarantine of several of the defendant’s coworkers.

Santwon Antonio Davis, 34, of Morrow, Georgia, made his initial appearance before U.S. Magistrate Judge Justin S. Anand.  Members of the public are reminded that the complaint 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.

The Federal Bureau of Investigation is investigating this case.

Assistant U.S. Attorneys Russell Phillips and Sarah Klapman are prosecuting the case.

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.

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 honor of National Police Week, U.S. Attorney Byung J. “BJay” Pak salutes the service and sacrifice of federal, state, local, and tribal law enforcement. The week will be observed through Saturday, May 16, 2020.         

“There is no more noble profession than serving as a police officer,” said Attorney General Barr. “The men and women who protect our communities each day have not just devoted their lives to public service, they’ve taken an oath to give their lives in order to ensure our safety. And they do so not only in the face of hostility from those who reject our nation’s commitment to the rule of law, but also in the face of evolving adversity – such as an unprecedented global health pandemic. This week, I ask all Americans to join me in saying ‘thank you’ to our nation’s federal, state, local, and tribal law enforcement officers. Their devotion and sacrifice to our peace and security will not be taken for granted.”

“In 2019, the State of Georgia lost seven peace officers, four of whom were from the Northern District of Georgia,” said U.S. Attorney Byung J. “BJay” Pak.  “These officers died while serving and protecting their communities.  Along with 744 officers who lost their lives in the line of duty before them, we honor these officers for their service and their sacrifice.  We also thank the families of these officers, and express our deepest sympathies for their loss.” 

In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices.  Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty.  

Each year, during National Police Week, our nation celebrates the contributions of law enforcement from around the country, recognizing their hard work, dedication, loyalty and commitment to keeping our communities safe. This year the COVID-19 pandemic has underscored law enforcement officers’ courage and unwavering devotion to the communities they swore to serve.

Based on data collected and analyzed by the FBI’s Law Enforcement Officer Killed and Assaulted (LEOKA) Program, 89 law enforcement officers died nationwide in the line of duty in 2019, including four officers here in the Northern District of Georgia].

• Deputy Nicholas Blane Dixon
  Hall County Sheriff’s Office, End of Watch July 8, 2019
• Deputy Michaela Elizabeth Smith
  Murray County Sheriff’s Office, End of Watch July 3, 2019
• Deputy Spencer Allen Englett
  Forsyth County Sheriff’s Office, End of Watch April 4, 2019
• Officer James Joseph “JJ” Biello
  Atlanta Police Department, End of Watch April 28, 2019

Comprehensive data tables about these incidents and brief narratives describing most of the fatal attacks are included in the sections of Law Enforcement Officers Killed and Assaulted, 2019.

The names of the fallen officers who have been added in 2020 to the wall at the National Law Enforcement Memorial were read on Wednesday, May 13, 2020, during a Virtual Annual Candlelight Vigil. Because public events have been suspended as a result of COVID-19, the vigil was livestreamed for the public. To view the online event, please visit www.LawMemorial.org.

To learn more about National Police Week and the virtual candlelight vigil, please visit www.policeweek.org.

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’s Civil Rights Division and the U.S. Attorney’s Office for the Northern District of Georgia have filed a lawsuit against Crimson Management LLC, Benefield Housing Partnership d/b/a Cedartown Commons, and Cedartown Housing Associates, d/b/a Cedarwood Village, alleging housing discrimination against African-American applicants who are elderly or have a disability, in violation of the Fair Housing Act.
 
“More than 50 years after the passage of the Fair Housing Act, cases like this demonstrate that there is still work to be done to ensure that all people, regardless of race and color, have equal access to housing,” said U.S. Attorney Byung J. “BJay” Pak.  “My office will continue to devote resources to investigate and eradicate housing discrimination.” 

“Congress enacted the Fair Housing Act in 1968 to protect Americans from the racially motivated violence and discrimination that has stained our nation’s history.  More than five decades later, our nation regrettably continues to suffer the scourge of racial bias,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division.  “The Department of Justice will continue to fight to protect the rights of all Americans to rent and own their homes without regard to their race.”

The lawsuit alleges that from at least 2012 to 2018, the defendants steered African-American housing applicants who are elderly or have a disability away from Cedarwood Village, a predominantly white housing complex, to Cedartown Commons, a predominantly African-American housing complex, which is inferior in appearance, location, and amenities to Cedarwood Village. Both complexes are located in Cedartown, Georgia. The complaint also alleges that the defendants subjected African-American residents who are elderly or have a disability to less favorable rental terms, conditions, and privileges as compared to similarly situated white tenants, and denied these African-American applicants more desirable units at the Village. 

This lawsuit seeks monetary damages to compensate the victims, civil penalties, and a court order barring future discrimination. The complaint contains allegations of unlawful conduct, which must be proven in federal court.

Fighting illegal housing discrimination is a priority for the U.S. Attorney’s Office for the Northern District of Georgia. The Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe they have been victims of housing discrimination at the defendants’ properties may contact the U.S. Attorney’s Office by calling (404) 581-4626 and email any questions to USAGAN.Civil.Rights@usdoj.gov.  You can also report complaints to the by calling 1-800-896-7743, and select option number 1 to leave a message, or sending an e-mail to www.fairhousing@usdoj.gov.

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

The year 2020 marks the 150th anniversary of the Justice Department. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

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 stars in Love & Hip Hop: Atlanta, has been arrested on federal bank fraud charges arising from a Paycheck Protection Program (“PPP”) loan that he obtained in the name of Flame Trucking.

“The defendant allegedly took advantage of the emergency lending provisions of the Paycheck Protection Program that were intended to assist employees and small businesses battered by the Coronavirus,” said U.S. Attorney Byung J. “BJay” Pak.  “We will investigate and charge anyone who inappropriately diverts these critical funds for their own personal gain.”

“The defendant allegedly stole money meant to assist hard-hit employees and businesses during these difficult times, and instead greedily used the money to bankroll his lavish purchases of jewelry and other personal items,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division.  “The department will remain steadfast in our efforts to root out and prosecute frauds against the Paycheck Protection Program.”
 
“At a time when small businesses are struggling for survival, we cannot tolerate anyone driven by personal greed, who misdirects federal emergency assistance earmarked for keeping businesses afloat,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI and our federal partners remain vigilant during this Coronavirus pandemic to make sure funds provided by programs like PPP are used as intended.”

“The defendant allegedly egregiously sought personal gain from a program intended to assist hardworking Americans in this challenging time,” said Special Agent-in-Charge Kevin Kupperbusch of the Small Business Association Office of Inspector General (SBA OIG) Eastern Region.  “SBA OIG and its law enforcement partners will aggressively pursue allegations of wrongdoing to maintain the integrity of SBA’s programs.  I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
        
According to U.S. Attorney Pak, the charges, and other information presented in court:  Maurice Fayne is the sole owner of a Georgia corporation called Flame Trucking.  On April 15, 2020, Fayne signed and submitted to United Community Bank (“UCB”) a PPP loan application in the name of Flame Trucking stating that the business had 107 employees and an average monthly payroll of $1,490,200. In seeking a loan in the amount of $3,725,500, Fayne certified that the 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.”

UCB ultimately funded the loan for $2,045,800.  Within days, Fayne allegedly used more than $1.5 million of the PPP loan proceeds to purchase $85,000 in jewelry, including a Rolex Presidential watch, a diamond bracelet, and a 5.73 carat diamond ring for himself, to lease a 2019 Rolls Royce Wraith, to make loan payments, and to pay $40,000 for child support.  Such payments are not an authorized use of PPP funds under the CARES Act.

On May 6, 2020, Fayne was interviewed by federal agents and admitted that he submitted a PPP loan application on behalf of Flame Trucking.  Fayne claimed that he used all of the PPP loan proceeds to pay payroll and other business expenses incurred by Flame Trucking and denied using any of the PPP loan proceeds to pay his personal debts and expenses.

On May 11, 2020, agents executed a search at Fayne’s residence in Dacula and seized approximately $80,000 in cash, including $9,400 that Fayne had in his pockets, and the jewelry he purchased with the PPP funds.  Agents also executed seizure warrants for three bank accounts that Fayne owned or controlled and seized approximately $503,000 in PPP funds.

The CARES Act is a federal law enacted on March 29, 2020, 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.

The PPP allows qualifying small-businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 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.
Maurice Fayne, a/k/a Arkansas Mo, 37, of Dacula, Georgia, was charged with bank 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 in conjunction with the Atlanta Complex Financial Crimes Task Force supported by the Gwinnett County Sheriff's Office, and the Small Business Administration-Office of the Inspector General.

Assistant U.S. Attorneys Russell Phillips, Bernita Malloy, and Michael J. Brown are prosecuting the case.

Georgia’s COVID-19 Task Force warns the public to be on the lookout for potential increased criminal activity related to federal stimulus checks, fake COVID-19 cures, personal protective equipment (PPE) price gouging and fair housing violations. The public can report potential scams to the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or to the NCDF e-mail address disaster@leo.gov. The public can also file complaints with the Attorney General’s Office by calling 800-869-1123 (toll-free) or at www.consumer.ga.gov.

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

A reality TV personality who stars in Love & Hip Hop: Atlanta, has been arrested on federal bank fraud charges arising from a Paycheck Protection Program (PPP) loan that he obtained in the name of Flame Trucking.

Maurice Fayne, aka Arkansas Mo, 37, of Dacula, Georgia, was charged with bank fraud and made his initial appearance this afternoon before U.S. Magistrate Judge Justin S. Anand. 

“The defendant allegedly stole money meant to assist hard-hit employees and businesses during these difficult times, and instead greedily used the money to bankroll his lavish purchases of jewelry and other personal items,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division.  “The department will remain steadfast in our efforts to root out and prosecute frauds against the Paycheck Protection Program.”

“The defendant allegedly took advantage of the emergency lending provisions of the Paycheck Protection Program that were intended to assist employees and small businesses battered by the Coronavirus,” said U.S. Attorney Byung J. “BJay” Pak of the Northern District of Georgia.  “We will investigate and charge anyone who inappropriately diverts these critical funds for their own personal gain.”

“At a time when small businesses are struggling for survival, we cannot tolerate anyone driven by personal greed, who misdirects federal emergency assistance earmarked for keeping businesses afloat,” said Special Agent in Charge Chris Hacker of the FBI’s Atlanta Field Office. “The FBI and our federal partners remain vigilant during this Coronavirus pandemic to make sure funds provided by programs like PPP are used as intended.”

“The defendant allegedly egregiously sought personal gain from a program intended to assist hardworking Americans in this challenging time,” said Special Agent in Charge Kevin Kupperbusch of the Small Business Association Office of Inspector General (SBA OIG) Eastern Region.  “SBA OIG and its law enforcement partners will aggressively pursue allegations of wrongdoing to maintain the integrity of SBA’s programs.  I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”

According to the charges and other information presented in court, Fayne is the sole owner of a Georgia corporation called Flame Trucking.  On April 15, 2020, Fayne signed and submitted to United Community Bank (UCB) a PPP loan application in the name of Flame Trucking stating that the business had 107 employees and an average monthly payroll of $1,490,200.  In seeking a loan in the amount of $3,725,500, Fayne certified that the 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.”

UCB ultimately funded the loan for $2,045,800.  Within days, Fayne allegedly used more than $1.5 million of the PPP loan proceeds to purchase $85,000 in jewelry, including a Rolex Presidential watch, a diamond bracelet, a 5.73 carat diamond ring for himself, and to pay $40,000 for child support.  Such payments are not an authorized use of PPP funds under the CARES Act.

On May 6, 2020, Fayne was interviewed by federal agents and admitted that he submitted a PPP loan application on behalf of Flame Trucking.  Fayne claimed that he used all of the PPP loan proceeds to pay payroll and other business expenses incurred by Flame Trucking and denied using any of the PPP loan proceeds to pay his personal debts and expenses.           

On May 11, 2020, agents executed a search at Fayne’s residence in Dacula and seized approximately $80,000 in cash, including $9,400 that Fayne had in his pockets, and the jewelry he purchased with the PPP funds, and further discovered a 2019 Rolls-Royce Wraith, which still had a temporary dealer tag on it.  Agents also executed seizure warrants for three bank accounts that Fayne owned or controlled and seized approximately $503,000 in PPP funds.

The CARES Act is a federal law enacted on March 29, 2020, 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.

The PPP allows qualifying small-businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 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.

The charges are merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law. 

The FBI and SBA OIG are investigating the case.

Assistant Chief L. Rush Atkinson of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Russell Phillips, Bernita Malloy, and Michael J. Brown of the Northern District of Georgia are prosecuting the case.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

The Justice Department announced today that it has filed a lawsuit against Crimson Management LLC, Benefield Housing Partnership d/b/a Cedartown Commons, and Cedartown Housing Associates, d/b/a Cedarwood Village, alleging that they violated the Fair Housing Act by intentionally discriminating on the basis of race against African-American applicants for housing. 

“Congress enacted the Fair Housing Act in 1968 to protect Americans from the racially motivated violence and discrimination that has stained our nation’s history.  More than five decades later, our nation regrettably continues to suffer the scourge of racial bias,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division.  “The Department of Justice will continue to fight to protect the rights of all Americans to rent and own their homes without regard to their race.” 

“More than 50 years after the passage of the Fair Housing Act, cases like this demonstrate that there is still work to be done to ensure that all people, regardless of race and color, have equal access to housing,” said U.S. Attorney Byung J. “BJay” Pak for the Northern District of Georgia.   “My office will continue to devote resources to investigate and eradicate housing discrimination.” 

The lawsuit, filed in the U.S. District Court for the Northern District of Georgia, alleges that from at least 2012 to 2018, the defendants steered African-American housing applicants who are elderly or have a disability away from Cedarwood Village, a predominantly white housing complex, to Cedartown Commons, a predominantly African-American housing complex, which is inferior in appearance, location, and amenities to Cedarwood Village.  Both complexes are located in Cedartown, Georgia.  The complaint also alleges that the defendants subjected African-American residents who are elderly or have a disability to less favorable rental terms, conditions, and privileges as compared to similarly situated white tenants, and denied these African-American applicants more desirable units at the Village. 

Today’s lawsuit seeks monetary damages to compensate the victims, civil penalties, and a court order barring future discrimination.  The complaint contains allegations of unlawful conduct, which must be proven in federal court.

Fighting illegal housing discrimination is a top priority for the Justice Department.  The Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability.  More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.  Individuals who believe they have been victims of housing discrimination at the defendants’ properties may contact the Justice Department by calling 1-833-591-0294 to leave a message, or sending an e-mail to fairhousing@usdoj.gov.

ROME, Ga. - Virgil “Bud” Jesse Dupree, Jr., has been arraigned on multiple counts of producing and possessing child pornography. 

“We have zero tolerance for those who target and victimize children,” said U.S. Attorney Byung J. “BJay” Pak. “This case is a reminder of the types of predators that lurk online, and that parents need to be vigilant in monitoring their children’s social media activity.”

“Our investigators are confronted every day with the reality that some people are intent on hurting and abusing our young children,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “That is why we are committed to protecting them and to prosecuting anyone who tries to harm them.”

According to U.S. Attorney Pak, the charges, and other information presented in court: Since at least May 2016, Dupree communicated with teenage girls he met on an online messenger service. While chatting with these girls, Dupree allegedly induced at least four minor girls to send him sexually explicit images and videos of themselves over the Internet. During the execution of a search warrant at his residence in May 2019, agents recovered multiple electronic devices containing thousands of images and videos of child pornography. These images included sexually explicit images and videos of the girls that he met online.

Virgil “Bud” Jesse Dupree, Jr., 61, of Rockmart, Georgia, was arraigned before U.S. Magistrate Judge Walter E. Johnson. Dupree was indicted by a federal grand jury on March 10, 2020.  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.

Anyone with information, or who may have been a victim in this case, please contact the FBI at 770-216-3000.

The Federal Bureau of Investigation is investigating this case, with cooperation from the Polk County Police Department.

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

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

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

ATLANTA - Aviation maintenance student Frank A. Jalion Amaro has pleaded guilty to bribing an FAA Designated Mechanic Examiner in exchange for receiving a passing score on the FAA’s Airframe and Powerplant examination.

“The public trusts that the men and women who perform maintenance on commercial aircraft have the proper credentials and qualifications,” said U.S. Attorney Byung J. “BJay” Pak. “By attempting to buy his certification, Amaro took the easy way out and could have put the safety of those citizens who fly in jeopardy.”

“This investigation demonstrates that ensuring the safety of the Nation’s air transportation system remains a high priority for both the Office of Inspector General (OIG) and the Department of Transportation (DOT),” said Todd A. Damiani, Regional Special Agent-in-Charge, DOT-OIG. “Thanks to the cooperation and dedicated efforts of the Federal Aviation Administration, its Designated Mechanic Examiner workforce, and our prosecutorial partners, we successfully prevented the aircraft maintenance certification of an unethical and ill-qualified individual.”

According to U.S. Attorney Pak, the charges, and other information presented in court: the Federal Aviation Administration (“FAA”) is an agency of the United States Department of Transportation that is responsible for the regulation and oversight of civil aviation in the United States, including the operation and development of the National Airspace System and the management of commercial space transportation. The FAA’s primary mission is to ensure the safety of civil aviation.

As part of its responsibility to protect the integrity and safety of the American civil aviation system, the FAA requires mechanics and repairmen to obtain an Airframe and Powerplant Certificate to perform maintenance on aircraft and approve equipment for returns to service. To receive an Airframe and Powerplant Certificate, the FAA requires mechanics to complete 1900 hours of classroom and practical training and to pass several tests covering 43 technical subjects.

Amaro was a student at an aviation maintenance school in Las Vegas, Nevada. In late 2019, Amaro was preparing to take the examination to obtain an FAA Airframe and Powerplant Certificate. On November 19, 2019, Amaro contacted an FAA Designated Mechanic Examiner (“FAA Examiner”) in the Atlanta-metropolitan area. As a Designated Mechanic Examiner, the FAA authorized the FAA Examiner to perform activities on its behalf, including administering the Airframe and Powerplant examination.

Beginning on November 19, 2019, Amaro (using an alias and fake phone number) contacted the FAA Examiner and offered to pay the FAA Examiner a bribe payment in exchange for receiving a passing score on the Airframe and Powerplant examination. The FAA Examiner immediately reported Amaro’s bribe solicitation and, thereafter, agreed to work with federal law enforcement authorities. 

Over the next several weeks, Amaro and the FAA Examiner agreed that Amaro would take the Airframe and Powerplant examination in Duluth, Georgia on December 16, 2019.  As part of the agreement, Amaro offered to pay the FAA Examiner $500 upfront and $2,000 on the day of the test, in exchange for receiving a passing score on the Airframe and Powerplant examination.

On December 9, 2019, Amaro sent the FAA Examiner $500 via a mobile payment service. On December 16, 2019, Amaro met the FAA Examiner in Duluth, Georgia, and paid the FAA Examiner $2,000 in cash for a passing score on the Airframe and Powerplant examination.

On March 5, 2020, the U.S. Attorney charged Frank A. Jalion Amaro, 21, of Las Vegas, Nevada, in a criminal information with bribery.  Amaro pleaded guilty to that charge.      

The Department of Transportation – Office of Inspector General is investigating this case.

Assistant U.S. Attorney Jeffrey W. Davis is prosecuting the case.

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

ATLANTA – U.S. Attorney Byung J. “BJay” Pak will join representatives from the Securities and Exchange Commission (SEC), Georgia Secretary of State, and the AARP in a tele-town hall meeting to provide information to Georgia residents to help them identify and avoid fraudulent schemes related to the Coronavirus (COVID-19).

“Scammers are taking advantage of the global pandemic in order to swindle U.S. residents, including many seniors, out of their hard-earned money,” said U.S. Attorney Byung J. “BJay” Pak. “Our public outreach efforts are designed to provide knowledge that will empower Georgia’s seniors to identify, guard against, and report such scams.”

“As our country deals with the impact of COVID-19, fraudsters will use these events to lure investors into scams.  We are pleased to partner with the United States Attorney’s Office in Atlanta, the Georgia Secretary of State and the AARP to talk with seniors and other investors about ways to recognize and report these schemes,” said SEC Atlanta Regional Director, Richard R. Best.

“Led by the Securities and Charities Division and its Director Noula Zaharis, we have been warning Georgians about potential scams since the early days of coronavirus in our state,” said Secretary of State Brad Raffensperger. “These frauds take advantage of the elderly and the scared, robbing them of the money they need to get through tough times. I am excited to partner with the U.S. Attorney Pak and the Securities and Exchange Commission to get the word out and protect the people of Georgia.”

U.S. Attorney Pak, SEC Atlanta Regional Director Richard R. Best, Georgia Secretary of State Securities and Charities Division Director Noula Zaharis, and AARP Georgia State President Lee Baker will be the speakers.  The moderator for the event will be seven-time Emmy award winner, and host of GPB’s Lawmakers, Donna Lowry.  The tele-town hall will happen on Thursday, May 21, 2020 from 6:20 p.m., until 7:20 p.m.

AARP members will receive an email inviting them to participate in the town hall. Those who wish participate may register here https://vekeo.com/georgiasecstate/.

During the current health crisis, federal investigators and prosecutors continue to fulfill their critical mission of protecting public safety. Federal officials have prioritized the disruption, investigation and prosecution of crimes related to COVID-19, including fraudulent schemes, unapproved treatments, and scams related to stimulus money. During the tele-town hall, federal officials will discuss the current COVID-19 schemes and will provide tips on how to avoid becoming a victim.

The U.S. Attorney’s Office for the Northern District of Georgia is part of Georgia’s COVID-19 Fraud Task Force.  This Task Force works to better protect the citizens of Georgia from criminal fraud arising from the pandemic. 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. 

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

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

ATLANTA – Xiao-Jiang Li has pleaded guilty to a criminal information charging him with filing a false tax return and was sentenced by a U.S. District Judge on the same day.  Dr. Li, a former Emory University professor and Chinese Thousand Talents Program participant, worked overseas at Chinese Universities and did not report any of his foreign income on his federal tax returns.

“This defendant thought that he could live two, separate lives—one here at Emory University and one in China as a Thousand Talents Program participant,” said U.S. Attorney Byung J. “BJay” Pak. “Eventually, the truth caught up to this defendant, and he is now a convicted felon who is ordered to repay over $35,000 to the IRS.”

“The Department of Justice remains vigilant over programs such as the Thousand Talents Program that recruits professors and researchers to work for China,” said Assistant Attorney General for National Security John C. Demers. “In this case, Li was caught in his lack of transparency. We are grateful for the work our partners have done to bring light to this case.”

“IRS Criminal Investigation is diligent when it comes to enforcing tax laws directed at those who attempt to defraud our nation’s tax system," said James E. Dorsey, Special Agent in Charge of Atlanta Field Office. “This sentencing is an example that federal tax crimes will not go unpunished. Those consequences include being a convicted felon and paying back all the taxes owed including penalties and interest.”  

“Li's actions demonstrated a flagrant disrespect for the law and taxpayers,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI and our federal partners will always pursue individuals like Li, who victimize innocent taxpayers for their own personal gain.”

“Our watchdog agency will continue to aggressively investigate anyone who does not adhere to agency rules regarding the disclosure of foreign funding and affiliations,” said Special Agent in Charge Derrick L. Jackson, U.S. Department of Health and Human Services Office of Inspector General.  “We will continue to work closely with our law enforcement partners to bring these types of cases to justice.”

According to U.S. Attorney Pak, the charges and other information presented in court: In late 2011, while employed at Emory University, Li joined the Thousand Talents Program, a Chinese-government talent recruitment initiative that targets professors and researchers to work in China. Starting in 2012 and continuing until 2018, Li, while still working at Emory University researching, among other things, the use of large animal models to investigate Huntington’s disease, also worked at two Chinese universities—first at the Chinese Academy of Sciences and then at Jinan University—conducting similar large animal model research. Over those six years, Li earned at least $500,000 in foreign income that he never reported on his federal income tax returns.

Li’s false income tax returns came to light after the National Institutes of Health (“NIH”) reviewed Li’s NIH research grant applications and became concerned that he had failed to disclose, among other things, foreign research activity. Those concerns prompted Emory University, and later, federal law enforcement, to investigate the matter, which revealed Li’s false tax returns.

Xiao-Jiang Li, 63, of Atlanta, Georgia, pleaded guilty on May 8, 2020, and was sentenced to one year of probation and ordered to pay restitution in the amount of $35,089. He was also ordered to file lawful income tax returns for the years 2012 through 2018 within the first two months of his probation and fully cooperate with the Examination Division, Internal Revenue Service, in making a complete and accurate determination of all taxes, penalties, and interest that he owes.

The Internal Revenue Service Criminal Investigation, Federal Bureau of Investigation, and Department of Health and Human Services OIG investigated this case.

Assistant U.S. Attorney Samir Kaushal and Department of Justice National Security Division Trial Attorney Matthew J. McKenzie 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.

On May 8, 2020, Dr. Xiao-Jiang Li, 63, of Atlanta, Georgia, pleaded guilty to a criminal information charging him with filing a false tax return and has been sentenced by a U.S. District Judge on the same day.  Dr. Li, a former Emory University professor and Chinese Thousand Talents Program participant, worked overseas at Chinese Universities and did not report any of his foreign income on his federal tax returns.

“The Department of Justice remains vigilant over programs such as the Thousand Talents Program that recruits professors and researchers to work for China,” said Assistant Attorney General for National Security John C. Demers.  “In this case Li was caught in his lack of transparency.  We are grateful for the work our partners have done to bring light to this case.”

“This defendant thought that he could live two, separate lives — one here at Emory University and one in China as a Thousand Talents Program participant,” said U.S. Attorney Byung J. “BJay” Pak.  “Eventually, the truth caught up to this defendant, and he is now a convicted felon who is ordered to repay over $35,000 to the IRS.”

"As this case demonstrates, the FBI is committed to working with our partners to prevent individuals from utilizing the Chinese Government’s talent plan programs to commit fraud against the United States government and our universities," said Acting Assistant Director Robert R. Wells of the FBI's Counterintelligence Division. 

"Li's actions demonstrated a flagrant disrespect for the law and all taxpayers," said Chris Hacker, Special Agent in Charge of FBI Atlanta. "The FBI and our federal partners will always pursue individuals like Li, who victimize innocent taxpayers for their own personal gain."

“IRS Criminal Investigation is diligent when it comes to enforcing tax laws directed at those who attempt to defraud our nation’s tax system," said James E. Dorsey, Special Agent in Charge of Atlanta Field Office.  “This sentencing is an example that federal tax crimes will not go unpunished.  Those consequences include being a convicted felon and paying back all the taxes owed including penalties and interest.”  

“Our watchdog agency will continue to aggressively investigate anyone who does not adhere to agency rules regarding the disclosure of foreign funding and affiliations,” said Special Agent in Charge Derrick L. Jackson, U.S. Department of Health and Human Services Office of Inspector General.  “We will continue to work closely with our law enforcement partners to bring these type cases to justice.”

According to the charges and other information presented in court: In late 2011, while employed at Emory University, Li joined the Thousand Talents Program, a Chinese-government talent recruitment initiative that targets professors and researchers to work in China.  Starting in 2012 and continuing until 2018, Li, while still working at Emory University researching, among other things, the use of large animal models to investigate Huntington’s disease, also worked at two Chinese universities — first at the Chinese Academy of Sciences and then at Jinan University — conducting similar large animal model research.  Over those six years, Li earned at least $500,000 in foreign income that he never reported on his federal income tax returns.

Li’s false income tax returns came to light after the National Institutes of Health (NIH) reviewed Li’s NIH research grant applications and became concerned that he had failed to disclose, among other things, foreign research activity.  Those concerns prompted Emory University, and later federal law enforcement, to investigate the matter which revealed Li’s false tax returns.

Li was sentenced to one year of probation on a felony charge and was ordered to pay restitution in the amount of $35,089.  He was also ordered to file lawful income tax returns for the years 2012 through 2018 within the first two months of his probation and fully cooperate with the IRS, in making a complete and accurate determination of all taxes, penalties, and interest that he owes.

The IRS Criminal Investigations, FBI, and Department of Health and Human Services investigated this case.

Assistant U.S. Attorney Samir Kaushal and Department of Justice National Security Division Trial Attorney Matthew J. McKenzie prosecuted the case.

ATLANTA – The Department of Justice (DOJ) filed a Statement of Interest in the Northern District of Georgia to help ensure that uniformed service members serving their country away from home, their family members absent with them, and American citizens living overseas have the opportunity to participate fully in Georgia’s 2020 federal elections.  The Statement of Interest is part of the Department of Justice’s continued efforts to enforce the Uniformed and Overseas Citizens Absentee Voting Act (UOCAVA).

“The right to vote is fundamental to our democracy,” said U.S. Attorney Byung J. Pak.  “My office will continue to devote resources to ensure that this fundamental right is protected for all citizens, especially the men and women serving in our military overseas.”

“Our filing today reflects the Justice Department’s unwavering commitment to ensuring that military and overseas voters are afforded a meaningful opportunity to participate in federal elections,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “We will continue to ensure that the ability of our brave men and women serving in the military and our citizens residing overseas to participate fully in all federal elections is not infringed, and we will also continue to closely monitor challenges to voting practices to ensure that those challenges do not result in a violation of federal law.”

The lawsuit in question, brought by private plaintiffs, involves constitutional challenges to several aspects of Georgia’s upcoming federal primary election, including the Secretary of State’s decision to hold the state’s 2020 primary election on June 9. Among other possible relief relating to the COVID-19 pandemic, the plaintiffs have asked the court to postpone Georgia’s primary election until June 30.

The Statement of Interest explains that UOCAVA requires states to transmit absentee ballots to military and overseas voters who have requested them at least 45 days before any federal election, including federal runoff elections. Under the plaintiffs’ proposed schedule, Georgia would not be able to transmit ballots for any federal runoff election by June 27, the 45-day deadline for the state’s August 11 primary runoff election, which the plaintiffs did not seek to reschedule.  The Statement of Interest does not take a position on whether the court should grant a request to adjust the election calendar, or on the merits of any of the private plaintiffs’ claims. But the Statement notes that if the court does change the election dates, any new election schedule should comply with UOCAVA to avoid the real possibility of disenfranchising military and overseas voters.

UOCAVA requires states to allow uniformed service voters serving away from home (those serving both overseas and within the United States) and their families who are absent with them and American citizens residing overseas to register to vote and to vote absentee for all elections for federal office.  In 2009, Congress enacted the MOVE Act, which made significant amendments to UOCAVA.  Among those changes was a requirement that states transmit absentee ballots to UOCAVA voters who have timely requested ballots, by mail or electronically at the voter’s option, no later than 45 days before federal elections.

More information about UOCAVA and other federal voting rights laws is available on the Department of Justice website at https://www.justice.gov/crt/voting-section.  Complaints about possible violations of the federal voting rights laws may be reported to the Justice Department’s Civil Rights Division at 1-800-253-3931.

Assistant U.S. Attorney Aileen Bell Hughes, Civil Rights Enforcement Coordinator, is handing 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.

WASHINGTON – The Department of Justice today filed a Statement of Interest in a Georgia federal court to help ensure that uniformed service members serving their country away from home, their family members absent with them, and American citizens living overseas have the opportunity to participate fully in Georgia’s 2020 federal elections. The Statement of Interest is part of the Department of Justice’s continued efforts to enforce the Uniformed and Overseas Citizens Absentee Voting Act (UOCAVA).

“Our filing today reflects the Justice Department’s unwavering commitment to ensuring that military and overseas voters are afforded a meaningful opportunity to participate in federal elections,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “We will continue to ensure that the ability of our brave men and women serving in the military and our citizens residing overseas to participate fully in all federal elections is not infringed, and we will also continue to closely monitor challenges to voting practices to ensure that those challenges do not result in a violation of federal law.”

“The right to vote is fundamental to our democracy,” said Byung J. Pak, U.S. Attorney for the Northern District of Georgia. “My office will continue to devote resources to ensure that this fundamental right is protected for all citizens, especially the men and women serving in our military overseas.”

The lawsuit in question, brought by private plaintiffs, involves constitutional challenges to several aspects of Georgia’s upcoming federal primary election, including the Secretary of State’s decision to hold the state’s 2020 primary election on June 9. Among other possible relief relating to the COVID-19 pandemic, the plaintiffs have asked the court to postpone Georgia’s primary election until June 30.

The Statement of Interest explains that UOCAVA requires states to transmit absentee ballots to military and overseas voters who have requested them at least 45 days before any federal election, including federal runoff elections. Under the plaintiffs’ proposed schedule, Georgia would not be able to transmit ballots for any federal runoff election by June 27, the 45-day deadline for the state’s August 11 primary runoff election, which the plaintiffs did not seek to reschedule. The Statement of Interest does not take a position on whether the court should grant a request to adjust the election calendar, or on the merits of any of the private plaintiffs’ claims. But the Statement notes that if the court does change the election dates, any new election schedule should comply with UOCAVA to avoid the real possibility of disenfranchising military and overseas voters.

UOCAVA requires states to allow uniformed service voters serving away from home (those serving both overseas and within the United States) and their families who are absent with them and American citizens residing overseas to register to vote and to vote absentee for all elections for federal office. In 2009, Congress enacted the MOVE Act, which made significant amendments to UOCAVA. Among those changes was a requirement that states transmit absentee ballots to UOCAVA voters who have timely requested ballots, by mail or electronically at the voter’s option, no later than 45 days before federal elections.

More information about UOCAVA and other federal voting rights laws is available on the Department of Justice website at https://www.justice.gov/crt/voting-section. Complaints about possible violations of the federal voting rights laws may be reported to the Justice Department’s Civil Rights Division at 1-800-253-3931.

ATLANTA – The Prosecuting Attorneys’ Council of Georgia (PAC), the overarching judicial branch government agency charged with assisting State of Georgia prosecuting attorneys in their efforts against criminal activity, has joined forces with the Governor’s Office, U.S. Attorneys and Georgia’s Attorney General as the newest member of the Coronavirus (COVID-19) Fraud Task Force.         

“Because our state has begun the process of re-opening does not mean scammers are going to stop,” said Byung J. “BJay” Pak, U.S. Attorney for the Northern District of Georgia.  “We will deploy all available enforcement tools against anyone who tries to take advantage of people during this pandemic.  District Attorney’s from across the state are joining the Task Force and providing us even stronger prosecution partnerships.”

The Executive Director of PAC, Pete Skadalakis, will serve on the task force alongside Georgia’s three U.S. Attorneys, the Attorney General of Georgia and the Executive Counsel for the Governor’s Office. 

“When we announced the COVID-19 Fraud Task Force in early April, we made it clear that any attempts to take advantage of Georgians as we continue to navigate this public health crisis would not be tolerated,” said Governor Brian P. Kemp. “Today, that commitment remains the same. I am grateful Pete Skandalakis and the Prosecuting Attorneys’ Council are joining the task force. I know they will be a great help as we continue to prioritize the safety and well-being of all Georgians.”

“Our office is proud to partner with all three of our U.S. Attorneys, the Governor’s Office and now the Prosecuting Attorneys’ Council of Georgia. Given the extremely high volume of activity in these unprecedented times, this network will allow us to leverage our unique assets and ensure that price gougers and fraudsters are held accountable,” said Attorney General Chris Carr.

“The Prosecuting Attorneys’ Council of Georgia is proud to join in this effort,” said Pete Skandalakis, PAC Executive Director. “Sadly, it is all too common for bad actors to prey on our most vulnerable citizens, especially during times of crisis. We must all work together to protect unsuspecting Georgians against criminal acts of fraud.”

Formed in April 2020, Georgia’s COVID-19 Task Force is aimed at better protecting the citizens of Georgia from criminal fraud arising from the pandemic. The task force enhances communication between partner agencies to more rapidly share information about COVID-19 fraud, while ensuring each fraud complaint is reported to the appropriate prosecuting agency. 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, the U.S. Attorney’s Office for the Southern District of Georgia and the Prosecuting Attorneys’ Council of Georgia. The Executive Director of PAC, Pete Skadalakis, will serve on the task force alongside Georgia’s three U.S. Attorneys, the Attorney General of Georgia and the Executive Counsel for the Governor’s Office.

Georgia’s COVID-19 Task Force warns the public to be on the lookout for potential increased criminal activity related to federal stimulus checks, fake COVID-19 cures, personal protective equipment (PPE) price gouging and fair housing violations. The public can report potential scams to the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or to the NCDF e-mail address disaster@leo.gov. The public can also file complaints with the Attorney General’s Office by calling 800-869-1123 (toll-free) or at www.consumer.ga.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 - Hayat Choudhary, CEO of Atlanta Airport Shuttle Services, Inc., d/b/a Meskerem Restaurant, has pleaded guilty to bribery for paying $20,000 in cash to a City of Atlanta Department of Procurement official to secure a contract at the Hartsfield-Jackson Atlanta International Airport. 

“Pay-to-play bribery schemes cause citizens to lose trust in the integrity of the contracting process,” said U.S. Attorney Byung J. “BJay” Pak.  “Public corruption involving government officials is reprehensible.  Our office remains committed to eliminating corruption in government at all levels, and we want to thank the City of Atlanta for its cooperation in this investigation.”

“Choudhary tried to buy his way around a process that is meant to be fair to all contract applicants,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “His actions erode the public's trust in government and that's why the FBI and our law enforcement partners are determined to prosecute those who would undermine the integrity of how contracts are awarded.”

According to U.S. Attorney Pak, the charges and other information presented in court: The City of Atlanta’s Hartsfield-Jackson Atlanta International Airport (“Atlanta’s airport”) is the principal airport for Georgia and the southeastern United States.  In 2017, Atlanta’s airport – the busiest passenger airport in the world at the time – generated more than $500 million in revenue for the City of Atlanta, including approximately $8.8 million in fees and charges from private ground transportation companies (such as taxicabs, limousines, ridesharing, and hotel and parking lot shuttles).  One such company was Atlanta Airport Shuttle Services, Inc., d/b/a Meskerem Restaurant, owned and operated by the defendant, Hayat Choudhary.

The City of Atlanta’s Department of Procurement was responsible for acquiring all services for Atlanta’s airport.  The Department of Procurement’s “Guiding Principles” commit its personnel to “award contracts that are consistent with the policy, regulations, rules, and laws,” and “without regard for personal gain.” 

On or about May 2, 2017, the Department of Procurement announced that the City of Atlanta sought to enter a contract for a vendor to establish and operate a kitchen/restaurant at the Ground Transportation Building at Atlanta’s airport.  The kitchen/restaurant would serve the large and growing number of taxi, limousine, and rideshare drivers who provided transportation services to passengers traveling to and from Atlanta’s airport. 

The Department of Procurement projected that the kitchen/restaurant at the Ground Transportation Building would generate annual revenue of $200,000, and result in rent payments to the City of Atlanta of $13,000 per year.  The City of Atlanta offered a ten-year term for the kitchen/restaurant contract, with a three-year renewal option.  Choudhary’s company, Atlanta Airport Shuttle Services, Inc., d/b/a Meskerem Restaurant, was one of the bidders for the contract. 

“Official-1” was the Department of Procurement official responsible for overseeing the bidding process and, thus, influenced the awarding of the kitchen/restaurant contract.  After the contract was announced, Choudhary paid a $10,000 bribe to Official-1 to obtain the contract.  After the first bribe payment, Official-1 instructed Choudhary that he had to pay another $10,000 to receive the contract.  Choudhary paid the second $10,000 bribe.  Following Choudhary’s payment of $20,000 to Official-1, the City of Atlanta awarded the contract to Choudhary’s company.

Based on his conduct, Hayat Choudhary, 58, of Lilburn, Georgia, was charged in a Criminal Information with, and pleaded guilty to, conspiracy to commit bribery.

The Federal Bureau of Investigation is investigating this case.

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 – As the nation adopts measures to slow the spread of COVID-19, many Georgians have lost their jobs and countless more have seen their wages curtailed. These losses have forced many to seek abatements or suspensions of their rent, with reports that nearly one third of Americans were unable to pay their April rent at the beginning of the month.  During this time, predatory practices have been identified and are particularly disturbing as some landlords exploit our current national crisis by sexually harassing people in need of housing.         

“Many landlords responded to these circumstances with understanding and care, trying to work with their tenants to weather the current crisis,” said U.S. Attorney Byung J. “BJay” Pak.  “However, there have been reports of landlords who have responded to requests to defer rent payments with demands for sexual favors and other acts of unwelcome sexual conduct.  Such behavior is despicable, and illegal.”

Sexual harassment in housing includes demands for sex or sexual acts in order to buy, rent, or continue renting a home. It also includes other unwelcome sexual conduct that makes it hard to keep living in or feel comfortable in your home.  The Sexual Harassment in Housing Initiative is an effort to combat sexual harassment in housing led by the Civil Rights Division of the Department of Justice. The goal of the Initiative is to address sexual harassment by landlords, property managers, maintenance workers, loan officers or other people who have control over housing. 

Attorney General William Barr has directed the Department of Justice Civil Rights Division and every U.S. Attorney's Office to devote all necessary resources to investigate reports of housing-related sexual harassment resulting from the current crisis.  To report sexual harassment in housing to the DOJ, we have a toll-free phone number (1-844-380-6178), as well as an email address (fairhousing@usdoj.gov) and webpage.

The U.S. Attorney’s Office for the Northern District of Georgia and the Department of Justice (DOJ) will work with all federal agencies, as well as state, and local officials on reports of housing-related sexual harassment.  We stand ready to take aggressive action against this misconduct whenever it occurs.

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

ATLANTA – The U.S. Attorney’s Office for the Northern District of Georgia, in conjunction with the Federal Bureau of Investigation, reminds citizens the law enforcement mission of the Justice Department to detect, investigate, and prosecute wrongdoing during the COVID-19 crisis continues.  A crucial part of this mission is ensuring all citizens are free from harassment or discrimination because of their ethnicity.   

“All of us in law enforcement are committed to the safety of citizens amidst this crisis.  Every citizen without distinction,” said U.S. Attorney Byung J. “BJay” Pak.  “However, harassing people based on their real or perceived race or ethnicity is unacceptable and we will prosecute hate crimes and anti-discrimination violations to the fullest extent of the law.”

“During the COVID-19 pandemic, we want to remind everyone that any violent criminal act against any person because of their race, ethnicity or national origin is a hate crime,” said Special Agent in Charge Chris Hacker, of the FBI Atlanta field office. “This includes violence toward Asian Americans or individuals from East Asian countries. The FBI will use all authority granted to us by federal law to investigate and hold those who commit violent acts accountable for their actions.”  

There is a significant disparity between hate crimes that actually occur and those reported to law enforcement. It is critical to report hate crimes not only to show support for the individual(s) directly impacted, but also to send a clear message that the community will not tolerate these kinds of crimes. Reporting also enables law enforcement to fully understand the scope of the problem in a community and assign resources toward preventing and addressing crimes of bias and hate.

Attorney General William Barr and Assistant Attorney General for Civil Rights Eric Dreiband have called upon department prosecutors throughout the country to watch for hate-motivated acts of violence.  If you or someone you know are in immediate danger, please call 911. If you believe you have been the target or victim of a hate crime or other violation of your civil rights, please contact the FBI Atlanta Field Office by calling (770) 216-3000 or submitting a tip online https://www.fbi.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 - Christopher Dobbins, a former employee of a medical device packaging company, has been charged by criminal complaint for conducting a computer intrusion into his former employer’s package shipping system and deleting shipping information.

“This defendant allegedly disrupted the delivery of personal protective equipment in the middle of a global pandemic,” said U.S. Attorney Byung J. “BJay” Pak. “Scarce medical supplies should go to the healthcare workers and hospitals that need them during the pandemic.  The Department of Justice is dedicated to moving quickly on cases like this to bring criminal opportunists to justice and protect the public during these challenging times.”

“The FBI is making it a priority during the worldwide pandemic to make sure crucial supplies are not being disrupted or diverted from the front lines of medical care,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “We are grateful to the medical packaging company for promptly reporting this disruption to their delivery of important medical supplies, so that we could react quickly.”

According to U.S. Attorney Pak, the criminal complaint, and other information presented in court: On March 29, 2020, Christopher Dobbins allegedly conducted a computer intrusion that disrupted and delayed the medical device packaging company’s shipments of personal protective equipment (“PPE”).

While employed at the company, Dobbins had administrator access to the computer systems containing the company’s shipping information. In early March 2020, Dobbins was terminated from his employment at the company, losing his access to the company’s computer systems. On March 26, Dobbins received his final paycheck from the company. Three days later, Dobbins used a fake user account that he had previously created while employed at the company to log into the company’s computer systems.

Once logged in through the fake user account, Dobbins allegedly created a second fake user account and then used that second account to edit approximately 115,581 records and delete approximately 2,371 records. After taking these actions, the complaint alleges, Dobbins deactivated both fake user accounts and logged out of the system. The edits and deletions to the company’s records disrupted the company’s shipping processes, causing delays in the delivery of much-needed PPEs to healthcare providers.

Christopher Dobbins, 40, of Duluth, Georgia, will have his initial appearance before U.S. Magistrate Judge Russell G. Vineyard.  He was charged by criminal complaint on April 15, 2020. 

Members of the public are reminded that the criminal complaint 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.

The Federal Bureau of Investigation is investigating this case. 

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

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 disaster@leo.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 - Rong Sun, a/k/a Vicky Sun made her initial appearance on federal charges of illegally selling an unregistered pesticide, illegally importing the unregistered pesticide, and mailing a prohibited article.  Sun was charged with a criminal complaint filed by the U.S. Attorney’s Office on April 8, 2020.

“The defendant took advantage of the current worldwide crisis to sell an illegal product with the claim that it protects individuals from viruses,” said U.S. Attorney Byung J. “BJay” Pak.  “We will take quick action through the Georgia COVID-19 Task Force to put a stop to criminals preying on the public with Coronavirus-related fraud schemes.”

“In an event of this magnitude, the public needs facts, not fiction, on the best ways to protect themselves from viruses,” said Assistant Attorney General Jeffrey Bossert Clark for the Justice Department’s Environment and Natural Resources Division.  “We must all remain vigilant against unsubstantiated or false claims that products ward off viruses.  Those marketing such illegal products should beware they may end up on the radar of federal investigators, and be vigorously prosecuted.”

“Reliance on fraudulent products may increase the spread of COVID-19 and exacerbate the current public health emergency,” said Environmental Protection Agency (EPA) Assistant Administrator for Enforcement and Compliance Assurance Susan Bodine.  “EPA and our law enforcement partners are working hard to keep these illegal products off the shelves, off the internet, and out of this country. We ask American consumers to help by checking the list of approved products found at epa.gov/coronavirus before making any purchases.”  

“The sale of this product not only violates several federal laws, it also gives people a false hope. During a global crisis, like we are experiencing right now, it is incredibly dangerous and reckless to exploit people’s fear for profit,” said acting Special Agent in Charge Robert Hammer, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI Atlanta, in conjunction with our law enforcement partners, will continue to prioritize our efforts to protect Americans from COVID-19 fraud.”

“The U.S. Postal Inspection Service will pursue those individuals that are illegally utilizing the mail system to defraud victims during this coronavirus pandemic,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division.  “With the collaborative investigative efforts of our law enforcement partners, we remain resolute to pursue and bring to justice any criminals involved in these deceptive schemes.”

According to U.S. Attorney Pak, the charges, and other information presented in court: The defendant allegedly sold an unregistered pesticide, Toamit Virus Shut Out, through eBay, claiming that it would help protect individuals from viruses.  The pesticide was marketed as “Virus Shut Out” and “Stop The Virus.”  As shown below, the eBay listing depicted the removal of viruses by wearing the “Virus Shut Out” and “Stop The Virus” product. 

Additionally, the listing stated that “its main ingredient is ClO2, which is a new generation of widely effective and powerful fungicide recognized internationally at present.  Bacteria and viruses can be lifted up within one meter of the wearer’s body, just like a portable air cleaner with its own protective cover.”  It also stated that “In extraordinary times, access to public places and confined spaces will be protected by one more layer and have one more layer of safety protection effect, thus reducing the risks and probability of infection and transmission.”

The listing further claimed that Toamit is “office and home essential during viral infections reduce transmission risk by 90%.”

The Federal Insecticide, Fungicide and Rodenticide Act, FIFRA, regulates the production, sale, distribution and use of pesticides in the United States.  A pesticide is any substance intended for preventing, destroying, repelling, or mitigating any pest.  The term “pest” includes viruses.  Pesticides are required to be registered with the EPA. Toamit Virus Shut Out was not registered and it is illegal to distribute or sell unregistered pesticides.  In addition, Sun allegedly imported the pesticide from Japan, violating the anti-smuggling law and then sent it via U.S. Postal Service priority mail.

The EPA has taken steps to block importing of Toamit Virus Shut Out and its sale within the United States:  https://www.epa.gov/newsreleases/epa-administrator-wheeler-talks-retailers-and-third-party-marketplace-platforms-discuss and https://www.epa.gov/newsreleases/us-epa-acts-protect-public-unregistered-virus-shut-out-product-imported-honolulu-and.

Rong Sun, a/k/a Vicky Sun, 34, of Fayetteville, Georgia, made her initial appearance before U.S. Magistrate Judge Alan J. Baverman.  Members of the public are reminded that the complaint 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.

The Environmental Protection Agency-Criminal Investigation Division, Homeland Security Investigations, and U.S. Postal Inspection Service are investigating this case.

Assistant U.S. Attorney Christopher J. Huber, Deputy Chief Complex Frauds, and Senior Counsel Krishna Dighe of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division are prosecuting the case.

The public is urged to report suspected fraud schemes related to COVID-19 (the Coronavirus) by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or by e-mailing the NCDF at disaster@leo.gov.

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

A Georgia resident made her initial appearance on federal charges of illegally importing and selling an unregistered pesticide, Toamit Virus Shut Out, through eBay, claiming that it would help protect individuals from viruses.

Rong Sun, aka Vicky Sun, 34, of Fayetteville, Georgia, was charged with a criminal complaint filed by the U.S. Attorney’s Office on April 8, 2020, and made her initial appearance today before U.S. Magistrate Judge Alan J. Baverman.

“In an event of this magnitude, the public needs facts, not fiction, on the best ways to protect themselves from viruses,” said Assistant Attorney General Jeffrey Bossert Clark for the Justice Department’s Environment and Natural Resources Division.  “We must all remain vigilant against unsubstantiated or false claims that products ward off viruses.  Those marketing such illegal products should beware they may end up on the radar of federal investigators, and be vigorously prosecuted.”

“The defendant took advantage of the current worldwide crisis to sell an illegal product with the claim that it protects individuals from viruses,” said U.S. Attorney Byung J. “BJay” Pak of the Northern District of Georgia.  “We will take quick action through the Georgia COVID-19 Task Force to put a stop to criminals preying on the public with Coronavirus-related fraud schemes.”

“Reliance on fraudulent products may increase the spread of COVID-19 and exacerbate the current public health emergency,” said Environmental Protection Agency (EPA) Assistant Administrator for Enforcement and Compliance Assurance Susan Bodine.  “EPA and our law enforcement partners are working hard to keep these illegal products off the shelves, off the internet, and out of this country. We ask American consumers to help by checking the list of approved products found at epa.gov/coronavirus before making any purchases.” 

“The sale of this product not only violates several federal laws, it also gives people a false hope.  During a global crisis, like we are experiencing right now, it is incredibly dangerous and reckless to exploit people’s fear for profit,” said U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) acting Special Agent in Charge Robert Hammer, who oversees operations in Georgia and Alabama.  “HSI Atlanta, in conjunction with our law enforcement partners, will continue to prioritize our efforts to protect Americans from COVID-19 fraud.”

“The U.S. Postal Inspection Service will pursue those individuals that are illegally utilizing the mail system to defraud victims during this coronavirus pandemic,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division.  “With the collaborative investigative efforts of our law enforcement partners, we remain resolute to pursue and bring to justice any criminals involved in these deceptive schemes.”

According to the charges, the defendant sold an unregistered pesticide, Toamit Virus Shut Out, through eBay, claiming that it would help protect individuals from viruses.  The pesticide was marketed as “Virus Shut Out” and “Stop The Virus.” 

Additionally, the listing stated that “its main ingredient is ClO2, which is a new generation of widely effective and powerful fungicide recognized internationally at present.  Bacteria and viruses can be lifted up within one meter of the wearer’s body, just like a portable air cleaner with its own protective cover.”  It also stated that “In extraordinary times, access to public places and confined spaces will be protected by one more layer and have one more layer of safety protection effect, thus reducing the risks and probability of infection and transmission.”

The listing further claimed that Toamit is “office and home essential during viral infections reduce transmission risk by 90%.”

The Federal Insecticide, Fungicide and Rodenticide Act, FIFRA, regulates the production, sale, distribution and use of pesticides in the United States.  A pesticide is any substance intended for preventing, destroying, repelling, or mitigating any pest.  The term “pest” includes viruses.  Pesticides are required to be registered with the EPA. Toamit Virus Shut Out was not registered and it is illegal to distribute or sell unregistered pesticides.  In addition, Sun allegedly imported the pesticide from Japan, violating the anti-smuggling law and then sent it via U.S. Postal Service priority mail.

The EPA has taken steps to block importing of Toamit Virus Shut Out and its sale within the United States:  https://www.epa.gov/newsreleases/epa-administrator-wheeler-talks-retailers-and-third-party-marketplace-platforms-discuss and https://www.epa.gov/newsreleases/us-epa-acts-protect-public-unregistered-virus-shut-out-product-imported-honolulu-and.

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

The EPA-Criminal Investigation Division, HSI, and U.S. Postal Inspection Service are investigating this case.

Senior Counsel Krishna Dighe of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorney Christopher J. Huber, Deputy Chief Complex Frauds are prosecuting the case.

The public is urged to report suspected fraud schemes related to COVID-19 (the Coronavirus) by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or by e-mailing the NCDF at disaster@leo.gov.

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

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.   

ATLANTA - Georgia’s leading state and federal prosecutors announce a new Coronavirus (COVID-19) Fraud Task Force, aimed at better protecting the citizens of Georgia from criminal fraud arising from the pandemic.

The task force will enhance 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. 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.

“My office is honored to work with this task force in our state’s fight against the spread of COVID-19. As a team, we are committed to putting Georgians first to ensure their safety and well-being as we address this public health state of emergency,” said Governor Brian P. Kemp.

“Thieves never stop searching for ways to take advantage of unsuspecting people,” said Byung J. “BJay” Pak, U.S. Attorney for the Northern District of Georgia.  “Citizens can rest assured that we will bring every asset to bear against fraudsters and those who use this crisis as an opportunity to commit fraud. Also, we encourage anyone who believes they are the victim of a scam, or may have been contacted by someone stating they represent a government agency, to contact this task force immediately.”

“Our office has received hundreds of complaints regarding scams, price gouging and other issues related to the COVID19 pandemic, and we won’t tolerate those who are taking advantage of consumers and interfering with our frontline workers’ response to the crisis,” said Attorney General Chris Carr. “This partnership between the State of Georgia and our U.S. Attorneys will enable us to work together to investigate and, as appropriate, prosecute those who violate our laws. We will leave no stone unturned as we protect all Georgians.”

“Opportunistic criminals are targeting the most vulnerable among us with COVID-19 scams, but our office and law enforcement and prosecutorial partners remain vigilant,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia.  “We continue to detect, investigate and prosecute criminal conduct, and reassure our law-abiding citizens that their safety and security is our primary focus.”

“To all would-be scammers: Anyone who uses this pandemic to defraud Georgians will be investigated and prosecuted to the fullest extent of the law,” said Charlie Peeler, U.S. Attorney for the Middle District of Georgia. “The creation of this unified task force better prepares us to investigate and prosecute criminal acts of fraud related to the COVID-19 pandemic. The law enforcement community is strong in our state. I want to thank our partners at the local, state and federal level dedicated to protecting our citizens from fraudsters.” 

Within each task force member agency, an appointed fraud complaint coordinator will oversee the cases and remain in regular contact with partner law enforcement agencies. The appointed coordinators are: Russell Phillips, Assistant U.S. Attorney, U.S. Attorney’s Office for the Northern District of Georgia , Jim Crane, Assistant U.S. Attorney, U.S. Attorney’s Office for the Middle District of Georgia; David Dove, Executive Counsel, Office of the Governor of Georgia; Anne Infinger, Deputy Attorney General, Consumer Protection Division, Office of the Attorney General of Georgia; and Patrick Schwedler, Assistant U.S. Attorney, U.S. Attorney’s Office for the Southern District of Georgia.

The public is urged to be on the lookout for any of these COVID-19 scams, which can be reported to the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or to the NCDF e-mail address disaster@leo.gov: 

• Treatment scams: Scammers are selling fake vaccines, medicines, and cures for COVID-19.
• Supply scams: Scammers are claiming they have in-demand products, like cleaning and household supplies, and medical supplies, but when an order is placed, the scammer takes the money and never delivers the order.
• Charity scams: Scammers are fraudulently soliciting donations for non-existent charities to help people affected by the COVID-19 crisis. Scammers often use names that are similar to the names of real charities.
• Phishing scams: Scammers, posing as national and global health authorities, such as the World Health Organization (WHO) and the Centers for Disease Control and Prevention (CDC), are sending fake emails and texts to trick the recipient into sharing personal information like account numbers, Social Security numbers, and login IDs and passwords.
• App scams: Scammers are creating COVID-19 related apps that contain malware designed to steal the user’s personal information.
• Provider scams: Scammers pretending to be doctors and hospitals demand payment for COVID-19  treatment allegedly provided to a friend or family member of the victim.
• Investment scams: To promote the sale of stock in certain companies—particularly small companies, about which there is little publicly available information—scammers are making false and misleading claims that those companies can prevent, detect or cure COVID-19.

The Consumer Protection Division (CPD) of the Office of the Attorney General of Georgia has received more than 600 complaints of price gouging or scams related to COVID-19, the majority regarding food, toilet paper, water and hand sanitizer. The public can file complaints with the CPD by calling 800-869-1123 (toll-free) or at www.consumer.ga.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 - Timothy Brown has pleaded not guilty on a federal charge of attempting to travel to the Philippines for the purpose of engaging in illicit sex with a minor.  Brown was stopped at Hartsfield-Jackson Atlanta International Airport as he prepared to board an international flight.

“Brown was minutes away from boarding a flight to travel to the Philippines where he allegedly planned to have sex with minor girls,” said U.S. Attorney Byung J. “BJay” Pak. “Swift work by our law enforcement partners prevented Brown from boarding the plane.”

“A sexual predator’s desire to take the innocence of a minor isn’t bound by international boundaries,” said acting Special Agent in Charge Robert Hammer, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI Atlanta, in conjunction with our overseas offices will continue to work tirelessly to detect and catch these predators before they have a chance to destroy a child’s life.”

According to U.S. Attorney Pak, the charges, and other information presented in court: On February 3, 2020, agents with Homeland Security Investigations (HSI) approached Brown in the international concourse at Hartsfield-Jackson Atlanta International Airport. Brown had just flown in from his hometown, and had tickets to fly to Tokyo, Japan, where he would then transfer flights to proceed to Manila.

Brown consented to a search of his cell phone after being approached by federal law enforcement officials. While searching his phone, investigators found communications between Brown and individuals with whom he was arranging to engage in sex acts with minor-aged girls. During one of the exchanges, Brown allegedly stated that he would condition his payment for sex upon the age of the child and whether she was a virgin.

Timothy Brown, 48, of Wichita, Kanas, pleaded not guilty before U.S. Magistrate Judge Alan J. Baverman.  Brown was indicted by a federal grand jury on March 3, 2020. Members of the public are reminded that the indictment only contains charges.  The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.

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

Assistant U.S. Attorney Paul R. Jones is prosecuting the case.

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

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

ATLANTA – The Department of Justice has announced that it is making $850 million available to help public safety agencies respond to the challenges posed by the outbreak of COVID-19. The Coronavirus Emergency Supplemental Funding program, authorized by the recent stimulus legislation signed by President Trump, will allow eligible state, local and tribal governments to apply immediately for these critical funds. The department is moving quickly to make awards, with the goal of having funds available for drawdown within days of the award.

“Law enforcement resources are stretched thin at every level,” said U.S. Attorney Byung J. “BJay” Pak.  “These funds will be used to directly reinforce critical needs as leaders work to address every contingency.”

“This is an unprecedented moment in our nation’s history and an especially dangerous one for our front-line law enforcement officers, corrections officials, and public safety professionals,” said Office of Justice Programs Principal Deputy Assistant Attorney General Katharine T. Sullivan. “We are grateful to the Congress for making these resources available and for the show of support this program represents.”

The solicitation, posted by the Bureau of Justice Assistance in the Justice Department’s Office of Justice Programs (OJP), will remain open for at least 60 days and be extended as necessary. OJP will fund successful applicants as a top priority on a rolling basis as applications are received. Funds may be used to hire personnel, pay overtime costs, cover protective equipment and supplies, address correctional inmates’ medical needs and defray expenses related to the distribution of resources to hard-hit areas, among other activities. Grant funds may be applied retroactively to Jan. 20, 2020, subject to federal supplanting rules.

Agencies that were eligible for the fiscal year 2019 State and Local Edward Byrne Memorial Justice Assistance Grant Program are candidates for this emergency funding. A complete list of eligible jurisdictions and their allocations can be found at https://bja.ojp.gov/program/fy20-cesf-allocations.

The Coronavirus Emergency Supplemental Funding program can be viewed at https://bja.ojp.gov/funding/opportunities/bja-2020-18553. For more information about the Office of Justice Programs, please visit https://www.ojp.gov/.

The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

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 - Hasher Jallal Taheb, who planned an attack on the White House using weapons and explosives, has pleaded guilty to a charge of attempting to destroy, by fire or an explosive, a building owned by or leased to the United States.

“Taheb hatched a dangerous plan that would have resulted in unimaginable injury,” said U.S. Attorney Byung J. “BJay” Pak.  “We are grateful to community members who noticed his dangerous evolution and alerted law enforcement.  Along with our federal, state and local partners, we will remain vigilant in order to disrupt these types of attacks before they happen.”

“Taheb planned to conduct a terrorist attack on the White House as part of what he claimed was his obligation to engage in jihad,” said Assistant Attorney General for National Security John C. Demers.  “And that was just one of the iconic American landmarks he wanted to target.  Thanks to a tip from a member of the community and the work of the agents, analysts, and prosecutors responsible for this case, the threat posed by the defendant was neutralized and the defendant has admitted his guilt and will now be held accountable for his crime.”

“This plea is the result of a more than year-long intensive investigation by FBI Atlanta's Joint Terrorism Task Force, which was because of a tip from the community,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Our citizens are our most important weapons in fighting terrorism, our eyes and ears in our communities, and why we say to please contact law enforcement if you see or hear something suspicious.”

According to U.S. Attorney Pak, the charges and other information presented in court: In March 2018, a member of the Atlanta community reported concerns about Taheb to a local law enforcement agency, which then contacted the FBI.  The community member specifically alerted law enforcement that Taheb had become radicalized and was making plans to travel abroad.

During an undercover operation conducted by the FBI, federal investigators learned in October 2018 that Taheb planned to travel overseas and that he had applied for a United States passport in July 2018.  The FBI also learned that Taheb had begun planning domestic attacks in the United States as part of his desire to engage in “jihad.”  His targets initially included the White House and the Statue of Liberty.  Later, in December 2018, Taheb broadened his prospective targets in the Washington, D.C. area, to include the Washington Monument, the White House, the Lincoln Memorial, and a synagogue.  

During undercover meetings with Taheb in January 2019, he produced sketches of the White House and described the types of weapons and explosives he wished to use in the attacks, including semi-automatic weapons, improvised explosive devices, an anti-tank weapon, and hand grenades. FBI special agents arrested Taheb on January 16, 2019, after he arrived at a pre-arranged location where he expected to obtain semi-automatic assault rifles, explosive devices, and an anti-tank weapon. 

Sentencing for Hasher Jallal Taheb, 23, of Cumming, Georgia, is scheduled for June 23, 2020, at 9:30 a.m., before U.S. District Judge Mark H. Cohen.

The Federal Bureau of Investigation’s Joint Terrorism Task Force, which includes the U.S. Secret Service, is investigating this case.  The Forsyth County Sheriff Office and Gwinnett County Police Department also provided assistance.

Assistant U.S. Attorneys Ryan K. Buchanan and Matthew Carrico and Trial Attorneys Danielle Rosborough and B. Celeste Corlett of the Department of Justice National Security Division 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.