Northern District of Georgia

ATLANTA – Tyrique F.  Williams, a former officer with Georgia’s Department of Community Supervision, has been charged with accepting bribe payments from a parolee in exchange for allowing the parolee to avoid wearing an ankle monitor, taking polygraph examinations, and attending treatment classes.

“Officers from Georgia’s Department of Community Supervision serve our citizens faithfully and honorably every day,” said U.S. Attorney Byung J. “BJay” Pak.  “Williams, however, allegedly violated both his oath of office as a law enforcement officer and the law when he traded his integrity for money.”

“As citizens, we place our safety and trust in the hands of the law enforcement officers sworn to protect us.  When officers betray that trust, they place the community and their fellow law enforcement officers in danger.  The DeKalb County District Attorney’s Office is committed to working hand in hand with its partners to ensure those that betray their badge are identified and held accountable for their actions,” said DeKalb County District Attorney Sherry Boston.

“The reputation of law enforcement officers is one of their most valuable tools. The alleged illegal actions committed by Mr. Williams are a disservice to our agency and its upstanding employees who take their oath of office to heart. DCS has zero tolerance for misconduct or illegal activity. Despite the situation being unfortunate and regrettable, DCS was happy to assist in the investigation and will continue to partner with investigative authorities to remove the likes of Williams from our noble profession,” said Racheal B. Peters, Director of Public Affairs for the Georgia Department of Community Supervision.

According to U.S. Attorney Pak, the charges, and other information presented in court: the Georgia’s Department of Community Supervision is responsible for the probation and parole supervision of over 200,000 adult felony offenders and certain juvenile offenders.

In the fall of 2014, Williams began working as a probation officer with the Department of Community Supervision. From 2016 to 2018, the Department of Community Supervision managed a parolee (“Parolee”), who had previously served 14 years in prison for a sexual offense. While on parole, the Parolee completed a number of courses and treatment classes and the Parolee never incurred a parole violation.  Nevertheless, once Williams became responsible for the supervision of the Parolee, Williams told the Parolee that additional conditions and restrictions would be placed on the Parolee.

On April 19, 2018, Williams allegedly visited the Parolee’s residence and displayed a hand written note reading in substance: $3,000, no polygraph, no ankle bracelet, no supervision fee, yes or no?  After reading the note, the Parolee told Williams that he would pay him the $3,000.  The Parolee then contacted the Federal Bureau of Investigation (“FBI”) and reported Williams’ extortionate demand.

On April 27, 2018, in a meeting recorded by the FBI, the Parolee met with Williams at the Georgia Department of Community Supervision in Decatur, Georgia. During the meeting, Williams led the Parolee to a secluded area of the building, where the Parolee paid Williams $1,000 in cash.  Williams told the Parolee that in exchange for a second $3,500 bribe payment, Williams would not require the Parolee to wear an ankle monitor or submit to a polygraph examination.

On May 4, 2018, in a meeting recorded by the FBI, the Parolee met with Williams at a fast food restaurant in Stone Mountain, Georgia. In the bathroom of the fast food restaurant, the Parolee paid Williams $3,500 in cash.

Notably, after the Parolee paid the two bribe payments, Williams did not make the Parolee take a polygraph examination, wear an ankle bracelet, or attend any additional treatment classes

Tyrique F. Williams, 28, of Atlanta, has been charged via criminal information with one count of Extortion under the Color of Official Right. Defendants who are charged by a criminal information, typically plead guilty shortly after being arraigned. 

This case is being investigated by the FBI, DeKalb County District Attorney’s Office, and the Georgia’s Department of Community Supervision.

Assistant U.S. Attorneys Jeffrey W. Davis, Chief of the Public Integrity and Special Matters Section, and Leanne M. Marek 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. - Mark Edward Jeffery, a former Georgia Department of Corrections (GDC) officer, who smuggled alcohol, drugs, and contraband cellphones into Hays State Prison, has been sentenced to federal prison for possession with the intent to distribute methamphetamine. 

“Smuggling illegal contraband into a prison jeopardizes the safety of jailers and inmates alike,” said U.S. Attorney Byung J. “BJay” Pak.  “Contraband also fosters criminal activities both inside and outside of prisons.  Correctional officers like Jeffery, who disgrace their badge, can expect to be prosecuted and join the prison population they were eager to accommodate by committing these crimes.”

“Jeffery betrayed the trust placed in him by the Department of Corrections through his illegal and potentially dangerous activity,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The investigation and prosecution of this case shows that we will not tolerate corrupt staff who violate their sworn duties as government employees and jeopardize the safety of their fellow officers.”

“We are pleased to see that justice has been served on this former Officer for his role in jeopardizing our non-negotiable mission of public safety,” said GDC Commissioner Timothy C. Ward.  “Ridding our prisons of corrupt staff and shedding light on those who choose to ignore that mission remains a top priority.”

According to U.S. Attorney Pak, the charges, and other information presented in court: On April 17, 2017, Jeffery began working as a correctional officer at Hays State Prison in Trion, Georgia.  The facility opened in 1990 and currently holds approximately 1,680 male prisoners.

On February 7, 2018, one of Jeffery’s fellow correctional officers observed a large rectangular object, wrapped in black electrical tape, hidden in Jeffery’s beverage container.  The fellow officer notified a supervisor about possible contraband.  Later that day, the prison’s chief of security asked Jeffery to consent to a search of his person and belongings.  Jeffery consented to the search and correctional officers found one brown glass smoking utensil, four cellular phone chargers, four smartphones, two bags containing 190 pills, a plastic bag with methamphetamine, and a water bottle with alcohol.  

Mark Edward Jeffery, 34, of Fairmount, Georgia, was sentenced by Senior U.S. District Judge Harold L. Murphy to five years in prison, to be followed by three years of supervised release, and a $100 special assessment.  A federal grand jury indicted Jeffery, and he pleaded guilty on February 11, 2019 to one count of possession with intent to distribute a controlled substance.

This case was investigated by the Federal Bureau of Investigation and the Georgia Department of Corrections.

Assistant U.S. Attorney C. Brock Brockington prosecuted the case.

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

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

ATLANTA - Quintavious Obie has been sentenced to federal prison for engaging in sex trafficking and witness tampering.  The defendant was originally indicted for sex trafficking in 2018 but continued to harass and intimidate victims and was charged with witness tampering as well.

“Obie lured his victims into prostitution and after he was arrested continued to harass and intimidate them,” said U.S. Attorney Byung J. “BJay” Pak.  “Sex trafficking exploits and traumatizes some of the most vulnerable members of our society.  We are sending a clear message to those seeking to engage in this type of criminal activity: you will be caught and prosecuted.”

“This defendant showed a complete disregard for the women he entrapped into sex trafficking,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI and our law enforcement partners made this case a priority and were successful in getting Obie off our community’s streets, despite his efforts to circumvent the charges against him by intimidating his victims.”

“Human trafficking is a form of modern-day slavery, and the threats and abuse inflicted on these particular victims only adds to the heinous nature of the crime,” said Special Agent in Charge of Homeland Security Investigations Atlanta Nick S. Annan. “HSI is committed to working with our law enforcement partners to find and prosecute criminal traffickers while ensuring the victims of this terrible crime are rescued and get the care they need.”

According to U.S. Attorney Pak, the charges and other information presented in court:  Quintavious Obie lured young women from rural areas in South Carolina to Atlanta with promises of a lucrative lifestyle.  However, once they arrived in Atlanta, they were forced into a life of prostitution through mental and physical abuse. The victims were forced to engage in prostitution and to turn over to Obie all of the money they received.  His victims were not allowed to go anywhere without his knowledge nor see anyone unless they were a paying client.  Any deviation from his rules brought severe punishment.

Obie was indicted for sex trafficking in January 2018.  However, this did not stop Obie from continuing his pattern of harassment and victimization.  Specifically, from January 2018 to April 2018, Obie had others call and text his victims to have them retract their statements to law enforcement in an effort have his case dismissed.  As a result, he was also charged with witness tampering.

Quintavious Obie, a/k/a Swayzii, a/k/a Shank, 32, of Atlanta, Georgia, was sentenced by U.S. District Judge Orinda D. Evans to 21 years, six months in prison to be followed by 10 years of supervised release, a special assessment of $300, and ordered to pay restitution in the amount of $7,500 per victim.  Obie was convicted on these charges after pleading guilty on January 7, 2019.

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

Assistant U.S. Attorneys Jennifer Keen and Stephanie Gabay-Smith 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 –Bryan McElroy and Angela McBride have been arraigned in separate federal cases on charges of attempting to file fraudulent, retaliatory liens against federal government officials.

“Attempting to obstruct the IRS’s tax assessment and collection efforts is a federal crime,” said U.S. Attorney Byung J. “BJay” Pak.  “Individuals who file false liens against government officials in retaliation for the IRS’s activities, or interfere with the operations of the IRS, will be prosecuted.”

“TIGTA’s statutory mission includes investigating individuals who are alleged to pose a threat to IRS employees engaged in the lawful collection of taxes,” said J. Russell George, Treasury Inspector General for Tax Administration.  “Attempts to intimidate or retaliate against IRS employees engaged in the performance of their official duties will not be tolerated.  We appreciate the efforts of the U.S. Attorney’s Office to work with TIGTA to protect the integrity of tax administration.”

According to U.S. Attorney Pak, the charges, and other information presented in court: In April 2014, the IRS issued a notice of intent to levy on McElroy regarding his unpaid taxes. In response, McElroy allegedly filed a false lien with the Fayette County clerk of court, listing U.S. Treasury Secretary Jacob Lew, Treasury Inspector General Eric Thorson, and IRS Commissioner John Koskinen as debtors, and responsible parties for his financial liabilities. After the IRS notified McElroy that a frivolous position taken on any filing with the IRS could result in the assertion of a $5,000 penalty, he filed another lien, again naming the same government officials as responsible parties for his debts.

McBride is charged with a similar offense.  After McBride allegedly 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 within 30 days.  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 IRS Commissioner John Koskinen.   

Bryan McElroy, 57, of Newnan, Georgia, and Angela McBride, 57, of Ellenwood, Georgia, were arraigned before U.S. Magistrate Judge Linda T. Walker.  McBride and McElroy were each charged by a federal grand jury in separate indictments on April 16, 2019.  McElroy is charged with six counts of attempting to file a false and retaliatory lien against a government official.  McBride is charged with one count of the same.

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

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

Assistant U.S. Attorneys Irina Dutcher and Annalise Peters are prosecuting the cases against McElroy and McBride.

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 tax deadline quickly approaching for individual taxpayers, it is important to be aware of tax scams as well as the importance of being 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 use tax fraud schemes to steal from tax-payers,” said U.S. Attorney Byung J. “BJay” Pak.  “Be honest and truthful in your tax filings, and beware of others who look to take advantage of you and the tax system.”

“We have IRS Special Agents located here in Georgia working around the clock to uncover, stop and work with the U.S. Attorney’s Office in prosecuting tax crimes. With the filing season coming to an end, it’s important that the public be aware of various tax schemes and report the scheme to either the IRS or their local police department,” said Thomas J. Holloman, Special Agent in Charge of IRS-CI, Atlanta Field Office.

The U.S. Attorney’s Office for the Northern District of Georgia, along with agents of IRS-Criminal Investigation and other law enforcement partners, is actively engaged in investigating and prosecuting tax fraud as well as combatting those criminals willing to steal identities and commit tax fraud on the unsuspecting public. Over the past year, multiple tax investigations were successfully resolved, with approximately 13 convicted individuals sentenced related to fraudulent tax schemes since May of 2018. The following are highlights of some of those cases:

Lakeisha Stone

On December 10, 2018, Lakeisha Stone of Fairburn, Georgia was sentenced to four years, two months in federal prison, to be followed by three years of supervised release and ordered to pay restitution of $392,174 to the IRS for her role in a scheme to defraud the IRS. Stone used two other individuals as nominee names to obtain fraudulent Electronic Filing Identifying Numbers and Preparer Tax Identification Numbers to prepare false income tax returns. Stone also stole the identities of some of her tax customers and cashed stolen treasury checks. Stone used the Atlanta-based businesses Taxes R’ Us, Taxs R’ Us, and Tax Tyme to commit her fraudulent activity.

Stephanie Parker

On November 15, 2018, Stephanie Parker of Atlanta, Georgia was sentenced to two years in federal prison, to be followed by one year of supervised release and ordered to pay $5,964 in restitution to the IRS for a scheme to use stolen identities to defraud the IRS. Parker was an employee of the IRS and worked in the IRS office located in Chamblee, Georgia. From September of 2012 through April of 2013, Parker accessed taxpayers’ personal identifying information (“PII”) while employed as a customer service representative for the IRS.  Parker took those taxpayers’ PII and filed fraudulent tax returns with the IRS in those names. 

Joseph Racine & Arnouse Merlien

On November 8, 2018, Joseph Racine, of Boynton Beach, Florida, was sentenced to three years, four months in federal prison, to be followed by three years of supervised release and Arnouse Merlien, also of Boynton Beach, was sentenced to three years in federal prison, followed by three years of supervised release and both were ordered to pay $3,854,915 in restitution to the IRS for conspiracy to defraud the IRS. Racine was the owner of JSR Westend Tax Services, located in Atlanta, and JSR Tax Services, located in Greenacres, Florida.  Merlien was the office manager of JSR Tax Services in Florida. The IRS-CI investigation revealed that Racine was filing fraudulent returns involving multiple credits and deductions, including the fuel tax credit, refundable education credit, and unreimbursed employee business expenses.  Racine requested refunds on 99 percent of the returns, a rate significantly higher than the average over the same years.  In March 2017, IRS-CI determined that JSR Tax Services in Florida, where Merlien primarily worked, was filing federal tax returns displaying the same patterns of fraud as those prepared at JSR Westend Tax Services in Atlanta. The investigation revealed that Racine and Merlien engaged in this scheme to increase the amount of money they could charge their clients for preparing their returns. 

Michael Jon Kell

On October 16, 2018, Michael Jon Kell of Powder Springs, Georgia was sentenced to one year, six months in federal prison, followed by one year of probation and ordered to pay $321,878 in restitution to the IRS for a twenty year tax scheme to funnel millions of dollars in assets through a church he created in order to evade filing federal tax returns.  Dr. Kell developed numerous patented technologies and worked as a consultant, which generated millions of dollars in income over the years. In an attempt to hide this income, he founded and claimed to be the “pastor” of the First Meliorite Church, which he said was a branch of the Universal Life Church. Dr. Kell directed his substantial income and assets into bank accounts belonging to the church—all of which were under Dr. Kell’s exclusive control. He used these accounts to cover all of his personal expenses—including overseas vacations, dining out, high-end clothing purchases, online dating services, and private school tuition for his children. Dr. Kell also transferred ownership of his multi-million dollar residence in Vinings several times over the years to various entities he created and controlled, in an effort to protect the property from creditors, including the IRS.

Hanh Tran

On April 8, 2019, Hanh Tran of Lilburn, Georgia was sentenced to ten months of home confinement, to be followed by twelve months of supervised release and ordered to pay $124,812 in restitution to the IRS for willfully filing a false tax return with the IRS. For the tax years 2010 through 2014, Tran underreported his total income causing an underreporting of his tax liability of $124,812. Hanh Tran is the C.E.O. of Glamour Salon & Spa, Inc. located in Marietta, Georgia.

Go to https://www.irs.gov/newsroom/irs-concludes-dirty-dozen-list-of-tax-scams-for-2019-agency-encourages-taxpayers-to-remain-vigilant-year-round for more information on the Dirty Dozen for the 2019 filing season.

For Atlanta Field Office IRS-Criminal Investigation interview requests or questions, please contact their Public Information Officer at Joseph.Ziegler@ci.irs.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 – Local tax business owner Thomas Holmes has been arraigned on federal charges of willfully preparing and filing federal income tax returns that fraudulently claimed hundreds of thousands of dollars in tax refunds. 

“Citizens expect tax preparers like Holmes to accurately prepare and file their returns,” said U.S. Attorney Byung J. “BJay” Pak.  “His alleged abuse of the tax system for financial gain undermines public confidence in the system.  We have dedicated resources to combat this kind of theft, and we will aggressively prosecute those who believe they can file false tax returns, thereby cheating everyone else.”

“Holmes took advantage of his clients’ trust and lined his pockets with fraudulent tax refunds. If you use a return preparer to file your taxes, ask to review the tax return before it is filed with the IRS and ask for a copy of the filed tax return. If you become suspicious that your return preparer isn’t filing the correct information, report that return preparer to the IRS,” said Steve S. Bahhur, Acting Assistant Special Agent in Charge of IRS-CI, Atlanta Field Office.

According to U.S. Attorney Pak, the charges, and other information presented in court:  Thomas Holmes ran a tax preparation business in Austell, Georgia called TKO Tax Pros.  Between 2013 and 2017, Holmes, through TKO Tax Pros, prepared and filed thousands of federal income tax returns on behalf of clients.  The indictment alleges that on many of those returns, Holmes willfully listed false information, such as false Schedule C business losses and false Schedule A itemized deductions, causing the tax returns to claim thousands of dollars in refunds that taxpayers were not entitled to.  When the Internal Revenue Service (“IRS”) issued refunds to these taxpayers, Holmes allegedly kept a portion of the fraudulent refunds for himself and paid the balance to his clients.  During the relevant time period, Holmes made hundreds of thousands of dollars for his tax preparation services. 

Thomas Holmes, 41, of Austell, Georgia, was arraigned before U.S. Magistrate Judge Janet F. King. He was indicted by a federal grand jury on April 10, 2019 on 22 counts of willfully preparing and filing fraudulent federal income tax returns on behalf of eight individual taxpayers. 

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 Internal Revenue Service Criminal Investigation.

Assistant U.S. Attorney Annalise Peters 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 – The U.S. Attorney’s Office for the Northern District of Georgia joins the Department of Justice in observance of National Crime Victims’ Rights Week, April 7-13, 2019.  

“Victims of crime deserve justice. This Department works every day to help them recover and to find, prosecute, and convict those who have done them harm,” said Attorney General William P. Barr. “During this National Crime Victims’ Rights Week, we pause to remember the millions of Americans who have been victims of crime and we thank public servants who have served them in especially heroic ways. This week the men and women of the Department recommit ourselves once again to ensuring that crime victims continue to have a voice in our legal system, to securing justice for them, and to preventing other Americans from suffering what they have endured.”

“During National Crime Victim’s Rights Week we honor all victims of a crime, even those that many people view as victimless such as drug trafficking crimes,” said U.S. Attorney Byung J. “BJay” Pak.  “This crime is far from victimless. We have lost thousands of fellow Georgians to drug overdoses – particularly from opioids.  Moreover, an untold number of our families, friends or neighbors and their loved ones in the form of financial and emotional toll suffer from the destructive cycle of drug addiction.”

Each year in April, the Department of Justice and U.S. Attorneys’ offices observe National Crime Victims’ Rights Week nationwide by taking time to honor victims of crime and those who advocate on their behalf. In addition, the Justice Department and U.S. Attorneys’ offices organize events to honor the victims and advocates, as well as bring awareness to services available to victims of crime. This year’s observance takes place April 7-13, with the theme: Honoring Our Past. Creating Hope for the Future.

The U.S. Department of Justice will host the Office for Victims of Crime’s annual National Crime Victims’ Service Awards Ceremony in Washington, D.C. on April 12, 2019, to honor outstanding individuals and programs that serve victims of crime.

The Department of Justice’s Office for Victims of Crime, within the Office of Justice Programs, leads communities across the country in observing National Crime Victims’ Rights Week each year. President Ronald Reagan proclaimed the first National Crime Victims’ Rights Week in 1981 to bring greater sensitivity to the needs and rights of victims of crime.

The Office of Justice Programs provides innovative leadership to federal, state, local, and tribal justice systems, by disseminating state-of-the art knowledge and practices across America, and providing grants for the implementation of these crime-fighting strategies. Because most of the responsibility for crime control and prevention falls to law enforcement officers in states, cities, and neighborhoods, the federal government can be effective in these areas only to the extent that it can enter into partnerships with these officers. More information about the Office of Justice Programs and its components can be found at www.ojp.gov. More information about Crime Victim’s Rights Week can be found at https://ovc.ncjrs.gov/ncvrw/. You may also contact the U.S. Attorney’s Office for the Northern District of Georgia Victim Witness Program at (404) 581-6000.

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

ATLANTA - Anthony Rondel Blair, Jason Arias, Daniel Newton, David Lomba Barros, Angelica Dominique Cuyugan Tuzon, Shondra Vernon, Michelle Rosa, and Madison Renee Kelleher have been indicted for their roles in a criminal network that imported cocaine into the United States from Costa Rica and laundered the proceeds. 

“These defendants allegedly imported dozens of multi-kilogram cocaine shipments within food cans through several U.S. airports including Hartsfield Jackson Atlanta International Airport, and the Charlotte, Raleigh, and Miami airports,” said U.S. Attorney Byung J. “BJay” Pak.  “Through the combined efforts of our law enforcement partners, this network has been disrupted and its members will be brought to justice.  Even in the midst of the nation’s opioid epidemic, we are reminded that cocaine importation and distribution remains a national problem and a priority of this office.”

Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division stated, “This criminal network posed a clear and present danger to the safety of the citizens in this country and abroad. Their removal makes the affected communities safer. This successful investigation illustrates how success can be achieved through law enforcement collaboration between federal, state and local law enforcement and the subsequent prosecution by the U.S. Attorney’s Office.”

“Identifying and intercepting transnational drug traffickers is one of Homeland Security Investigations’ highest priorities to protect the public from the serious harm criminals inflict without any regard for the violence and public health damage they cause,” said Special Agent in Charge of HSI Atlanta Nick S. Annan. ”The scale of this case illustrates the lengths to which criminal organizations will go as well as the interagency coordination that exists between federal, state and local law enforcement partners to identify and stop them.”

“The mission of CBP here in the Southeast and across the country is to safeguard America’s borders,” said Don Yando, Atlanta Director of CBP Field Operations.  “This is yet another example of how our multi-agency partnerships and collaboration support CBP's mission of protecting the American public.  We are proud to continue the work of uncovering and dismantling these types of transnational criminal organizations.”

“We will not allow our airport to be used as a hub for the spread of illegal narcotics to our communities,” said Atlanta Police Chief Erika Shields. “I commend our officers for their efforts on the ground, and to the U.S. Attorney’s Office for aggressively pursuing these cases.”

According to U.S. Attorney Pak, the charges, and other information presented in court:  the indictment alleges that Blair organized groups of individuals to fly to Costa Rica from Atlanta.  While in Costa Rica, Arias met with some of the conspirators and provided each with approximately four kilograms of cocaine hidden inside sealed food cans and concealed within the travelers’ checked luggage.  Once the Atlanta-based travelers returned to the United States, they delivered the cans to Blair who prepared the cocaine for distribution in the Atlanta area and elsewhere.  The network also had been operating in Charlotte and Boston.  

Law enforcement documented over 90 separate trips for this group, and it is estimated that the conspiracy imported over 375 kilograms of cocaine into the United States using this smuggling technique.

Anthony Rondel Blair, 40, Shondra Vernon and a/k/a Frenchie, 30, both of Atlanta, Georgia, Michelle Rosa, 36, of Jonesboro, Georgia, Jason Arias, 35, and Daniel Newton, a/k/a Russia, 29, both of Charlotte, North Carolina, David Lomba Barros, 32, and Madison Renee Kelleher, 27, of Boston, Massachusetts, and Angelica Dominique Cuyugan Tuzon, 25, of Reston, Virginia, were indicted by a federal grand jury on March 27, 2019.   Vernon and Rosa were arraigned before U.S. Magistrate Judge Janet F. King.  Blair is scheduled to be arraigned on April 12, 2019, also before Judge King.  The remaining defendants appeared in federal courts in Charlotte, Boston, and Alexandria, Virginia.

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

This case is being investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the DEA, U.S. Customs and Border Protection, and the Atlanta Police Department.

Assistant U.S. Attorney Ryan M. Christian is prosecuting the case.

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

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

ATLANTA – Mehboob Mansurali Charania has been sentenced for his involvement in a transnational criminal organization that victimized over 340 people in the United States through a fraudulent India-based call-center scheme, resulting in over $200,000 in losses.   

“The phone scheme Charania was a part of used lies, intimidation, and fear to extort or outright steal from unsuspecting citizens,” said U.S. Attorney Byung J. “BJay” Pak.  “Our law enforcement partners regularly uncover thieves who believe they found a new way to steal.  As Charania learned in this case though, law enforcement was well aware of these schemes.”

“Victimizing taxpayers by impersonating IRS employees is a serious crime,” said J. Russell George, Treasury Inspector General for Tax Administration.  “Since October 2013, more than 15,000 victims have suffered over $75 million in losses to the perpetrators of telephone scammers who impersonate IRS employees.  TIGTA is committed to ensuring that those involved in the impersonation of IRS employees are prosecuted to the fullest extent of the law.  Our investigations have identified 140 scammers who, like Mr. Charania, have or are, facing federal criminal proceedings.”

According to U.S. Attorney Pak, the charges, and other information presented in court: The defendant took part in a sophisticated scheme organized in India, that included a network of call centers.  Call center operators called U.S. residents over the telephone and misled the potential victims into sending money utilizing a number of different confidence scams. 

The scams included impersonation scams where the callers pretended to be Internal Revenue Service (“IRS”) employees demanding payment of taxes and fees.  Other scams included grant scams where callers directed victims to pay upfront fees for fictitious grants, student loan scams where callers threatened victims if they did not pay fictitious taxes and fees associated with student loans, and hacking scams where callers would gain remote access to the victim’s computer, lock the victim out of the computer, and deny access to the computer until the victim provided payment. 

If the victims agreed to pay, the call centers would have the victims send the funds to the attention of fictitious names used by Charania through wire transfers, including through MoneyGram and Western Union.  Charania also would conduct hawala money transfers by transferring proceeds to bank accounts as directed by an individual in India.

Charania, a citizen of India who moved to Tucker, Georgia in 2014, has been sentenced to one year, four months in prison to be followed by three years supervised release, and ordered to pay a $100 special assessment, and pay restitution of $203,958.02 to victims of the scheme.  Charania was convicted on January 17, 2019, after he pleaded guilty to engaging in an unlicensed money transfer business.

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

Assistant U.S Attorney Jolee Porter prosecuted the case.

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

ATLANTA - Kwamaine Jerell Ford has pleaded guilty to logging into Apple accounts belonging to high-profile professional athletes and musicians without authorization and stealing credit card information from several of those victims.

“Ford tricked his victims into providing their Apple account passwords and stole sensitive, personal information from the accounts,” said U.S. Attorney Byung J. “BJay” Pak. “After stealing credit card numbers belonging to several professional athletes, he brazenly spent thousands of dollars on personal expenses charged to the athletes’ accounts.”

“The high profile victims in this case are an example that no matter who you are, hackers like Ford are trying to get your personal information,” said Chris Hacker Special Agent in Charge of FBI Atlanta. “This case demonstrates the need to be careful in protecting personal information and passwords, especially in response to suspicious e-mails. Hopefully this is a lesson for everyone, not just the victims in this case.”

According to U.S. Attorney Pak, the charges and other information presented in court: Beginning in at least March 2015, Ford obtained login credentials for Apple accounts belonging to victims primarily through a phishing scheme, which is a scheme in which the perpetrator sends a message that purports to be from a legitimate source. Ford primarily targeted college and professional athletes, including NBA and NFL players, and rappers in his scheme. Ford sent thousands of phishing emails to his intended victims from email accounts he set up to spoof legitimate Apple customer service accounts. Ford, posing as an Apple customer support representative, requested that the victims send him their username and password or answers to security challenge questions, which Ford claimed was needed either to reset their Apple accounts or to access videos that individuals were purportedly trying to send the victims. Dozens of victims provided their login credentials based on the phishing scheme.

After obtaining the victims’ login credentials, Ford logged into their Apple accounts and attempted to take over the accounts. Specifically, he attempted to reset the account password, change the contact email account to an email address he controlled, and alter the security challenge questions. As a result, the victims could not log into their own accounts unless they contacted Apple by phone and proved their identity. Apple records showed hundreds of unauthorized logins to victim Apple accounts.

After gaining control of the victims’ accounts, Ford found credit card information belonging to several of the victims. Ford then used the stolen credit card numbers to pay for thousands of dollars in air travel, hotel stays, other travel expenses, furniture, and money transfers to online payment accounts under his control.

On April 17, 2018, Kwamaine Jerell Ford, 27, of Dacula, Georgia, was indicted on six counts each of wire fraud, computer fraud, access device fraud, and aggravated identity theft. He pleaded guilty to one count of computer fraud and one count of aggravated identity theft.  Sentencing is scheduled for June 24, 2019, at 10:30 before U.S. District Judge Timothy C. Batten Sr.

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

Assistant U.S. Attorney Nathan P. Kitchens, Deputy Chief of the Cyber and Intellectual Property Crimes Section, is prosecuting the case. Former Assistant U.S. Attorney Vivek Kothari investigated the case prior to the indictment.

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 – Marlon Matthew Pittman, the last of three defendants operating a cocaine smuggling and money-laundering ring, has been sentenced to federal prison. The men routinely shipped their drugs from Puerto Rico to Atlanta through the U.S. Mail hidden inside children’s toys and cans of powdered milk, and laundered their drug money using a car rental company and an elaborate scheme involving hundreds of money orders. All three men had prior federal drug trafficking convictions. Pittman attempted to flee the country while awaiting trial but was arrested trying to board a flight to Ethiopia using a fake identity.

“These drug smugglers endangered countless people from Puerto Rico to Atlanta and beyond,” said U.S. Attorney Byung J. “BJay” Pak. “Ironically, it was the money laundering scheme they created to hide their criminal enterprise that first caught the attention of investigators and led to their downfall. Criminals regularly believe they have developed a new way to evade detection. However, sophisticated abilities developed by our law enforcement partners help identify the crooks, leading to a successful prosecution like this one.”

Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division commented, “Drug distribution networks often take extreme measures in order to hide the poison they peddle, as was the case in this investigation. This is a perfect illustration of the battle DEA and its law enforcement counterparts face when trying to prevent dangerous drugs from hitting the streets of our communities. As a result of DEA’s unwavering commitment and through the strength of its partnerships, these defendants will spend well-deserved time in prison.”

“This sentencing brings to close a lengthy investigation into a complex money laundering scheme in which defendants illegally funneled narcotic proceeds in an effort to avoid detection by law enforcement. By following the money trail, Postal Inspectors were able to identify transactions that were utilized in furtherance of their drug smuggling operation,” said David M. McGinnis, U.S. Postal Inspector in Charge of the Charlotte Division. “The Postal Inspection Service is committed to working with our law enforcement partners to investigate and seek the prosecution of those who attempt to conceal and launder illicit proceeds.”

According to U.S. Attorney Pak, the charges, and other information presented in court: This multi-agency investigation began when federal agents noticed suspicious financial activity by an Atlanta-based car rental business and an unusual pattern of money order purchases dating back to 2012. Realizing the activity was money laundering, they began a series of federally authorized wiretaps on cellular phones used by the owner of the car rental business—Marlon Pittman—and members of his drug trafficking operation (“DTO”) in Atlanta and Puerto Rico.

The general scheme of the DTO was that Vladimir Collozo-Florido imported loads of more than 200 kilograms of cocaine at a time into Puerto Rico using cargo ships from Colombia. He then sent the cocaine through the U.S. Mail to Pittman in Atlanta, usually in parcels containing up to 1.5 kilograms at a time. In order to avoid detection, if the parcels were inspected, the cocaine was hidden inside seemingly innocent items such as children’s toys, cans of powdered milk, or cans of beans. Carlos Gonzalez-Catala was responsible for packaging the drugs using a can sealing machine and other disguising materials, and then mailing the packages. Pittman used a number of associates in Atlanta to receive the parcels on his behalf using fake names, and he would sell the cocaine to customers in Atlanta, South Carolina, Maryland, and New York.

Pittman initially transferred the proceeds of the drug sales back to Puerto Rico by carrying large quantities of cash – including one instance of $90,000 in a duffle bag – as carryon luggage on commercial flights. But to conceal the scheme and deal with increased amounts of cash, he set up a car rental business and funneled the money through the business’s bank accounts. He also purchased money orders in small increments, visiting multiple post offices on the same day, in an effort to avoid detection. He then mailed the money orders to Puerto Rico, where they were cashed by a network of associates.

Collazo-Florido and Gonzalez-Catala pleaded guilty first, with Collazo-Florido ordered to forfeit $1,000,000 as part of his sentence. While Pittman was awaiting trial, he was actually planning to flee the country.  He was ultimately caught as he was passing through a TSA checkpoint at an airport to board a flight overseas, using an international travel document in a fake name he obtained by bribing foreign government officials. He also had in his possession eleven pounds of MDMA tablets hidden inside children’s Flinstones vitamins bottles. Upon searching his cell phone, agents realized Pittman had been on a crime spree on his way out of the country, trying to obtain money to take with him through fraudulent loans and fraudulent tax refunds, and also emptying his family’s food stamps account.

Members of the operation who have been sentenced by U.S. District Judge Amy Totenberg are:

• Marlon Matthew Pittman, 45, of Mableton, Georgia, was sentenced to 17 years in prison, to be followed by eight years of supervised release, and ordered to forfeit the residence he purchased with drug money. Pittman pleaded guilty to conspiracy to possess with the intent to distribute cocaine and conspiracy to commit money laundering on August 27, 2018.

• Vladimir Collazo-Florido, 44, of Carolina, Puerto Rico, was sentenced to 11 years and four months in prison, to be followed by eight years of supervised release, and ordered to forfeit $1,000,000. Collazo-Florido pleaded guilty to conspiracy to possess with the intent to distribute cocaine on November 13, 2017, and was sentenced on March 8, 2018.

• Carlos Gonzalez-Catala, 42, of Guaynabo, Puerto Rico, was sentenced to three years and three months in prison, to be followed by three years of supervised release. Gonzalez-Catala pleaded guilty to conspiracy to possess with intent to distribute cocaine on November 13, 2017, and was sentenced on February 8, 2018.

This case was investigated by the Drug Enforcement Administration and U.S. Postal Inspection Service.

Assistant U.S. Attorney Garrett L. Bradford, Deputy Chief, Narcotics and Dangerous Drugs Section, prosecuted the case.

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

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 - Janice Cooks has been sentenced for stealing hundreds of thousands of dollars in Department of Housing and Urban Development (HUD) funds intended for housing for disabled women and their children.

“The defendant obtained nearly a million dollars from HUD in grant funds designated for housing for disabled women and children,” said U.S. Attorney Byung J. “BJay” Pak.  “Cooks intentionally mismanaged the money, spent it on personal and business expenses not covered by the grant, and ultimately caused the intended recipients to lose their homes. 

“This sentencing proves our continuing resolve to root out thievery in all forms, especially when the funds involved should have been used to help vulnerable members of our society,” said Nadine Gurley, Special Agent in Charge, Office of Inspector General, U.S. Department of Housing and Urban Development.  “We will continue to work with our law enforcement partners and the U.S. Attorney’s Office to protect the integrity of our housing programs.”

“Whether it’s housing benefits for eligible individuals, or Social Security payments to disabled persons, the Social Security Office of the Inspector General is committed to working with our Federal, State and local law enforcement partners to combat fraud, waste, and abuse in benefit programs,” said Wayne R. Warren, Acting Special Agent-in-Charge of the SSA OIG Atlanta Field Division. “Cases like this keep us focused on pursuing bad actors to protect Social Security and other benefits for those whose truly depend on them.”     

According to U.S. Attorney Pak, the charges and other information presented in court: During the years 2012 through 2015, HUD awarded Cooks three grants to fund the Quilt SOLE program; a program to provide housing for disabled women and children.  Prior to receiving any grant funds, she was required to submit a detailed budget outlining the costs of her program and also attend a training conference to ensure she understood the rules and regulations surrounding receiving federal grant funds.  The program rules required that she spend funds only in a manner consistent with her detailed budget and that she maintain documentation to justify all of her spending.

HUD approved funds for the Quilt SOLE to rent 14 apartments thus providing housing for 14 disabled women and their children.  Cooks failed to adhere to the budget she created and to follow the program’s rules.  In 2012, she requested and received approximately $125,000 in HUD funds.  Instead of spending those funds on Quilt SOLE, she transferred over $59,000 into her own personal savings account. 

Additionally, despite receiving funding for only 14 apartments, Cooks rented between 22 and 24 apartments at the same apartment complex. She also used HUD funds on business expenses not related to the Quilt SOLE program and on personal expenses like travel, dining out, and shopping.  As a result of her misappropriation of the HUD funds in 2015, every family she was supposed to provide housing for received eviction notices and were forced to find other places to live.

Janice Cooks, 53, of Lithonia, Georgia, has been sentenced to four months in prison and eight months of home confinement to be followed by three years supervised release, and ordered to pay a $100 special assessment, and pay restitution of $198,907 to HUD and $35,812.51 to Ashley Cascade Apartments.  Cooks was convicted of these charges on September 8, 2017, after she pleaded guilty.

This case was investigated by the Department of Housing and Urban Development and Social Security Administration - Office of the Inspector General.

Special Assistant U.S. Attorney Diane C. Schulman and Assistant U.S. Attorney John S. Ghose 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 - Terry M. Williams has been sentenced to federal prison for possession of a firearm by a convicted felon, after Williams threatened a tow truck driver with a gun to prevent his vehicle from being towed.  He also threatened to shoot and kill the apartment maintenance man who called for the tow.  Williams is a three-time convicted felon and self-professed member of the “Duct Tape” gang.

“Williams threatened to kill two people who were simply doing their jobs,” said U.S. Attorney Byung J. “BJay” Pak.  “He then audaciously attempted to influence the testimony of the maintenance employee while in local custody.  Williams, a three-time convicted felon and local gang member, will no longer be a menace to the community.  This case demonstrates how Project Safe Neighborhoods is strategically and aggressively working to make our communities safer.”

“Even after three felony convictions, Williams showed no indication he would change and continued to be a menace to society,” said Chris Hacker, Special Agent in Charge of the FBI’s Atlanta field office. “We will use every legal resource to protect our citizens and keep criminals like Williams where they can do no harm, and this case reflects that.”

According to U.S. Attorney Pak, the charges and other information presented in court: On January 8, 2018, a tow truck driver attempted to remove Williams’ vehicle which was improperly parked at a DeKalb County apartment complex.  After Williams noticed his vehicle on the tow truck, he blocked in the tow truck driver using another vehicle.  Williams then exited his vehicle, pointed a gun at the tow truck driver, and demanded that the driver remove Williams’ vehicle from the tow truck or be killed.  Fearing for his life, the tow truck driver removed Williams’ vehicle from the tow truck.  Williams then turned his anger on the apartment maintenance employee who called for the tow.  Williams threatened to kill the maintenance employee and shoot up the apartment complex in a profanity-laced rant, which the employee recorded on his cellular telephone.  Williams then fled the scene and was later arrested after a traffic stop. 

While in custody in the DeKalb County jail, Williams instructed his girlfriend to locate the maintenance employee and have him sign an affidavit on Williams’s behalf in an effort to dismiss the charges.  The gun which Williams used to threaten the tow truck driver was later found in the apartment which Williams shared with his girlfriend, together with a quantity of crack and powder cocaine.  Williams illegally possessed this firearm after being previously convicted of three prior felonies involving drug possession, drug distribution, and theft.  The evidence also revealed that Williams had been causing problems at the apartment complex for months preceding this incident, including brandishing a gun in his waistband and threatening an off-duty police sergeant who lived at the same complex.

Terry M. Williams, 40, of Atlanta, Georgia, has been sentenced to three years, eight months in prison to be followed by three years of supervised release.  Williams was convicted of these charges on December 11, 2018, after he pleaded guilty during his jury trial.

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

Assistant U.S. Attorney Michael Herskowitz, Chief, Cyber and Intellectual Property Crime Section and Assistant U.S. Attorney Jessica Morris prosecuted the case.

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

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

GAINESVILLE, Ga. - Jeanette Elizabeth Ford has been sentenced for embezzling over $1.27 million from her now-bankrupt former employer, Classic Party Rentals (CPR).  Ford was convicted of wire fraud on May 14, 2018, after she pleaded guilty to a criminal information.

“Ford abused her position of trust and embezzled a startling amount of money from her employer,” said U.S. Attorney Byung J. “BJay” Pak.  “Over 15 months, Ford managed to steal and spend over $1.2 million -- on expensive vacations, the renovation and furnishing of a mountain home, and personal items for herself and her family.  Now Ford is going to federal prison and has been ordered to pay restitution to the victims.”

“Ford worked in a position of trust for a company that expected her to honor that trust,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Instead she chose to abuse it and her personal greed not only hurt the company, but everyone who worked for them. They will never be made whole but can take some solace in the fact that Ford is paying for her crimes.”

According to U.S. Attorney Pak, the charges and other information presented in court:  In 2015 and 2016, Ford was employed as an operations controller in the accounting and finance department at CP OpCo, LLC, d/b/a Classic Party Rentals.  Prior to its liquidation and sale in mid-2017, CPR was one of the nation’s largest event rental companies.  CPR operated throughout the United States under the names of Classic Tents, Ducky-Bob’s, Panache, Festive Fare, and Capital Party Rentals.  Although CPR was headquartered in Inglewood, California, Ford worked remotely from her home in Blue Ridge, Georgia.

As part of her job as a controller at CPR, Ford was responsible for reconciling and recording employees’ corporate credit card transactions within CPR’s accounting records.  Ford used her authority and access as an operations controller to circumvent company controls and charge over $1.27 million in unauthorized personal expenses, for herself and her family, to a corporate credit card issued in her name.  In her position, she was able to hide her unauthorized charges from her colleagues and supervisors at CPR.

Ford manipulated transaction reports from MasterCard, the corporate credit card company, by deleting the unauthorized transactions from MasterCard spreadsheets and then presenting the manipulated data to conceal the credit card transactions.  Ford also recorded fraudulent entries within the accounting system.  The corporate credit card company would automatically debit a cash account when CPR’s total credit card transactions reached a certain threshold. 

As bank reconciliations were performed at the end of each month, these cash transactions were recorded by crediting cash and debiting the credit card liability.  Ford would use her ability and access to post entries within the system and record the fraudulent journal entries.  These entries were then used to change the balance of the credit card liability in order to reconcile the credit card file that she manipulated.  Ford also circumvented CPR policy by not linking her company credit card to CPR’s expense reporting software.

Jeanette Elizabeth Ford, 46, of Blue Ridge, Georgia, was sentenced by U.S. District Judge Richard W. Story to two years in prison, to be followed by three years of supervised release.  Ford has also been ordered to pay $1,274,907.36 in restitution.

Assistant U.S. Attorneys John S. Ghose, Alex Sistla, and Kelly Connors prosecuted the case.  The case was investigated by the Federal Bureau of Investigation.

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 - Shailesh (“Shue”) Kothari, the former owner and CEO of Primera Medical Group, Inc., and Timothy McMenamin, Primera’s former Chief Operating Officer have been sentenced for conspiracy to commit healthcare fraud and aggravated identity theft. 

“Patients submit to a doctor’s care with the expectation they will be provided the best care possible,” said U.S. Attorney Byung J. “BJay” Pak.  “This case unfortunately is an example of greed.  The sentences reflect the seriousness of fraudulent health insurance billing, particularly when that billing is coupled with the provider sending false medical reports to patients.”

“Kothari and McMenamin chose to take advantage of patients and the entire health care industry by billing for services that were never provided and falsifying lab reports,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “This sentence will serve as a reminder to others that the FBI will not tolerate healthcare providers who engage in schemes that defraud the industry and put innocent patients at risk.”

According to U.S. Attorney Pak, the charges and other information presented in court: Primera Medical Group, Inc., was a health clinic in Atlanta, Georgia, owned by Shailesh Kothari, Chief Executive Officer, and operated by Timothy McMenamin, Chief Operating Officer.  Primera claimed to focus its practice on preventative wellness, specifically corporate wellness, concierge care, and allergy testing. Kothari is a Doctor of Chiropractic Medicine who has been licensed to practice in Georgia since January 2009.

Primera hired market research companies across the United States in order to recruit patients to participate in allergy testing.  Patients were told that there would be no out-of-pocket expenses and that their insurance would cover the cost of the testing in addition to being paid an amount between $65 to $100 for participating.  Patients were tested for allergies regardless of whether they had any symptoms, and without any determination of medical necessity for the testing.

During the allergy testing, patients’ blood was drawn, purportedly so that it could be sent to a laboratory for allergy and other testing.

Primera Medical Group billed the patients’ private insurers for multiple procedures, including blood tests.  When it billed the private insurers, Primera Medical Group used the National Provider Identifier numbers of multiple doctors, without their knowledge and without those doctors having performed the services that were billed.  The doctors also did not order the laboratory tests or the allergy immunotherapy injections billed for virtually every patient.

Primera Medical Group also billed for blood tests that were never done.  As of July 2016, hundreds of blood tests had not been completed, but were billed for by Primera.  When an insurance company requested medical records to support some of the billed services, Kothari asked McMenamin to create false laboratory reports to submit to the insurance company.  McMenamin created the false laboratory reports and those false reports were provided to the insurance company to support the fraudulent billing.

Because the laboratory tests were not actually completed for many patients, there were no results to provide patients.  When a patient asked for results for laboratory tests that were not completed, McMenamin created false laboratory results for those patients.  On multiple occasions, Kothari and McMenamin sent false laboratory reports directly to patients.  They did not tell the patients that the results were false.  In one specific case, Kothari and McMenamin prepared false lab reports for a five-year-old who was suffering from an unknown reaction.
In total, Primera Medical Group submitted more than 4,500 fraudulent claims using the NPI numbers of unknowing doctors.  These claims sought more than $8.5 million in insurance payments.

Shailesh (“Shue”) Kothari, 45, of Atlanta, Georgia, and was sentenced to six years, nine months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $1,506,181.32.  Kothari was convicted on these charges on October 29, 2018, after he pleaded guilty.

Timothy McMenamin, 32, of Atlanta, Georgia, was sentenced to seven years, ten months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $1,506,181.32.  McMenamin was convicted on these charges on November 16, 2018, after he pleaded guilty.

This case was investigated by the Federal Bureau of Investigation.  Assistance was also provided by the Special Investigations Unit for Blue Cross Blue Shield of Georgia.

Assistant U.S. Attorney Christopher J. Huber, Deputy Chief of the Complex Fraud 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 - Kinsley Kilpatrick and Tracie Jeanne Kilpatrick have pleaded guilty to conspiracy to commit mail fraud by defrauding the Department of Veteran’s Affairs (“VA”) and the Social Security Administration (“SSA”) out of benefit monies by feigning disabilities. 

“These two defendants received over $60,000 a year in benefits to which they were not entitled,” said U.S. Attorney Byung J. “BJay” Pak.  “Additionally, the VA purchased a brand new Jeep that they would not have received but for their fraud.  These programs rely on the honesty of the participants, and those who take advantage will be prosecuted for their greed.”

David Spilker, Special Agent in Charge, Southeast Field Office, VA OIG, stated, “The Kilpatricks’ deceitful actions stole VA resources from a program designed to help disabled veterans obtain compensation for injuries incurred while in the military.  VA OIG’s continued oversight safeguards the integrity of VA’s programs.”

“The Social Security Office of the Inspector General is committed to protecting Social Security benefits and pursuing individuals whose deceitful and illegal actions target programs that exist for those who truly need them,” said Wayne R. Warren, Acting Special Agent-in-Charge of the SSA OIG Atlanta Field Division. “Therefore, we will continue to work with our law enforcement partners to investigate and prosecute individuals who try to defraud the SSA.”

According to U.S. Attorney Pak, the charges and other information presented in court: In 2015, Kinsley Kilpatrick, who received VA disability benefits, applied for and received additional VA disability benefits based on his fraudulent claim that he was restricted to a wheelchair and had 100 percent loss of use of arms and legs.  In support of his application, Kinsley and Tracie Kilpatrick completed false paperwork and falsely represented his medical condition at medical appointments.  In January 2016, based on this false information, the VA approved his application, appointed Tracie Kilpatrick to be his caretaker, and began paying him an additional nearly $5,000 per month in VA benefits. 

Meanwhile, in 2016, the defendants also falsely claimed to SSA that Tracie Kilpatrick was completely disabled from a seizure disorder.  In the paperwork submitted to the SSA, Kinsley Kilpatrick claimed, that he had to provide assistance to his wife for basic activities like bathing, toileting, and dressing.  Tracie Kilpatrick submitted paperwork asserting that she was unable to stand, walk, lift, carry, or drive.  Based on these fraudulent assertions, the SSA concluded that Tracie Kilpatrick was disabled and paid her disability benefits.  In truth, neither Kinsley nor Tracie Kilpatrick were as limited as they claimed and they were not entitled to the benefits they received based on their fraudulent misrepresentations. In fact, Kinsley Kilpatrick was not restricted to a wheelchair, and had full use of his arms and legs.  Tracie Kilpatrick had no serious functional limitations.  During the investigation, investigators video recorded Kinsley Kilpatrick doing back flips on a trampoline, and playing and coaching in a kickball league.  During surveillance, Tracie Kilpatrick was seen standing, walking, bending, driving, lifting, and carrying heavy items.

Kinsley Kilpatrick, 39, and Tracie Kilpatrick, 45, both of Powder Springs, Georgia, will be sentenced on June 6, 2019, at 10:00 a.m., before U.S. District Judge Leigh Martin May.  Additionally, the defendants agreed to forfeit the 2017 Jeep Cherokee that they purchased with VA funds.

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

Special Assistant U.S. Attorney Diane C. Schulman 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 – Mohit Devendrabhai Sharma, Julliette Belle Carter, Kunal Jagdishbhai Sharma, and a call-center named Skyz International Outsourcing BPO have been indicted for their alleged involvement in a transnational criminal organization that victimized United States residents through a tele-fraud scheme that led victims to believe they owed taxes and fees to the Internal Revenue Service. Julliette Belle Carter was arrested in Canada pursuant to an extradition request.  In connection with the scheme, two other defendants and a call center in India were also charged for their alleged involvement. 

“IRS phone schemes profit by victimizing United States residents, including vulnerable members of our community,” said U.S. Attorney Byung J. “BJay” Pak.  “This indictment and the arrest in Canada demonstrate our commitment to identifying and prosecuting those who perpetuate phone scams on our citizens no matter where the perpetrators are located.”

J. Russell George, the Inspector General for the Treasury Inspector General for Tax Administration (TIGTA) advised that “since 2013, IRS impersonation scams have been on a relentless path, claiming more than 15,000 victims who have lost upwards of $74 Million to the scammers.  Today’s unsealed indictment makes clear that TIGTA will continue to be just as relentless in our pursuit of individuals who fraudulently represent themselves as IRS officials in order to extort money from taxpayers.  We will not back down from our pursuit of these criminals, and will continue to work with all law enforcement partners to bring them to justice.”

According to U.S. Attorney Pak, the charges, and other information presented in court: The indictment alleges that the defendants were involved in a sophisticated international telephone scheme.  Using lists of U.S. residents’ personal identifiable information, co-conspirators allegedly called potential victims while impersonating officials from the Internal Revenue Service. 

The callers would then threaten potential victims with prosecution or arrest if they did not pay alleged tax debts immediately.  After the victims agreed to pay, the callers would instruct the victims to send the money electronically using banks or money transmitters, such as MoneyGram, to defendants Mohit Devendrabhai Sharma, Julliette Belle Carter, and others.  Victims, including residents of Georgia, believed the threats and sent money.  Defendants Mohit Devendrabhai Sharma and Julliette Belle Carter retrieved the fraud proceeds from various MoneyGram locations in states such as Illinois, Ohio, Michigan, and Wisconsin.

The indictment charges Mohit Devendrabhai Sharma, Julliette Belle Carter, Kunal Jagdishbhai Sharma, and Skyz International Outsourcing BPO with conspiracy to commit wire fraud and wire fraud.  The indictment also charges Mohit Devendrabhai Sharma and Julliette Belle Carter with conspiracy to commit money laundering.

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

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

Assistant U.S Attorneys Jolee Porter and Jeffrey A. Brown, Deputy Chief, Complex Fraud Section, are prosecuting the case.

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

ATLANTA – Attorney General William P. Barr and U.S. Attorney Byung J. “BJay” Pak announced the largest coordinated sweep of elder fraud cases in history, surpassing last year’s nationwide sweep. The cases during this sweep involved more than 260 defendants from around the globe who victimized more than two million Americans, most of them elderly.

“Crimes against the elderly target some of the most vulnerable people in our society,” Attorney General William P. Barr said. “But thanks to the hard work of our agents and prosecutors, as well as our state and local partners, the Department of Justice is protecting our seniors from fraud. The Trump administration has placed a renewed focus on prosecuting those who prey on the elderly, and the results of today’s sweep make that clear. Today we are announcing the largest single law enforcement action against elder fraud in American history. This year’s sweep involves 13 percent more criminal defendants, 28 percent more in losses, and twice the number of fraud victims as last year’s sweep. I want to thank the Department’s Consumer Protection Branch, which led this effort, together with the Department’s Criminal Division, the more than 50 U.S. Attorneys’ offices, and the state and local partners who helped to make these results possible. Together, we are bringing justice and peace of mind to America's seniors.”

“The U.S. Attorney’s Office has made protecting the elderly a priority.  As part of the elder fraud sweep, this Office brought multiple indictments against defendants responsible for defrauding hundreds of victims, many of them are seniors, out of nearly $5 million,” said U.S. Attorney Byung J. “BJay” Pak.  “We remain focused on prosecuting the criminals who target our community’s seniors with financial scams and abuse.  Citizens always should be wary of callers who make threats and ask for personal information, and should contact law enforcement if they believe that they have fallen victim to one of these scams.”        

Three cases from the Northern District of Georgia include:

• United States v. Mehboob Mansurali Charania:  On November 6, 2018, the defendant was charged based on his alleged involvement in a transnational criminal organization that victimized over 340 people in the United States through a fraudulent India-based call-center scheme, resulting in over $200,000 in losses.  Criminal India-based call centers seek to profit by exploiting United States residents, including the most vulnerable members of our community, by impersonating officials from the Internal Revenue Service or other scams.  The call center operators threaten potential victims with arrest, imprisonment, or fines if they do not pay supposed taxes, penalties, or fees.  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 by purchasing prepaid debit cards or through wire transfers, including through MoneyGram and Western Union, to the attention of fictitious names and U.S.-based defendants and their co-conspirators.  Assistant U.S. Attorney Jolee Porter is prosecuting this case.

• United States v. Sean Kelly:  On January 4, 2019, the defendant pled guilty to mail fraud and securities fraud.  The defendant used his companies, Lion's Share Financial of East Cobb, Inc., Lion's Share & Associates, Inc., and Lionsshare Tax Services, LLC, to defraud his investors of at least $1 million.  His victims included veterans and elderly retirees.  As part of his scheme, the defendant promised that he would invest his victim’s funds in a variety of investment products, but instead spent it on personal expenses including mortgage payments, Super Bowl tickets, vacations, and large cash withdrawals.  Assistant U.S. Attorney Christopher J. Huber, Deputy Chief of the Complex Frauds Section, is prosecuting this case.

• United States v. Silvia Sanchez Valverde, et al.:  These five defendants operated a sweepstakes scam that targeted the elderly.  From February 2016 through September 2017, dozens of victims were contacted by telephone and told that they had won a sweepstakes or lottery.  The victims were told that they could receive their sweepstakes winnings after they paid various expenses, such as taxes and fees.  The victims were directed to pay the expenses to various companies controlled by the defendants.  The victims then mailed payments via personal and cashier’s checks to addresses that were linked to mailboxes rented by the defendants.  The defendants deposited the checks, totaling over $3.5 million, into their bank accounts and then transferred the majority of the funds to Costa Rica.  The defendants were sentenced to prison terms ranging from two to five years in prison.  Assistant U.S. Attorneys Kelly K. Connors and Cassandra J. Schansman prosecuted these cases.  

The Department took action in every federal district across the country, through the filing of criminal or civil cases or through consumer education efforts. In each case, offenders allegedly engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused alleged losses of millions of more dollars than last year, putting the total alleged losses at this year’s sweep at over three fourths of one billion dollars.

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

Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. The Justice Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.

A fact-sheet with technical-support fraud case information can be found at /media/993261/dl?inline.

A fact-sheet with cases on mass mailing fraud can be found at /media/993271/dl?inline.

A fact-sheet with examples of a few elder fraud cases involving extradition in which the Office of International Affairs played a substantial role can be found at /media/993266/dl?inline.

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

ATLANTA - Robert Codrut Dumitrescu pleaded guilty to federal charges of wire fraud conspiracy, computer fraud and abuse, and aggravated identity theft in connection with a scheme, orchestrated from Romania, which resulted in the illegal intrusion into computer servers in the United States, deployment of phishing messages to thousands of victims, and subsequent theft of victims’ social security numbers and bank account information.  His conspirators, Teodor Laurentiu Costea and Cosmin Draghici, also pleaded guilty earlier this year to federal charges related to this scheme.     

 “These defendants thought they could hide behind their computers in Romania and defraud the citizens of the Northern District of Georgia and elsewhere across the United States,” said U.S. Attorney Byung J. “BJay” Pak.  “These guilty pleas resulted from a tireless investigative effort to locate these fraudsters and bring them to justice in our District.  We will continue to protect our citizens from cyber-criminals, no matter how far the investigation reaches.”

“Cyber criminals cannot hide in the shadows of the internet no matter where they are,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI won’t let geographic boundaries stop us from pursuing those persons who cause tremendous financial pain to U.S. citizens. To the victims of these three conspirators and other cyber criminals, we will continue to identify them and pursue justice.”

According to U.S. Attorney Pak, the charges, and other information presented in court: From approximately October 2011 through February 2014, Robert Codrut Dumitrescu, Teodor Laurentiu Costea and Cosmin Draghici conducted a “vishing” and “smishing” scheme from Romania.  “Vishing” is a type of phishing scheme that communicates a phishing message, that is, a message that purports to be from a legitimate source, in this case the victims’ banks, through a voice recording. “Smishing” is similar to “vishing,” but communicates a phishing message through text messages.

As part of the scheme, the defendants compromised computer servers located in the Northern District of Georgia, and elsewhere, and installed both interactive voice response and bulk emailing software which initiated thousands of telephone calls and text messages to victims in the Northern District of Georgia, and across the United States, tricking them into disclosing Personally Identifiable Information (PII) such as financial account numbers, PINs, and social security numbers.   When a victim received a telephone call, the recipient would be greeted by a recorded message falsely claiming to be a bank. The interactive voice response software would then prompt the victim to enter their PII.

When a victim received a text message, the message purported to be from a bank and directed the recipient to call a telephone number hosted by a compromised Voice Over Internet Protocol server. When the victim called the telephone number, they were prompted by the interactive voice response software to enter their PII. The stolen PII was stored on the compromised computer servers and accessed by Dumitrescu and Costea, who then sold or used the fraudulently obtained information with the assistance of Draghici. 

At the time of their arrests in Romania, Dumitrescu possessed 3,278 financial account numbers, Costea possessed 36,050 financial account numbers, and Draghici possessed 3,465 financial account numbers – all fraudulently obtained through this scheme.   Based upon these numbers alone, the estimated loss amount is expected to exceed $21,000,000. 

On August 16, 2017, a grand jury charged Robert Codrut Dumitrescu, 41, Teodor Laurentiu Costea, 42, and Cosmin Draghici, 29, all of Ploiesti, Romania, with multiple federal computer and fraud-related crimes in connection with this scheme.  Dumitrescu, Draghici, and Costea were extradited from Romania to Atlanta last year to face these charges. 

Sentencing is scheduled for Costea on June 11, 2019 at 2:00 p.m., for Draghici on June 12, 2019 at 11:00 a.m., and for Dumitrescu on July 23, 2019 at 2:00 p.m., all before U.S. District Judge Thomas W. Thrash.

This case was investigated by the Federal Bureau of Investigation.

Assistant U.S. Attorney Michael Herskowitz, Chief of the Cyber and Intellectual Property Crime Section, is prosecuting the case.

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

ATLANTA - Jun Ying, who committed insider trading by exercising his company stock options ahead of Equifax’s public announcement of its massive data breach, pleaded guilty to a charge of securities fraud.

“Insider trading is an abuse of trust and victimizes everyone who invests in the stock market,” said U.S. Attorney Byung J. “BJay” Pak.  “Our office will continue its work to keep the stock market fair for all investors.”

“We must not allow company insiders to have an advantage over regular investors, otherwise the integrity of the markets and confidence of investors deteriorates,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. "The FBI will do everything in its power to maintain a fair and equitable stock market for everyone.”

According to U.S. Attorney Pak, the charges and other information presented in court: Equifax Inc. is a consumer credit reporting agency headquartered in Atlanta, Georgia.  During the summer of 2017, Equifax was the victim of a data breach, where hackers acquired names, Social Security numbers, birth dates, and addresses of over 145 million Americans.  At the time, Jun Ying was the chief information officer of Equifax U.S. Information Solutions.  In that role, he was provided sensitive information that led him to conclude that Equifax was the victim of the data breach before it was made public. 

On Friday, August 25, 2017, Ying texted a co-worker that the breach they were working on "Sounds bad.  We may be the one breached."  The following Monday, Ying conducted web searches on the impact of Experian's 2015 data breach on its stock price.  Later that morning, Ying exercised all of his stock options, resulting in him receiving 6,815 shares of Equifax stock, which he then sold.  He received proceeds of over $950,000, and realized a gain of over $480,000, thereby avoiding a loss of over $117,000.  On September 7, 2017, Equifax publicly announced its data breach, which resulted in its stock price falling.

Ying is the second Equifax employee to be found guilty of insider trading relating to the data breach following Sudhakar Reddy Bonthu, a former manager at Equifax, who pleaded guilty on July 23, 2018.

Sentencing for Jun Ying, 43, of Atlanta, Georgia, is scheduled for June 27, 2019, at 10:30 a.m. before U.S. District Judge Amy Totenberg.

This case is being investigated by the Federal Bureau of Investigation.  The U.S. Securities and Exchange Commission made contributions to the case.

Assistant U.S. Attorneys Christopher J. Huber, Deputy Chief of the Complex Frauds Section, and Lynsey M. Barron 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 – City of Atlanta contractor Lohrasb “Jeff” Jafari has been charged in a 51 count federal indictment with conspiratorial bribery, bribery, tampering with a witness, tax evasion, money laundering, and structuring.

“Jeff Jafari allegedly paid multiple bribes to two local officials over a period of years and then attempted to obstruct the federal investigation into his misconduct,” said U.S. Attorney Byung J. “BJay” Pak. “He also failed to pay income taxes on millions of dollars he earned from city contracts.  Instead, he used the funds to live a lavish lifestyle. Whether you bribe, take a bribe, or otherwise misuse the public’s money to enrich yourself – it’s all corruption. We will vigorously pursue any such cases.”

“FBI Atlanta’s public corruption squad remains very active and determined to expose the criminal conduct of public officials,” said Chris Hacker, Special Agent in Charge of the Atlanta FBI field office. “The investigation of Jafari and resulting indictment on numerous charges is a further example of our commitment to hold those serving the public in positions of trust, accountable.”

“This indictment takes you from the bribes to the benefits and everything in between,” said Thomas J. Holloman, III, Special Agent in Charge, IRS-Criminal Investigation. “It shows how money gains access, influences decisions, supports a lavish lifestyle and corrupts.  IRS-CI performed its key role in this case by following the money as Jafari acted to corrupt, impede, evade, launder and conceal his criminal actions while obtaining millions in city contracts.”

According to U.S. Attorney Pak, the charges, and other information presented in court: Beginning at least in 2014 to January 2017, Jafari allegedly paid thousands of dollars in bribe payments to Adam Smith, the then-Chief Procurement Officer of the City of Atlanta. At the time, Jafari was the Executive Vice-President of PRAD Group and did millions of dollars in work with the City of Atlanta, primarily under the City’s Architectural and Engineering contracts. 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.

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 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.

On February 26, 2019, a grand jury returned an indictment against Lohrasb “Jeff” Jafari, 68, of Alpharetta, Georgia, on 51 federal charges, including conspiratorial bribery, bribery, tampering with a witness, tax evasion, money laundering, and structuring.  He was arraigned before U.S. Magistrate Judge John K. Larkins III.  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 FBI and IRS Criminal Investigation.

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.

ATLANTA –Kevin Perry has been arraigned on charges that he ran a foreign currency investment fraud scheme.

“This defendant allegedly defrauded investors who trusted him with their hard-earned money,” said U.S. Attorney Byung J. “BJay” Pak.  “Even after regulators took action against Perry, he allegedly continued to seek to defraud investors, including at one point attempting to defraud an undercover FBI agent.” 

“Instead of living off well-earned investments, Perry’s alleged victims now have to worry about their financial futures,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Nothing can make victims of investment fraud whole again, but the FBI will continue to make it a priority to investigate and punish anyone who preys on investors for their own personal greed.” 

According to U.S. Attorney Pak, the charges, and other information presented in court: Perry allegedly led investors to believe that his investment company, Lucrative Pips, was successfully earning substantial profits by investing in the foreign currency (or “forex”) market.  Perry induced investors into sending money by signing agreements that claimed the investors’ initial investments were secure from loss.  In actuality, Lucrative Pips was never registered as a “commodity pool operator” with the Commodity Futures Trading Commission.  Also, Perry had never generated the historical returns represented to investors, and he was using investor money to enrich himself or to pay off other investors, with the goal of enticing others to invest with him.

The indictment further alleges that even after the Commodity Futures Trading Commission filed a civil complaint against Perry, he continued to make fraudulent investment pitches to potential investors.  In December 2018, Perry made a series of fraudulent investment pitches to an undercover FBI agent, who was posing as a potential investor.  Perry told the undercover FBI agent that an investment of $10,000 would return a profit of $19,000 to $25,000 per month and that he minimized any risk by doing a “100% money-back guarantee.”

Kevin Perry, 21, of Cartersville, Georgia was arraigned Monday, February 25, 2019 before U.S. Magistrate Judge Catherine M. Salinas.  A federal grand jury returned an indictment on December 12, 2018, alleging that Perry committed wire fraud.

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

This case is being investigated by the FBI.

Assistant U.S. Attorney Thomas J. Krepp and Nathan P. Kitchens, Deputy Chief of the Cyber and Intellectual Property Crime Section, are prosecuting the case.   The Commodity Futures Trading Commission provided invaluable assistance throughout the course of the investigation. 

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 announced today that the Northern District of Georgia helped to collect over $77 million in civil and criminal restitution and financial penalties for Fiscal Year 2018, ending September 30, 2018. Of this amount, the Northern District of Georgia directly collected $29,899,597, of which $10,536,937 was collected in criminal actions and $19,362,660 was collected in civil actions.  Also, the Northern District of Georgia worked with other U.S. Attorney’s Offices and components of the Department of Justice in joint cases to collect an additional $47,846,632. Of the amount collected jointly, $12,825 was collected in criminal actions and $47,833,807 was collected in civil actions.

As a whole, the Justice Department collected nearly $15 billion in civil and criminal actions in FY 2018. The $14,839,821,650 in collections in FY 2018 represents nearly seven times the appropriated $2.13 billion ($2,136,750,000) budget for the 94 U.S. Attorneys’ offices.

“Recovery of restitution and the imposition of financial penalties are a critical part of enforcement in criminal and civil fraud cases,” said U.S. Attorney Byung J. “BJay” Pak.  “This announcement shows that through financial enforcement efforts, our office has delivered a significant financial benefit to the citizens of our district and the country.”

The largest collections were from affirmative civil enforcement actions, in which the United States recovered government funds lost to fraud or other misconduct, or collected fines imposed on individuals and corporations for violations of federal health, safety, civil rights or environmental laws. For example, the Northern District of Georgia investigated and recovered $3.2 million from Georgia Bone & Joint; Southern Bone & Joint; Southern Crescent Anesthesiology, PC; Sentry Anesthesia Management, LLC; and David LaGuardia for allegations of kickbacks and submission of false claims to Medicare for prescription drugs purchased outside of the United States which were not approved by the U.S. Food and Drug Administration (FDA) https://www.justice.gov/usao-ndga/pr/orthopaedic-and-anesthesia-providers-pay-32-million-settle-false-claim-act-allegations. Similarly, over $30 million was recovered this year from Signature HealthCARE LLC in an investigation which began in this district and became national in scope following a whistleblower allegation filed in another district https://www.justice.gov/usao-ndga/pr/signature-healthcare-pay-more-30-million-resolve-false-claims-act-allegations-related.  This Office worked jointly with the U.S. Attorney’s Office for the Middle District of Tennessee and the Department of Justice Civil Frauds Section to investigate and ultimately settle violations of the False Claims Act for knowingly submitting false claims to Medicare for rehabilitation therapy services that were not reasonable, necessary, and skilled.  In addition, the Northern District of Georgia recovered debts owed to federal agencies, including the Departments of Housing and Urban Development, Health and Human Services, Treasury and Education, as well as the Small Business Administration.

The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are also responsible for enforcing and collecting criminal debts owed to the U.S. and to federal crime victims.  The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss.  While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs. Examples of recoveries by the Northern District of Georgia include garnishments and other collection efforts that led to recovery of criminal restitution in the amounts of $290,493 in United States v. Justin Herring, and $328,784 in United States v. Paul Anderson, both fraud cases prosecuted by the office.

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

ATLANTA – Joseph Orlando Hood, a previously convicted felon, has been convicted by a federal jury of several armed commercial robberies, including three Waffle House Restaurants and a United Inn and Suites Motel.

“Hood terrorized and nearly killed several people during his lengthy robbery spree,” said U.S. Attorney Byung J. “BJay” Pak. “Thanks to the courage of the many victims in this case who testified at trial despite suffering ongoing trauma, and the diligence of our federal and local law enforcement partners, this violent serial robber will be kept off the streets of our district for many years.”

“This case is the product of a concerted collaborative effort on the part of ATF and its local partners to target, investigate, and eliminate the perpetrators of violent crime,” said Assistant Special Agent in Charge Beau Kolodka of the ATF Atlanta Field Division.

“We are very thankful that the partnership between state local and federal agencies have proven to be effective in making our communities safe. In this case, it has taken a very violent felon off the streets. It is successful prosecutions of cases like this, that strengthens our collaboration between law enforcement and citizens to address crime and the fear of crime in our communities,” said Chamblee Police Chief Kerry Thomas.

According to U.S. Attorney Pak, the charges and other information presented in court:  Between November 12, 2016, and November 17, 2016, Hood committed commercial armed robberies at Waffle House restaurants in Chamblee, Lithonia, and Tucker, Georgia, at the United Inn and Suites in Decatur, and the Raymok Bar and Grill in Scottsdale.  All of the businesses were located in Georgia.

During one of the Waffle House robberies, Hood shot at a customer who tried to escape.  He also pistol-whipped the manager of United Inn and Suites motel during the armed robbery of that business. Hood’s armed robbery spree ended after he robbed Raymok Bar and Grill.  While Hood fired several rounds at a customer who tried to escape during the robbery, the manager of the bar shot Hood in the leg. Hood fled but was quickly located by law enforcement officers in a nearby apartment complex.

Joseph Orlando Hood, 32, of Scottdale, Georgia, will be sentenced before U.S. District Steve C. Jones on May 20, 2019 at 10:00 a.m.  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.

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

Assistant U.S. Attorneys Dash A. Cooper and Joseph Plummer prosecuted the case.

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

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov.

ATLANTA – Jhonnita L. Williams, a former department administrator at the Metropolitan Atlanta Rapid Transit Authority (MARTA), has been sentenced for her part in a false-invoice scheme that resulted in MARTA paying more than $520,000 for maintenance projects where no worked was actually performed.

“Williams sold the public’s trust for self-enrichment when she chose to participate in a half of million dollar theft of MARTA funds,” said U.S. Attorney Byung J. “BJay” Pak.  “Her sentence sends a clear message to others who may choose to misuse taxpayer dollars that they will be prosecuted to the fullest extent of the law.”

“Government employees who use their positions to steal money from taxpayers to subsidize their own personal greed, are one of the FBI’s top investigative priorities,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Public corruption erodes public confidence and the first step toward restoring that confidence is sending a message that crimes like this will not go unpunished.”

“The sentencing of Ms. Jhonnita Williams concludes a coordinated investigation with our federal law enforcement partners, and we are satisfied with the results,” said MARTA Police Chief Wanda Y. Dunham.  “This sentencing will send a clear message to any MARTA employee who thinks they are above the law and would act to erode the trust the public has given us. We would like to thank members of the FBI and U.S. Attorney’s Office for their efforts in assisting the MARTA Police Department with bringing all of the major players involved in this fraud scheme to justice and for seeking restitution of taxpayer dollars.”

According to U.S. Attorney Pak, the indictment, and other information presented in court: MARTA is the principal public transportation operator in the Atlanta area, providing fixed rail and bus service to more than 500,000 passengers per weekday. Formed by Metropolitan Atlanta Rapid Transit Authority Act of 1965, MARTA is a multi-county local governmental agency with a 2016 annual budget of more than $880 million.

Williams worked for MARTA from 1999 to 2017. From 2010 to 2017, Williams worked as an assistant and department administrator for Joseph J. Erves.  During most of the conspiracy, Erves served as MARTA’s senior director of operations and oversaw the maintenance of all of its buses and rail cars.

From approximately June 2010 to December 2016, Williams and Erves had more than 40 fake invoices prepared on behalf of three vendors for MARTA maintenance projects for which no work was performed.  Williams and Erves used the false invoices as bases to authorize payments to the three vendors – including fake invoices submitted by a business owned by Ferrell Williams (who was romantically involved with Jhonnita Williams).  After being paid, all three of the vendors funneled most of the money received from MARTA back to Erves and Williams. In total, MARTA paid more than $520,000 for maintenance projects when no work was actually performed.

Williams used her portion on the money to pay various personal expenses, including the purchase/financing of an approximately 3,000 square foot single-family home with 4 bedrooms and 2.5 bathrooms.

The sentences for all defendants in this case are as follows:

• On September 20, 2017, Joseph J. Erves, 54, of Lithonia, Georgia pleaded guilty to federal program theft. On January 16, 2018, Erves was sentenced to two years and nine months in federal prison, and was ordered to pay $522,825.45 in restitution.
• On March 29, 2018, Ferrell Williams, 63, of Cincinnati, Ohio, pleaded guilty to conspiring to commit federal program theft.  On August 1, 2018, Ferrell Williams was sentenced to eight months in federal prison, and was ordered to pay $41,539.10 in restitution.
• On November 28, 2018, Jhonnita Williams, 48, of Atlanta, Georgia pleaded guilty to one-count of conspiratorial federal program theft.  For her crime, Williams was sentenced to one year, four months in prison, three years of supervised released, and ordered to pay $522,825.45 in restitution.

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

Assistant U.S. Attorneys Jeffrey W. Davis, Chief of the Public Integrity and Special Matters Section, and Alison B. Prout 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 – Matthew Meadows, a convicted felon, has been sentenced to federal prison for possession of a stolen firearm.     

“A felon in possession of a firearm presents unnecessary risks to public safety,” said U.S. Attorney Byung J. “BJay” Pak.  “The illegal possession of firearms is part of the larger cycle of illegal guns that fuels gun violence and victimizes all residents of North Georgia.”

“This case reflects the importance of a strong working relationship between federal and local law enforcement agencies,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Because of the diligence of Gordon County Sheriff Deputies, this violent offender is no longer a threat to the community and because of federal charges he will have to serve his entire sentence in prison.”

“I am very satisfied with the conclusion of this joint investigation which resulted in a guilty plea. This conviction will help make Gordon County a safer community, and we are proud of the relationship that we enjoy with our federal colleagues,” said Gordon County Sheriff Mitch Ralston.

According to U.S. Attorney Pak, the charges, and other information presented in court:  On November 30, 2017, the Gordon County Sheriff’s Office responded to a report and encountered Meadows, a convicted felon, asleep in a vehicle.  A deputy observed two firearms in the defendant’s immediate possession, one of which Meadows stole from a residence.  Meadows, who has prior felony convictions for the sale of methamphetamine, burglary, and making terroristic threats, was also in possession of methamphetamine at the time he was arrested.   

Matthew Meadows, 32, of Calhoun, Georgia, was sentenced to four years, three months in prison to be followed by three years of supervised release.  Meadows pleaded guilty and was convicted of possessing a stolen firearm on November 16, 2018. 

This case was investigated by the FBI and the Gordon County Sheriff’s Office.

Assistant U.S. Attorney Ryan J. Huschka prosecuted the case.

Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

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 - Zachary Adam Johnson has been sentenced for aggravated identity theft and mail theft.  The defendant was previously a part-time mail carrier for the postal service.

“This case shows the importance of concerned citizens reporting suspicious conduct to law enforcement,” said U.S. Attorney Byung J. “BJay” Pak.  “Without that call, the police never would have obtained a search warrant for Johnson’s car and found the large amount of stolen mail there.  We ask all citizens to remain vigilant and if you see something, say something.” 

“The Postal Inspection Service applauds the efforts of the bank employees who reported the suspicious activity of their customer’s account to law enforcement officials,” said David M. McGinnis, Inspector in Charge of the Charlotte Division. “Postal Inspectors will remain vigilant in pursuing criminals, like Johnson, to ensure the public's trust in a safe and secure mail system.”

According to U.S. Attorney Pak, the charges and other information presented in court: Johnson repeatedly broke into the U.S. Post Office in Snellville, Georgia, and stole mail.  After stealing the mail, Johnson would look through it for checks and money orders, then change the payees on those instruments to make them payable to himself, and cash them at local banks.  On one occasion, Johnson also forged the signature of the account owner on a check. 

On June 28, 2018, Johnson was arrested by the Snellville police department after an alert bank teller at Regions Bank observed that he was trying to cash a check with a forged signature from a longtime branch customer.  A search of Johnson’s car revealed five bins of stolen mail in the trunk.  Johnson was released on bond by a Gwinnett County judge, but continued his conduct.  On July 7 and 9, 2018, while on bond in his Gwinnett county case, Johnson was captured on surveillance video breaking into the post office and stealing mail. 

Zachary Adam Johnson, 41, of Loganville, Georgia, has been sentenced to two years, one day in prison to be followed by three years of supervised release.  On November 13, 2018, Johnson pled guilty to one count of aggravated identity theft and one count of mail theft.

This case was investigated by the U.S. Postal Inspection Service, which has already notified the victims it was able to identify from the seized stolen mail.  The Snellville police department also assisted with this case.

Assistant U.S. Attorney Alana R. Black 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 – Local business owner Magdaleno Garcia Alonso has pleaded guilty to attempting to bribe an IRS Revenue Agent to get out of paying his personal and business taxes.

“Garcia attempted to buy his way out of paying his taxes by bribing an IRS Revenue Agent,” said U.S. Attorney Byung J. “BJay” Pak.  “As expected, the agent reported his illegal offer – and now Garcia must answer for his crimes.”

“It is the mission of the Treasury Inspector General for Tax Administration (TIGTA) to protect the integrity of the IRS and promote the fair administration of our federal tax system,” said Special Agent in Charge Gary Smith of TIGTA’s Southern Field Division.  “TIGTA and our law enforcement partners at the U.S. Attorney’s Office will do everything within our power to ensure those individuals who attempt to bribe IRS agents and corrupt our nation’s tax system will be prosecuted to the fullest extent of the law.”

According to U.S. Attorney Pak, the charges, and other information presented in court: Garcia owned and operated Acworth Georgia Concrete, Inc. Garcia filed tax returns with the Internal Revenue Service (“IRS”) for 2015 and 2016, both as an individual and on behalf of his concrete business. Based on those filings, the IRS notified Garcia that it was auditing his tax returns. As a result of the audit, the IRS calculated that Garcia owed approximately $234,000 in back taxes for his business and approximately $111,000 in back taxes personally.

In mid-September 2018, Garcia offered to pay the IRS Revenue Agent who completed the audit of his tax returns a cash bribe if the agent reduced Garcia’s tax liabilities. The Revenue Agent properly reported Garcia’s bribe offer to the appropriate authorities – and federal law enforcement agents set up an undercover operation to record Garcia. 

On September 19, 2018, Garcia met the Revenue Agent at a fast-food restaurant in Cobb County, Georgia. During that recorded meeting, Garcia proposed that if the IRS agent reduced his back taxes from $345,000 to $100,000, then he would pay the IRS agent $30,000 in cash.  In fact, Garcia hand wrote an agreement setting out the terms of his bribery scheme, writing that he would “pay [the] IRS $100,000” in back taxes (instead of $345,000) and would give the IRS Agent a bribe payment of “$20,000 now” and “$10,000” in the future. In her undercover role, the IRS agent agreed and signed Garcia’s contract. Garcia then gave the IRS Agent $20,000 in cash. On November 10, 2018, federal law enforcement officers arrested Garcia as he arrived to meet the IRS agent to give her an additional $5,000 cash bribe payment.

Garcia has admitted and agreed that he is a citizen of Mexico, is illegally in the United States, and will consent to being removed from the United States after he completes his prison sentence.

On November 6, 2018, a federal grand jury returned an indictment against Garcia, 50, of Acworth, Georgia, for bribery.  Garcia pleaded guilty to that charge via criminal information. 

This case is being investigated by the U.S. Department of the Treasury, Treasury Inspector General for Tax Administration (TIGTA).

Assistant U.S. Attorney Jeffrey W. Davis, Public Integrity and Special Matters section chief, is prosecuting the case.  The case was previously prosecuted by former Assistant U.S. Attorney Jenny R. Turner.

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 - Jokelra Copeland has been convicted by a federal jury for accepting bribe payments to smuggle contraband, including illegal drugs, into Autry State Prison in Pelham, Georgia.

“It’s troubling that Copeland was willing to sell her oath of office by breaking the very laws she had only months before promised to enforce,” said U.S. Attorney Byung J. “BJay” Pak.  “Smuggling contraband into our state prisons is a dangerous business.  It compromises the safety of everyone in the prison – inmates, corrections officers and other employees.  This type of conduct will not be tolerated.  And this defendant will now be held accountable for her betrayal of the public trust.”

“Those who violate their sworn duties as prison officers for greed are a top priority for the FBI,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Copeland not only betrayed the institution she was sworn to protect, she also betrayed every hard working corrections officer who upholds their oath every day.”

“We are pleased to see that justice has been served on this individual for her role in jeopardizing the safe and secure operations of our facilities,” said GDC Interim Commissioner Timothy C. Ward.  “Ridding our prisons of corrupt staff and shedding light on those who choose a path of dishonor continues to be one of our top priorities.”

According to U.S. Attorney Pak, the charges and other information presented in court:  Copeland began work for the Georgia Department of Corrections (“GA DOC”) in 2014.  She was assigned to work the overnight shift at Autry State Prison in Pelham, Georgia.  Within months of being hired, Copeland conspired with inmates and other corrections officers to smuggle contraband into the prison. 

On multiple occasions, the defendant smuggled marijuana to inmates by hiding the packages under her clothing as she passed through the prison’s security entrance.  During a four-month period in mid-2015, Copeland accepted more than $13,000 in bribe payments from the family members of at least two inmates.  Financial records showed that on at least eleven occasions bribe payments were sent to Copeland using international financial wire services. 

Jokelra Copeland was one of 68 GA DOC officers who were arrested by the FBI in 2016 after an extensive federal investigation.  The FBI investigation revealed that some GA DOC officers were willing to smuggle contraband into state prisons in exchange for bribes while other officers were willing to use their law enforcement credentials to protect drug deals occurring outside of the prisons.  

Jokelra Copeland, 32, of Doerun, Georgia, will be sentenced before U.S. District Judge Amy Totenberg on May 1, 2019.  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.

This case is being investigated by the FBI.

Assistant U.S. Attorney and Deputy Chief of the Public Integrity and Special Matters section Brent Alan Gray and Assistant U.S. Attorney Bret R. Hobson 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, Ga. – Mewael Berhane, who communicated on the Internet to arrange to meet a minor girl for sex, has been sentenced to federal prison for enticing a minor to engage in illegal sexual activity.

“This case shines a light on some of the darkest corners of the Internet, where predators seek out minors to victimize,” said U.S. Attorney Byung J. “BJay” Pak.  “Through the vigilance of our law enforcement partners, Berhane is being held accountable for his depraved conduct.”

“The federal investigation and subsequent prison sentence clearly reflects the threat Berhane posed to the community,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Fortunately, he connected with an undercover FBI agent and not a child. Let it be a warning to sexual predators who think the anonymity of the internet keeps them protected from detection.”

According to U.S. Attorney Pak, the charges and other information presented in court: In October 2017, Berhane posted an ad on Craigslist that was titled “Very Taboo-something different.”  In the ad, he expressed his interest in finding mothers and daughters who wanted to have sex with the same man. 

An agent with the FBI responded, posing as the “mother” of an 11-year-old girl.  The “mother” wrote that she was looking for someone to teach her 11-year-old daughter how to be with a man sexually.  Berhane told her that he would “definitely be up for that.” 

Berhane continued communicating with the girl’s “mother” on the cell phone app “Kik messenger” and graphically described the sex acts which he planned to engage in with the 11-year-old girl.  Berhane asked the mother to send him photos of her 11-year-old daughter on multiple occasions.  He even sent her a photo of himself wearing only his underwear.

On November 7, 2017, Berhane made arrangements to meet the mother and the girl for the purpose of engaging in sex with the child.  That same day, the defendant drove from his office in Decatur to Duluth, Georgia, in rush hour traffic to meet the girl.  He was arrested when he arrived at the pre-arranged location.   

Mewael Berhane, 40, of Stone Mountain, Georgia, has been sentenced to ten years in prison, to be followed by ten years of supervised release.  He will also be required to register as a sex offender when he is released from prison.  Berhane was convicted on these charges on October 22, 2018, after he pleaded guilty.

This case was investigated by the FBI.

Assistant U.S. Attorneys William G. Traynor and Leanne M. Marek prosecuted the case.

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

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

ATLANTA –Nathan E. Hardwick IV has been sentenced to 15 years in federal prison for orchestrating a scheme to defraud his law firm out of millions of dollars. On October 12, 2018, following a four-week trial, a federal jury convicted Hardwick of wire fraud, conspiracy, and making false statements to a federally insured financial institution.

“This attorney violated the trust placed in him by his clients and his partners; as a result, he is now facing a lengthy prison sentence,” said U.S. Attorney Byung J. “BJay” Pak. “Lawyers who steal client money and embezzle from their partners can expect years in prison for their violation of trust.”

“It is especially troubling that this crime was orchestrated by a lawyer who swore an oath to uphold the law and represent his clients with integrity,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Hardwick was in debt through his own fault and chose to steal from his clients and firm to pay back that debt and finance his extravagant lifestyle. Now he will pay back his debt to society in prison.”

According to U.S. Attorney Pak, the charges and other information presented in court: Hardwick and Asha R. Maurya engaged in a scheme to defraud MHSLAW, Inc. and its subsidiaries, Morris Hardwick Schneider, LLC, and LandCastle Title, LLC, (collectively referred to as “MHS”). MHS owned and operated a law firm that specialized in residential real estate closings and foreclosures, and it ran a title business. MHS employed approximately 800 people in 16 states. Hardwick was the managing partner of the law firm and the CEO of the title business. He also ran the law firm’s closing division, which was based in Atlanta. Maurya managed MHS’s accounting operations under Hardwick's supervision and control.

In early 2007, Hardwick and his law partners sold off part of their business, and Hardwick pocketed approximately $11.8 million. Hardwick quickly squandered that money, however, and by the end of 2010 was broke and deeply in debt.

From January 2011 through August 2014, Hardwick siphoned off more than $26 million from MHS’s accounts to pay his personal debts and expenses and to finance his extravagant lifestyle. More than $19 million of that was client money that was stolen from MHS’s attorney trust accounts. Hardwick spent approximately $18.5 million of the fraud proceeds on gambling, private jets, and more than 50 different social companions.

MHS’s audited financial statements showed that the firm’s combined net income from 2011 through 2013 was approximately $10 million. During that same three-year period, however, Hardwick took more than $20 million out of the firm’s accounts.

Both Hardwick and Maurya made numerous false statements to Hardwick’s law partners concerning the amount of money that Hardwick was taking out of the firm. And Hardwick and Maurya conspired to cover-up the fraud.

Nathan E. Hardwick IV, 53, of Atlanta, Georgia, was sentenced by U.S. District Judge Eleanor L. Ross to serve 15 years, forfeit over $19.9 million in criminal proceeds, given a $2,300 special assessment, and will be required to pay restitution to the victims of the offense. When he is released from prison, Hardwick will be required to serve six years on supervised release.  Judge Ross sentenced Asha R. Maurya to seven years in prison, and three years of supervised release.  Maurya was also ordered to forfeit $900,000 in criminal proceeds.  Their restitution hearing is scheduled for May 9, 2019.

This case was investigated by the FBI.

Assistant U.S. Attorneys Russell Phillips, Lynsey Barron, Kelly Connors, and former Assistant U.S. Attorney Doug Gilfillan 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 – U.S. Attorney Byung J. “BJay” Pak announced the appointment of thirteen new Assistant U.S. Attorneys who will immediately employ their talents to support the Northern District of Georgia’s (NDGA) mission to enforce the law and defend the interests of the citizens we serve in this district.

“Citizens expect exceptionally talented and dedicated lawyers to represent the United States in federal court,” said U.S. Attorney Byung J. “BJay” Pak.  “These outstanding Assistant U.S. Attorneys have proven they are committed to excellence in their service to our country, and the citizens of the Northern District of Georgia.”

• Miguel R. Acosta is a former Special Assistant U.S. Attorney in the Western District of Texas, where he prosecuted immigration offenses.  Prior to that he was an attorney with Gobel Flakes, LLC in Orlando.  Miguel served as a law clerk to U.S. Magistrate Judge Karla Spaulding in the Middle District of Florida.  Miguel graduated magna cum laude, from University of Tampa with a degree in Criminology, and he received his law degree, cum laude, from Florida State University College of Law, where he served as Administrative Editor of the Journal of Land Use & Environmental Law.  He began his career in the U.S. Air Force JAG Corps, and is currently a JAG in the Florida Air National Guard.  Miguel is a member of the Criminal Division.
   
• Carolyn “Tippi” Cain Burch handled complex civil litigation and appeals for Chalmers Burch & Adams LLC.  Earlier in her career, she was a senior litigation associate with King & Spalding LLP and Swift Currie, McGhee, & Hiers, LLP.  She was a law clerk for U.S. District Judge C. Ashley Royal in the Middle District of Georgia.  Tippi graduated, cum laude, in political science from Auburn University, and received her law degree, cum laude, from the University of Georgia —where she was Vice Chair of the Moot Court Board.  Tippi currently serves as Chairwoman of the Board of the Georgia Department of Community Affairs.  Tippi is a member of the Appeals and Legal Advice Division.
   
• Anthony DeCinque was a Senior Associate at Morris, Manning & Martin, LLP, where he handled complex commercial litigation and appellate matters. Previously, he practiced at Mayer Brown LLP and Patterson Belknap Webb & Tyler LLP in NYC.  Anthony graduated from Georgia Tech, where he majored in chemical engineering. He graduated from NYU Law School. Upon graduating, Anthony clerked for Hon. Morton Greenberg, U.S. Court of Appeals for the 3rd Circuit.  Anthony is a member of the Civil Division.
   
• Akash Desai joins us from Kilpatrick Townsend & Stockton LLP, where he was an associate in the trademark litigation group. Akash graduated magna cum laude in Political Science from the University of Rochester, and he received his law degree from Vanderbilt University School of Law.  He also holds an LLM from NYU Law School.  He clerked for Hon. Jon McCalla, U.S. District Judge in the Western District of Tennessee, and for Hon. Aleta Trauger, U.S. District Judge in the Middle District of Tennessee. Akash is a member of the Civil Division.
   
• Irina Dutcher served as a Chief Senior Assistant District Attorney for the Fulton County District Attorney’s Office.  She was previously an Associate at Kilpatrick Townsend and a Law Clerk for Honorable C. Lynwood Smith, U.S. District Judge for the Northern District of Alabama. Irina received her J.D. from Vanderbilt University Law School and her B.A., magna cum laude, from the University of Southern California.  Irina is a member of the Criminal Division.
   
• Soo Jo served as the senior staff attorney for the Magistrate Court of Gwinnett County, and has over two decades of experience representing city and county governments in numerous subject matter areas.  Soo received her J.D. from Georgia State University College of Law and her B.S. from Georgetown University.  Soo is a member of the Civil Division.
   
• Alex Joseph was an Assistant Solicitor in the Fourteenth Circuit Solicitor’s Office in Beaufort, S.C., where she handled felony prosecutions.  She was previously an Assistant District Attorney in the Ocmulgee Judicial Circuit, serving as the lead prosecutor in several trials.  She previously served as an extern for U.S. Magistrate Judge Linda T. Walker, and after law school, she was a law clerk to Superior Court Judge Robert Chasteen of the Cordele Judicial Circuit. Alex received her law degree from the University of Georgia School of Law, cum laude, where she was a member of the Journal of Intellectual Property Law. She received her B.A. in Political Science from Wellesley College. Alex is a member of the Criminal Division.
   
• Cal Leipold was previously an AUSA in the Middle District of Louisiana, where he prosecuted OCDETF and violent crime cases. Prior to becoming an AUSA, he served as a JAG officer in the Army.  He has done a tour of duty in Kandahar, Afghanistan, and was awarded the Bronze Star Medal for his service.  An Atlanta native, Cal earned a B.A. in History from Furman University and his law degree from Georgia State College of Law, where he was the Chief Justice of the Student Honor Court, and a member of the Moot Court Board.  He also earned an L.L.M. in National Security law, with distinction, from Georgetown University Law Center.  Cal is a member of the Criminal Division.
   
• Mellori Lumpkin-Dawson was a litigator at Greenberg Traurig, where she handled all aspects of employment litigation.  Previously, she practiced law at Holland & Knight LLP in Atlanta.  Originally from Bainbridge, Georgia, Mellori graduated summa cum laude from Florida A&M University, where she majored in Business Administration.  She received her law degree from UC-Berkeley, where she was the Supervising Editor of the California Law Review and served as the Articles Editor of the Berkeley Journal of African-American Law & Policy.  From August 2012 to October 2012, she served as a Special Assistant District Attorney for the South Georgia Judicial Circuit, where she tried two felony jury cases to verdict.  Mellori is a member of the Civil Division.
   
• Scott McAfee was a Senior Assistant District Attorney in the Fulton County District Attorney’s Office, where he was a member of the Major Case Division handling murder cases. He previously served as an intern for Justice David E. Nahmias on the Supreme Court of Georgia. He is an Eagle Scout.  Scott earned his law degree, cum laude, from the University of Georgia School of Law, and earned his B.A. in Political Science and Music from Emory University.  Scott is a member of the Criminal Division.
   
• Annalise Peters came from Alston & Bird, where she was an associate in the Litigation and Trial Practice Group.  She was an intern with our office in the Major Crimes Section from August to December 2013, during which time she co-tried a marriage fraud case through the 3rd year law intern program.  Annalise was a law clerk to Hon. Julie Carnes, 11th Circuit Court of Appeals.  A native of Atlanta, Annalise earned her law degree from UVA Law School, where she was the Assistant Managing Editor of the Virginia Law Review.  She received her B.A. from University of Georgia, summa cum laude, Phi Beta Kappa, and she was the captain of the UGA Varsity Track & Field Team.  Annalise is a member of the Criminal Division.
   
• Teresa Marie Stolze was a Senior Assistant DeKalb District Attorney in the Stone Mountain Judicial Circuit.  Teresa has tried over two dozen cases as lead and was an intern in our office on two occasions – from February to May 2007 and from June to August 2009.  Teresa served as a law clerk for then-Superior Court Judge Tilman “Tripp” Self III and Judge Edgar W. Ennis, of the Macon Judicial Circuit.  She also worked as a law clerk for Judge Steve Jones, who was then on the Superior Court of Athens-Clarke County.  She is a double dawg, earning her law degree, cum laude, from UGA Law School, where she was the Managing Board Notes Editor of the Georgia Law Review.  She earned her B.A., summa cum laude, Phi Beta Kappa. Teresa is a member of the Criminal Division.
   
• Samuel Williams served as a Trial Attorney for the U.S. Department of HUD in Atlanta. Previously, he worked as an extern for the U.S. EEOC and as a Judicial Intern for Hon. Linda M. McGee, North Carolina Court of Appeals. Sam received his J.D. from the University of North Carolina, where he was a Chancellor Scholar, and earned his B.A., summa cum laude, from Appalachian State University.  Samuel is a member of the Civil Division.

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 – Union General Hospital (“UGH”), located in Blairsville, Georgia, has agreed to pay $5 million to resolve allegations that it violated the False Claims Act by engaging in improper financial relationships with referring physicians.

“It is imperative that all medical decisions are based on the best interest of the patient not on financial gain,” said U.S. Attorney Byung J. “BJay” Pak.  “This settlement demonstrates our commitment to ensuring healthcare providers stay focused on the patient and not enriching themselves.”

“It is a priority for the FBI to protect taxpayers from those who would circumvent our healthcare laws,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Not only do taxpayers lose, but so do citizens who count on programs like Medicare for their healthcare needs.”

“It is unacceptable for hospitals to provide financial incentives to induce physicians to steer patients their way, said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta.  “The OIG will vigorously pursue providers who enter into arrangements that can potentially corrupt medical decision making.”

In early 2016, the U.S. Attorney’s Office for the Northern District of Georgia initiated a civil health care fraud investigation into UGH after receiving information from law enforcement agents who arrested several UGH employees for alleged criminal misconduct regarding controlled substances.  Shortly after these arrests, UGH replaced the majority of its executive team, conducted an internal investigation, and voluntarily disclosed significant amounts of information related to several financial relationships with physicians and physician practices. 

This settlement resolves allegations that UGH engaged in several different improper financial relationships with physicians between 2012 and 2016, in violation of the Stark Law. The Stark Law forbids hospitals from billing Medicare for certain services referred by physicians who have a financial relationship with the hospital unless the relationship falls within a defined exception. The United States alleges that the relationships UGH had with certain physicians were prohibited because UGH compensated the physicians in amounts that were above or inconsistent with fair market value or in a manner that took into account the volume or value of the physicians’ referrals.

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

This case was investigated by the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Department of Health & Human Services Office of Inspector General, and the Federal Bureau of Investigation, with assistance from the Tactical Diversion Squad from the Drug Enforcement Administration.

The civil settlement was reached by Assistant U.S. Attorneys Lena Amanti and Gabriel Mendel.

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

ATLANTA – Families United Services, Inc. (FUS) and Pamela McKenzie, the owner of FUS, have agreed to pay $645,000, and to be excluded from federal health care programs for a period of five years to resolve allegations that they submitted claims to the Georgia Medicaid Program for behavioral health services that they never provided.  The effect of the exclusion is that federal health care programs will not make any payments to FUS or McKenzie, or anyone who employs them, for any services that they have provided.

“Georgia Medicaid provides valuable mental health services and treatment for many of Georgia’s most vulnerable citizens,” said U.S. Attorney Byung J. “BJay” Pak. “False billing of the Georgia Medicaid Program diverts monies for citizens who depend on Medicaid for vital medical care.  Our pursuit of individuals who defraud federal health care programs will not cease.”

“Working with our law enforcement partners, we are dedicated to protecting patients and the federal health care programs intended to serve them,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta.  “Using our exclusion authority is a great remedy for banning bad providers from the program and protecting the American taxpayer.”

“We appreciate the Department of Community Health’s Program Integrity Section for being diligent in bringing this issue to our attention to investigate,” said Attorney General Chris Carr. “We will continue to work with our federal partners and root out those organizations and individuals that cross legal boundaries and do so at the expense of taxpayers.”

The government alleges that FUS and McKenzie violated the False Claims Act, 31 U.S.C. § 3729, et seq., by causing the submission of false claims to the Georgia Medicaid Program between October 1, 2010 and June 10, 2012 for behavioral health care services that were never provided.   

FUS is a Georgia corporation that was enrolled with the Georgia Department of Community Health to provide behavioral health services.  Between October 1, 2010 through June 10, 2012, FUS provided services to Medicaid members under two programs operated by the Georgia Department of Behavioral Health and Developmental Disabilities—Assertive Community Treatment (ACT) and Core. ACT is a recovery focused, high intensity, community based service for adults with severe and persistent mental illness.  Core services are a comprehensive range of outpatient and out of center mental health services provided to persons of all ages. The Georgia Medicaid Fraud Control Unit initiated its investigation after receiving a referral from the Program Integrity Section of the Georgia Department of Community Health.

This settlement highlights a powerful tool to protect federal health care programs and beneficiaries and to hold accountable those who commit health care fraud—the exclusion authority of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). Section 1128 of the Social Security Act gives HHS-OIG the authority to exclude individuals and entities from participation in federal health care programs for fraud or other misconduct.

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

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

The civil settlement was reached by Assistant U.S. Attorney Lena Amanti and Assistant Attorney General Sara Vann.

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

Greenway Health LLC (Greenway), a Tampa, Florida-based developer of electronic health records (EHR) software, will pay $57.25 million to resolve allegations in a complaint filed by the United States under the False Claims Act alleging  that Greenway caused its users to submit false claims to the government by misrepresenting the capabilities of its EHR product “Prime Suite” and providing unlawful remuneration to users to induce them to recommend Prime Suite, the Justice Department announced today. 

“Electronic health records are critically important to the health care decision process, and both patients and providers rely on these technologies to safely and accurately record and transmit vital health information,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division.  “This resolution demonstrates our continued commitment to pursue EHR vendors who misrepresent the capabilities of their products, and our determination to promote public health while holding accountable those who seek to abuse the government’s trust.”

The American Recovery and Reinvestment Act of 2009 established the Medicare and Medicaid EHR Incentive Program to encourage healthcare providers to adopt and demonstrate their “meaningful use” of EHR technology.  Under the program, the U.S. Department of Health and Human Services (HHS) made incentive payments available to eligible healthcare providers that adopted certified EHR technology and met certain requirements relating to their use of the technology.  To obt ain certification for their product, companies that develop and market EHR technology are required to demonstrate that their product(s) satisfies all applicable HHS-adopted certification criteria.  Developers must first pass testing performed by an independent, accredited testing laboratory authorized by HHS, and then obtain and maintain certification by an independent, accredited certification body authorized by HHS.

In its complaint, the government contends that Greenway falsely obtained 2014 Edition certification for its product Prime Suite when it concealed from its certifying entity that Prime Suite did not fully comply with the requirements for certification.  Among other things, Greenway’s product did not incorporate the standardized clinical terminology necessary to ensure the reciprocal flow of information concerning patients and the accuracy of electronic prescriptions.  Greenway accomplished its deception by modifying its test-run software to deceive the company hired to certify Prime Suite into believing that it could use the requisite clinical vocabulary. 

Additionally, in order to be eligible to receive incentive payments, healthcare providers were required to meet certain targets for EHR-related activities.  For example, at certain times providers were required to provide patients with clinical summaries following office visits.  In its complaint, the government further alleges that Greenway was aware that an earlier version of Prime Suite, which was certified to 2011 Edition criteria, did not correctly calculate the percentage of office visits for which its users distributed clinical summaries and thereby caused certain Prime Suite users to falsely attest that they were eligible for EHR incentive payments.  Greenway refrained from rectifying this error in order to ensure that its users would receive incentive payments.  As a result, numerous users of this earlier version of Prime Suite falsely attested that they were eligible for EHR incentive payments when, in fact, they had not met all necessary use requirements

Finally, the government also alleged that Greenway violated the Anti-Kickback Statute by paying money and incentives to its client providers to recommend Prime Suite to prospective new customers.

“In the last two years my office has resolved two matters against leading EHR developers where we alleged significant fraudulent conduct.  These are the two largest recoveries in the history of this District and represent the return of over two-hundred and twelve million dollars of fraudulently-obtained taxpayer monies.  These cases are important, not only to prevent theft of taxpayer dollars, but to ensure that the promise of health technology is realized in the form of improved patient safety and efficient healthcare information flow,” said United States Attorney Christina E. Nolan for the District of Vermont.  “This resolution demonstrates my office’s initiative and resolve to vigorously uncover and to doggedly pursue these complex cases.    We will be unflagging in our efforts to preserve the accuracy and reliability of Americans’ health records and guard the public fisc against corporate greed.  EHR companies should consider themselves on notice.”

“Medical professionals and patients depend on the security and competency of electronic health records as a means to improving both the quality and coordination of health care services," said U.S. Attorney Byung J. “BJay” Pak for the Northern District of Georgia. "Vendors who falsify the viability of their products erode the integrity of public health systems and will be held accountable for their misrepresentations.” 

“The False Claims Act settlement in this case will hopefully be a deterrent to those who selfishly circumvent our federal healthcare programs for their own benefit,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI will not tolerate companies stealing from federal taxpayers and the people who trust in the fairness of our federally funded healthcare programs.”

As part of the settlement, Greenway entered into a five-year Corporate Integrity Agreement (CIA) with the HHS Office of Inspector General (HHS-OIG) covering the company’s EHR software. This innovative five-year CIA requires, among other things, that Greenway retain an Independent Review Organization to assess Greenway’s software quality control and compliance systems and to review Greenway’s arrangements with health care providers to ensure compliance with the Anti-Kickback Statute.  Greenway must provide prompt notice to its customers of any patient safety related issues and maintain on its customer portal a comprehensive list of such issues and any steps users should take to mitigate potential patient safety risks.  The CIA also requires Greenway to allow Prime Suite customers to obtain the latest versions of Prime Suite at no additional charge, the opportunity to migrate their data from Prime Suite to another Greenway-developed software product also at no additional charge, and to give Prime Suite customers the option to have Greenway transfer their data to another EHR software vendor without penalties, service charges, or any other fees other than contractual amounts still owed in connection with goods or services already provided.

“Electronic Health Records can be key to an integrated health system providing improved care” said Derrick Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Putting patients at risk will result in intensive investigation and compliance obligations such as those in OIG’s comprehensive five-year Corporate Integrity Agreement.”

This matter was jointly handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Offices for the District of Vermont and Northern District of Georgia, the HHS Office of Inspector General, and multiple HHS agencies and components.  The Federal Bureau of Investigation’s field office in Atlanta, Georgia provided significant investigative support to the investigation.

The case is captioned United States v. Greenway Health, LCC, 2:19-CV-20 (D. Vt.).  The claims resolved by the settlement are allegations only, and there has been no determination of liability.

ATLANTA - Evelyn Katrina Taylor-Parks has been sentenced to federal prison for conspiring to accept bribe payments while she served as the City of Atlanta’s Deputy Chief of Staff to the Mayor.
 
“Let Ms. Taylor-Parks’ case be a warning to any and all public officials who abuse their power for personal gain, or for the benefit of their associates to the detriment of the taxpayers: we will thoroughly and appropriately investigate such criminal breaches of fiduciary duty and bring them to justice irrespective of the dollar amount of the ill-gotten gain,” said U.S. Attorney Byung J. “BJay” Pak.  

“Parks abused the trust placed in her by the people of the city of Atlanta,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI and its partners in law enforcement will not tolerate those who choose to try to influence established and proper government procedures. We would urge anyone who witnesses similar activity by public officials to contact the FBI.”

“In order to regain trust in our local government, we will continue to investigate and recommend criminal charges against those who engage in corrupt governmental practices,” said Thomas J. Holloman, Special Agent in Charge, IRS- Criminal Investigation. “The sentence handed down today should deter those who seek to peddle political influence and access for personal financial gain while in a public service position.”

According to U.S. Attorney Pak, the charges, and other information presented in court: From approximately January 2010 to May 2018, Parks served as the Deputy Chief of Staff to the Mayor of the City of Atlanta. As the Deputy Chief of Staff, Parks had various responsibilities, including managing core City of Atlanta operations, coordinating with the Mayor and the executive staff to execute the administration’s policies, and facilitating the procurement process.

In her position, Parks signed an annual Financial Disclosure Statement attesting that she was not self-employed or employed by any business or entity other than the City of Atlanta, and that she had not received more than $5,000 in annual income from any source other than the City of Atlanta. Parks executed the Financial Disclosure Statements under penalty of perjury in 2011, 2012, and 2013, stating she was not employed outside the City of Atlanta.

A vendor, who was an executive with a firm in Atlanta during Parks’ tenure as the Deputy Chief of Staff, sought work through his businesses with the City of Atlanta, and the City of Atlanta ultimately awarded one project to the vendor’s firm worth $99,999.

From late-2011 to mid-2013, Parks met privately with the vendor on multiple occasions. During these meetings, Parks and the vendor discussed various topics, including the vendor’s desire to obtain work with the City of Atlanta, the idea of sole-source contracting, and the process by which the vendor could obtain a sole-source contract with the City of Atlanta. At the time of these meetings, the vendor was actively seeking projects and work with Atlanta, and at times was performing work for the City of Atlanta.

The vendor paid Parks thousands of dollars and paid for various services on Parks’ behalf, while seeking work with the City of Atlanta. In return for these bribe payments, Parks knew that the vendor wanted her to use her position and power as the Mayor’s Deputy Chief of Staff to assist the vendor with the City of Atlanta’s contracting and procurement process, and to assist the vendor in the future when needed.

In exchange for accepting money from the vendor: 

1. Parks met regularly with the vendor, took the vendor’s calls, and responded to the vendor’s emails.

2. She organized and arranged meetings between the vendor and high-ranking employees within the City of Atlanta and with a member of the City Council.

3. Based on the high-level nature of her position, Parks knew that when she contacted City of Atlanta employees, on behalf of the vendor, those employees would feel compelled to comply with her requests.

4. Parks provided the vendor with information and advice regarding the processes and procedures to obtain a sole-source contract with the City of Atlanta.

5. She assisted the vendor in obtaining a City Council Resolution allowing the City of Atlanta to negotiate a sole-source contract with the vendor that was possibly worth millions of dollars. Parks believed that the vendor intended to use the resolution in an attempt to obtain government contracts outside of Atlanta.

6. She also facilitated and expedited the process for the vendor to receive payment for work the vendor had completed for the City of Atlanta.

In total, Parks admitted to taking bribe payments from the vendor on 7 or 8 occasions, where each bribe was between $1,500 and $2,000.  Parks also received from the vendor a Louis Vuitton handbag, a cruise to Mexico, and a trip to Chicago. Parks never disclosed her ongoing financial relationship with the vendor and/or the vendor’s firm on her Financial Disclosure Statements to the City Atlanta.  As a result, from January to July 2013, the City of Atlanta issued payments of $19,900, $11,750, $15,000, $17,200, and $36,149 to the vendor’s firm.  

On November 16, 2017 and on February 15, 2018, Parks was interviewed by the Federal Bureau of Investigation. During those interviews, Parks falsely stated that she had never taken money from the vendor.

On August 15, 2018, Evelyn Katrina Taylor-Parks, 49, of Douglas County, Georgia, pleaded guilty to a criminal information charging her with one count of conspiratorial bribery. Based on her conviction, Parks was sentenced to one year and nine months in prison to be followed by three years of supervised release and was ordered to pay approximately $15,000 in restitution. 

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

Assistant U.S. Attorney Jeffrey W.  Davis, Chief of the Public Integrity and Special Matters Section, and Assistant U.S. Attorney Jill E. Steinberg, Deputy Chief of the Criminal Division 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.

The U.S. Attorney for the Northern District of Georgia and the Special Agent in Charge Chris Hacker of the FBI Atlanta Field Office have released the following statements in regards to the arrest of Hasher Taheb:

U.S. Attorney Pak:

“Investigating and prosecuting individuals who seek to cause mass casualties is law enforcement’s top priority. Today, the Joint Terrorism Task Force partners, led by the FBI, arrested Hasher Taheb, 21, of Cumming, Georgia after a thorough investigation into his plans to attack federal buildings.  As articulated in the affidavit supporting the complaint, his alleged intent was to attack the White House and other targets of opportunity in the Washington DC area.   Mr. Taheb has been charged with violating Title 18USC 844(f)(1) -- attempt to damage by means of an explosive any building owned, possessed, or leased by the United States or any department or agency thereof, or any institution or organization receiving federal financial assistance.  The JTTF initiated the case after receiving a tip from the community.  Because the FBI, U.S. Secret Service, and numerous Federal, state and LE partners are active participants in the JTTF, all potential threats have been neutralized and under control from the inception of this case.  Again, I want to clarify that there were no threats posed to any targets located in Northern District of Georgia, nor was the upcoming Super Bowl a target of his alleged activity,” said U.S. Attorney Byung J. “BJay” Pak.

FBI Statement:

"It is important to point out that this investigation and arrest were the direct result of a tip from the community, another example of how important it is to contact law enforcement if you see or hear something suspicious," said Chris Hacker, Special Agent in Charge of FBI Atlanta. "Taheb is charged as the result of a year-long investigation by FBI Atlanta's Joint Terrorism Task Force. We want to thank the Forsyth County Sheriff Office and Gwinnett County Police Department for assisting us with his arrest. The investigation is continuing, but at this stage it is believed Taheb was acting on his own."

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. – Jermaine Courtney Brown, a member of the Gangster Disciples gang, has been sentenced to prison for possessing a firearm while a convicted felon.

“Brown’s criminal conduct and the behavior of other suspected members of his violent street gang plague our community and jeopardize the safety of our citizens,” said U.S. Attorney Byung J. “BJay” Pak. “We will continue to work closely with our law enforcement partners to combat gang violence and those who illegally possess firearms.”

“Brown clearly has not learned from prior convictions and continues to threaten the safety of our citizens,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI would like to thank the Cedartown Police Department for their diligence in arresting Brown once again. Because of their efforts Brown will have more time in prison to think about his future path.”

“The multi-jurisdictional cooperation encouraged and facilitated by Project Safe Neighborhoods is making a difference in the quality of life of our citizens. The Cedartown Police Department will continue to work with all our law enforcement partners to make our communities safer,” said Jamie Newsome, Chief of Police, Cedartown Police Department.

According to U.S. Attorney Pak, the charges and other information presented in court: On January 30, 2018, Cedartown Police Department officers observed Brown walking along an intersection in Cedartown, Georgia. The officers were familiar with Brown based on his prior contacts with law enforcement and his association with the Gangster Disciples, a well-known violent street gang suspected of being involved in numerous violent and drug-related crimes.  The officers were also aware of an outstanding failure to appear arrest warrant for Brown, stemming from an arrest in February 2017 for possessing a firearm as a felon.

Brown ran when he saw the officers and the officers pursued him on foot and by a patrol car. Brown threw away his cellphone and jacket as he ran, but they were later recovered.  After a short chase, Brown was apprehended. As the officers took Brown into custody, he stated that he was carrying a gun in his pants.  He also asked one of the officers, “can’t you just throw [the firearm] in the bushes? I already have too many charges on me.”

In addition to recovering a loaded Taurus Millennium PT145PRO .45 caliber semi-automatic handgun, the officers recovered approximately 26.9 grams of marijuana and a digital scale. A court authorized a search of Brown’s cellphone, which revealed photos of Brown and other suspected gang members as well as a photograph of Brown pointing directly into the camera a firearm with a drum magazine that typically holds approximately 100 rounds of ammunition. 

In addition to several misdemeanor convictions, Brown was convicted in 2008 of the felony offense of possession of cocaine in the Superior Court of Floyd County, Georgia. On March 19, 2018, Brown was also convicted in Floyd County, Georgia, of felon in possession of firearm for the February 2017 arrest.

Jermaine Courtney Brown, 28, of Cedartown, Georgia was sentenced January 10, 2019, to three years, one month in prison to be followed by three years of supervised release, and a $100 special assessment.  Brown pleaded guilty to the indictment on September 12, 2018, and was sentenced by U.S. District Judge Harold L. Murphy.

This case was investigated by the FBI and the Cedartown Police Department.

Assistant U.S. Attorney Suzette A. Smikle prosecuted the case.

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

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

ATLANTA – Federal agents arrested the last of seven, recently indicted members and associates of a national gang —the Gangster Disciples — on federal racketeering charges stemming from a superseding indictment returned on October 25, 2018 by a federal grand jury.  The newly arrested defendant, Antarious Caldwell, had been on the run since October.  Caldwell was arrested in Clayton County on January 9, 2019 based on a tip after media attention and billboards alerted the public to Caldwell’s wanted status.  Caldwell is now being held without bond. 

The superseding indictment added seven defendants, most of whom were high-ranking Gangster Disciples leaders, who resided across the United States, and charged them with a variety of federal offenses, including conspiracy to violate the federal racketeering statute (RICO conspiracy), narcotics trafficking, fraud and other offenses.

“This defendant was on the run since October, including allegedly leading police on a high-speed chase with an infant in his car before once-again escaping,” said U.S. Attorney Byung J. “BJay” Pak.  “The FBI caught up with Caldwell, showing that trying to hide from arrest is useless.  The superseding indictment adds to what the grand jury already found against the Gangster Disciples — that members allegedly commit numerous types of crimes, including murder, robbery, drug trafficking, and large-dollar fraud.”

"The FBI would like to thank the media and the Outdoor Advertising Association of Georgia (OAAG) for helping us with a publicity campaign that directly led to the arrest of Caldwell," said Chris Hacker, Special Agent in Charge of FBI Atlanta. "We would also like to thank the Clayton County Sheriff’s Office for assisting us in his arrest. The main objective of the FBI's Safe Streets Gang Task Force investigation is to dismantle the Gangster Disciples and we feel we have made significant progress toward that goal with an extensive series of federal indictments and arrests."

According to U.S. Attorney Pak, the charges, and other information presented in court:  Forty-one defendants were named in the indictments. The initial indictment, which included 34 defendants, was returned by the grand jury in April 2016. Since then nine defendants have entered guilty pleas in district court. The 2016 indictment alleged that defendants named in a RICO conspiracy charge committed murder, attempted murder, robbery, extortion, arson, firearm crimes, drug trafficking, wire fraud, bank fraud, credit card fraud, prostitution and obstruction of justice and other crimes in furtherance of the Gangster Disciples enterprise and to raise funds for the gang.  It also alleged that the Gangster Disciples were organized into different positions, including board members, who were national leaders, governors, assistant governors, chief enforcers, and chief of security for each state where Gangster Disciples were active; and coordinators and leaders within each local group. To enforce discipline among Gangster Disciples and adherence to the strict rules and structure, members and associates were routinely fined, beaten, and even murdered, for failing to follow rules.

The October 2018 superseding indictment maintained all those allegations, and added allegations of murder, robbery, drugs and fraud involving the seven new defendants.   The seven newly-indicted defendants, each named in the RICO conspiracy, were:

• Roy Farrell, 59, of Hattiesburg, Mississippi, held the rank of Gangster Disciples “Board Member.
   
• Mario Jackson, 38, of Jacksonville, Florida, held the rank of the Gangster Disciples “governor” of Florida and a national enforcer for the gang.
   
• Damien Madison, 32, of Denver, Colorado, was the Gangster Disciples “governor” for Colorado.
   
• Lawrence Grice, 32, of Houston, Texas, held the rank of a Gangster Disciples “governor” for Texas.
   
• Anthony Blaine, 36, of Smyrna, Georgia, was a recent Gangster Disciples “governor’ for Georgia.
   
• Antarious Caldwell, 25, of DeKalb County, Georgia, was a member of “HATE Committee,” an enforcement team for the Gangster Disciples.
   
• Condelay Abbitt, 34, of Birmingham, Alabama, was the personal assistant to a Gangster Disciples “board member.”

Members of the public are reminded that the indictment only contains charges.  Each 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 FBI, Internal Revenue Service Criminal Investigation, Cobb County Police Department, DeKalb County Police Department, and DeKalb County District Attorney’s Office, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Clayton County Sheriff’s Office.

Assistant U.S. Attorney Kim S. Dammers, Chief of the Organized Crime and Gang Section for the Northern District of Georgia, and Ryan K. Buchanan, Deputy Chief of the Violent Crime & National Security Section for the Northern District of Georgia, along with Conor Mulroe, Trial Attorney, of the Department of Justice, Criminal Division, Organized Crime and Gang Section, are prosecuting the case.

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

ATLANTA – On January 9, 2019, the first group of participants graduated from the U.S. Department of Justice’s new Project Safe Neighborhoods (PSN) prevention and reentry program (known as “A.C.E.S.”) at the Metro Reentry Facility. 

The PSN strategy in the Northern District of Georgia marries enforcement efforts with support of prevention and reentry programs to combat violent crime in a lasting way, including by engaging directly with offenders about the consequences of continuing violent behaviors and supporting locally based prevention and reentry efforts.

“This first graduating class from our PSN prevention and reentry program demonstrates how law enforcement can work collaboratively with community programs to connect with the most hard-to-reach populations and prevent violent crime,” said Byung J. “BJay” Pak. “We believe these graduates are on the right path to becoming productive citizens in our community.”

“We appreciate the support of our federal partners in assisting us with creating a safer Georgia,” said Timothy C. Ward, Interim Commissioner, Georgia Department of Corrections.  “This program provides a unique opportunity for these individuals to become productive members of their community upon release.”

“Our expectation is that the A.C.E.S. group will become the model of reentry in Georgia,” said Art Powell, founder of EGRESS Consultants and Services, LLC. “Our hope is that these men have prepared themselves to become Credible Messengers to others upon their release.  This unique group came from different gangs and criminal organizations, and yet did not have a single fight or issue during their six months together, an amazing accomplishment in itself.  They have now formed a bond of camaraderie and mutual support that we hope will become a movement!”

“The A.C.E.S. initiative is a true demonstration of the impact that credible messengers have on reducing crime and restoring communities,” said Deborah Daniels, co-founder of Offender Alumni Association. “A former offender helping another former offender move forward and leave the past behind is the heartbeat of the Offender Alumni Association.”

As part of the PSN program, the U.S. Attorney’s Office partnered with the Georgia Department of Corrections, EGRESS Consultants and Services, LLC, and the Offender Alumni Association, to implement the intensive 6-month long prevention and reentry program for selected young adult repeat offenders at the Metro Reentry Facility who are incarcerated for gun or gang-involved crimes.  The program relies upon the Credible Messenger model which utilizes individuals who have relevant life experiences (including their own prior involvement in the criminal justice system) to intervene with the program participants in a group setting. 

The program participants themselves chose to name their group “A.C.E.S.” (Adults Committed to Empowerment and Success).  Beginning in July 2018, twenty-two (22) A.C.E.S. participants met every week with Credible Messengers to learn how to make better and safer decisions, pursue their goals in preparing for reentry, repair relationships with family and community, and connect to educational, job readiness, and employment opportunities.  The Credible Messengers will also serve as mentors for ongoing one-on-one support for the participants upon release. The members of the group were recognized this week for their completion of the PSN program.

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

ATLANTA - Severiano Martinez-Rojas has been sentenced for his role in the sex trafficking of three victims.  The defendant is the fourth member of an Atlanta-based Mexican sex trafficking ring convicted for their roles in compelling young women from Mexico and Central America to engage in commercial sex.

"Sex trafficking is a form of modern-day slavery that exploits and traumatizes some of the most vulnerable members of our society,” said U.S. Attorney Byung J. “BJay” Pak.  “We stand united today with our colleagues at the Department of Justice, Eastern District of New York, and federal law enforcement partners, in applauding the courage of the three victims in this case who remained determined to see this prosecution to its conclusion. The lengthy prison sentence that this final defendant received is primarily the result of the valiant efforts of these human trafficking survivors to hold their traffickers accountable.”

“Human trafficking is disgraceful and unacceptable. The sentence demonstrates the Department of Justice’s unwavering commitment to combatting these crimes,” said Assistant Attorney General Eric Dreiband. “This sex trafficking enterprise was extensive and resulted in the abuse of young women and girls. The Civil Rights Division of the Justice Department is thankful for the hard work of the U.S. Attorney’s Office of the Northern District of Georgia, the FBI, and the Homeland Security Investigations team who helped deliver justice on behalf of the victims and survivors.”

"This case represents why sex trafficking is such a high priority matter for the FBI, our law enforcement partners, and the non-government agencies who provide assistance to those with nowhere else to turn,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “As one of the worst examples of human trafficking, this case should resonate with those who might consider this reprehensible criminal conduct acceptable. We urge anyone with information about human trafficking activities to contact authorities and help put an end to modern day slavery.”

According to U.S. Attorney Pak, the charges, and other information presented in court: Between 2006 and 2008, defendant Severiano Martinez-Rojas and co-defendants Arturo Rojas-Coyotl and Odilon Martinez-Rojas, lured the three victims into fraudulent romantic relationships using false promises of love, marriage, and legitimate work. They then arranged for others to smuggle the victims across the border into the United States.  Once illegally in the United States, the defendants used violence, threats, and intimidation to coerce the victims to perform countless commercial sex acts in the Atlanta area and Alabama, where defendant Severiano Martinez-Rojas also operated a brothel.

Severiano Martinez-Rojas, 53, of Mexico, was sentenced today by U.S. District Judge Edward R. Korman to 24 years, five months in prison for his role in the sex trafficking of three victims.  Defendant Severiano Martinez-Rojas was indicted in May 2013 but had remained a fugitive until his arrest in Mexico in November 2015 as part of a coordinated U.S.-Mexico bilateral enforcement action. The action also resulted in the arrests of seven other defendants in a related Eastern District of New York case. Martinez-Rojas was also charged, convicted, and sentenced in that case.  

Martinez-Rojas, and co-defendants Arturo Rojas-Coyotl and Odilon Martinez-Rojas, previously pleaded guilty to sex trafficking and were sentenced to 16 years and 21 years and 10 months in prison, respectively. Both defendants were also ordered to pay $180,000 in restitution to the victims.  A third co-defendant, Daniel Garcia-Tepal, pleaded guilty to alien harboring and received a sentence of time served.  

Since 2009, the Departments of Justice and Homeland Security have collaborated with Mexican law enforcement counterparts in a Bilateral Human Trafficking Enforcement Initiative to more effectively dismantle human trafficking networks operating across the U.S.-Mexico border, bring human traffickers to justice, restore the rights and dignity of human trafficking victims, and reunite victims with their children.  These efforts resulted in successful prosecutions in both Mexico and the United States, including U.S. federal prosecutions of more than 170 defendants in multiple cases in Georgia, New York, Florida, and Texas since 2009, as well as numerous Mexican federal and state prosecutions of associated sex traffickers.

The case was investigated by the FBI’s Atlanta Division and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Atlanta.  Assistance with the arrest and extradition of defendant Severiano Martinez-Rojas was provided by HSI New York’s Trafficking in Persons Unit, HSI Mexico City Attaché Office, the U.S. Attorney’s Office for the Eastern District of New York, the Department of Justice’s Office of International Affairs, the State Department, and Interpol.  The government of Mexico, including Mexico’s Procuraduría General de la República and Policía Federal, also played a prominent role in advancing the bilateral anti-trafficking enforcement efforts in this case.  

This case was prosecuted by Assistant U.S. Attorney Richard S. Moultrie, Jr., Chief of the Violent Crime & National Security Section for the Northern District of Georgia, and Deputy Director of Litigation Benjamin J. Hawk of the Civil Rights Division’s Human Trafficking Prosecution Unit.

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

Severiano Martinez-Rojas, 53, of Mexico, was sentenced on Friday by United States District Judge Edward R. Korman to over 24 years in prison for his role in the sex trafficking of three victims. The amount to be paid in restitution will be announced at a later date.

The defendant is the fourth member of an Atlanta-based Mexican sex trafficking ring convicted for their roles in compelling young women from Mexico and Central America to engage in commercial sex.  Co-defendants Arturo Rojas-Coyotl and Odilon Martinez-Rojas previously pleaded guilty to sex trafficking and were sentenced to 16 years and 21 years and 10 months in prison, respectively. Both defendants were also ordered to pay $180,000 in restitution to the victims.  A third co-defendant, Daniel Garcia-Tepal, pleaded guilty to alien harboring and received a sentence of time served.

“Human trafficking is disgraceful and unacceptable. Today’s sentence demonstrates the Department of Justice’s unwavering commitment to combatting these crimes,” said Assistant Attorney General Eric Dreiband. “This sex trafficking enterprise was extensive and resulted in the abuse of young women and girls. The Civil Rights Division of the Justice Department is thankful for the hard work of the U.S. Attorney’s Office of the Northern District of Georgia, the FBI, and the Homeland Security Investigations team who helped deliver justice on behalf of the victims and survivors.”

“Sex trafficking is a form of modern-day slavery that exploits and traumatizes some of the most vulnerable members of our society,” said U.S. Attorney Byung J. “BJay” Pak.  “We stand united today with our colleagues at the Department of Justice, Eastern District of New York, and federal law enforcement partners, in applauding the courage of the three victims in this case who remained determined to see this prosecution to its conclusion. The lengthy prison sentence that this final defendant has received in this case is primarily the result of the valiant efforts of these human trafficking survivors to hold their traffickers accountable.”

“This case represents why sex trafficking is such a high priority matter for the FBI, our law enforcement partners, and the non-government agencies who provide assistance to those with nowhere else to turn,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “As one of the worst examples of human trafficking, this case should resonate with those who might consider this reprehensible criminal conduct acceptable. We urge anyone with information about human trafficking activities to contact authorities and help put an end to modern day slavery.”

According to documents filed in court, between 2006 and 2008, defendant Severiano Martinez-Rojas and co-defendants Arturo Rojas-Coyotl and Odilon Martinez-Rojas, lured the three victims into fraudulent romantic relationships using false promises of love, marriage, and legitimate work. They then arranged for others to smuggle the victims across the border into the United States. Once illegally in the United States, the defendants used violence, threats, and intimidation to coerce the victims to perform countless commercial sex acts in the Atlanta area and Alabama, where defendant Severiano Martinez-Rojas also operated a brothel.

Defendant Severiano Martinez-Rojas was indicted in May 2013 but had remained a fugitive until his arrest in Mexico in November 2015 as part of a coordinated U.S.-Mexico bilateral enforcement action. The action also resulted in the arrests of seven other defendants in a related Eastern District of New York case. Martinez-Rojas was also charged, convicted, and sentenced in that case.

Since 2009, the Departments of Justice and Homeland Security have collaborated with Mexican law enforcement counterparts in a Bilateral Human Trafficking Enforcement Initiative. The Initiative seeks to more effectively dismantle human trafficking networks operating across the U.S.-Mexico border, bring human traffickers to justice, restore the rights and dignity of human trafficking victims, and reunite victims with their children.  These efforts resulted in successful prosecutions in both Mexico and the United States, including U.S. federal prosecutions of more than 170 defendants in multiple cases in Georgia, New York, Florida, and Texas since 2009, as well as numerous Mexican federal and state prosecutions of associated sex traffickers.

The case was investigated by the FBI’s Atlanta Division and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Atlanta.  Assistance with the arrest and extradition of defendant Severiano Martinez-Rojas was provided by HSI New York’s Trafficking in Persons Unit, HSI Mexico City Attaché Office, the U.S. Attorney’s Office for the Eastern District of New York, the Department of Justice’s Office of International Affairs, the State Department, and Interpol.  The government of Mexico, including Mexico’s Procuraduría General de la República and Policía Federal, also played a prominent role in advancing the bilateral anti-trafficking enforcement efforts in this case.

Assistant Attorney General Eric Dreiband of the Justice Department’s Civil Rights Division, United States Attorney Byung J. “BJay” Pak of the Northern District of Georgia, FBI Special Agent in Charge Chris Hacker, and Homeland Security Investigations Special Agent in Charge Nick S. Annan, announced the sentence.

The case was prosecuted by Assistant U.S. Attorney Richard S. Moultrie, Jr., Chief of the Violent Crime & National Security Section for the Northern District of Georgia, and Deputy Director of Litigation Benjamin J. Hawk of the Civil Rights Division’s Human Trafficking Prosecution Unit.

ATLANTA - Sandra J. Stevens, a/k/a Sandra J. Putnam, has pleaded guilty to making more than 325 personal charges totaling over $60,000 on government credit cards when she was a high-ranking member of the Georgia Bureau of Investigation (GBI).

“The GBI, law enforcement, and the public placed great trust in Stevens based on her high-ranking position and years of service,” said U.S. Attorney Byung J. “BJay” Pak.  “Stevens, however, betrayed that trust for material possessions.”

“Sandra Stevens took an oath to uphold the laws of the state of Georgia. Instead, she violated the public’s trust when she defrauded the government for personal gain. Public corruption will not be tolerated in Georgia and the GBI remains committed to working with our federal partners in these types of investigations,” said Interim GBI Director Scott Dutton.

According to U.S. Attorney Pak, the indictment, and other information presented in court: the GBI is a statewide agency that provided assistance to the criminal justice system in the areas of criminal investigations, forensic laboratory services, and computerized criminal justice information.

In October 1994, Stevens joined the GBI as an Intelligence Technician.  On June 3, 1999, after becoming a Special Agent, Stevens took an oath of office to support and defend the Constitutions of the U.S. and the State of Georgia; to maintain public trust and abide by the GBI’s Code of Ethics; and to obey the laws of the land and the regulations of the GBI. 

As a Special Agent with the GBI, Stevens held several prestigious and high-ranking leadership positions, including being the Special Agent in Charge of the Child Exploitation and Computer Crimes Unit, where she supervised approximately 25 GBI employees; and an Inspector of the Investigative Division, where Stevens supervised approximately 55 GBI employees. As the Inspector of the Investigative Division, Stevens earned more than $100,000 per year.

As a state agency, the GBI participates in Georgia’s Visa Purchasing Card (P-Card) Program.  P-Cards are credit cards provided to Georgia employees for official business purchases, such as: supplies, materials, equipment, and services for official use. State policy expressly prohibits using P-Card for personal purchases.  P-Card users are required to reconcile all purchases by electronically uploading receipts for each P-Card transaction.

In 1998, the GBI issued Stevens a P-Card for business-related purchases and expenses. As P-Card holder, Stevens signed an agreement stating that “under no circumstances will [she] use the Purchasing Card to make personal purchases, either for [her]self or for others.”

Nevertheless, from approximately May 9, 2013 to August 17, 2016, Stevens used her P-Card and the P-Cards of other GBI employees to make more than 325 unauthorized purchases of goods and services for her personal benefit or the personal benefit of others, including: a seven-piece dining set for $562.99, a corn hole game set for $229.99, two chaise lounge chairs for $399.99, and a 65-inch ultra HD smart television for $1597.99. Stevens also submitted altered receipts to the GBI in which she changed the description of the items purchased, the addresses to which the items were shipped, or both the item description and the shipping address.

For example, on May 27, 2016, Stevens used another GBI employee’s P-Card to order a $930.12 sofa from Amazon.com that was delivered to her home in Covington, Georgia. Subsequently, Stevens submitted a false receipt to the GBI in which she misrepresented the item description as 12 anti-spyware software discs, rather than a sofa, and misrepresented the shipping address as the GBI’s Headquarters in Decatur, Georgia, rather than her home address.

In total, the GBI paid over $60,000 for more than 325 unauthorized purchases made by Stevens on at least six GBI P-Cards. As a result of Stevens’s scheme to defraud, federal money from the U.S. Department of Justice and U.S. Department of Homeland Security grants was impacted.

On May 8, 2018, a grand jury charged Sandra J. Stevens, 46, of Covington, Georgia, with four counts of mail fraud and three counts of federal program theft.  On January 3, 2019, Stevens pleaded guilty to mail fraud.  

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

Assistant U.S. Attorneys Jeffrey W. Davis, Chief of the Public Integrity and Special Matters Section, and Jolee Porter 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.

GAINESVILLE, Ga. - Michael Lewis Bush has been arraigned on federal charges of producing, receiving, and possessing child pornography.  The defendant had thousands of images of children, including some he allegedly took himself.   

"This defendant allegedly produced and collected images portraying the sexual exploitation and abuse of young children,” said U.S. Attorney Byung J. “BJay” Pak. “It is essential that we target and remove from the community those individuals who pose such a great threat to our district.”

“Individuals who produce child pornography steal the innocence of children and re-victimize them each time the evidence of their exploitation is shared online,” said ICE Homeland Security Investigations Atlanta Special Agent in Charge Nick Annan. "This case shows HSI is actively working to identity and disrupt the trade of these illegal images, and also to identify and seek prosecution of the criminals who produce and possess them.”

According to U.S. Attorney Pak, the charges, and other information presented in court: Federal agents determined that Michael Bush purchased child pornography online on multiple occasions between 2015 and 2018. Those agents executed a search warrant at Bush's home in August 2018 and found multiple digital devices containing thousands of images and videos of child pornography. They also discovered that Bush took a series of pornographic photographs of an eleven-year-old child and saved them to his computer where he retained them for years.

Michael Lewis Bush, 49, of Talking Rock, Georgia, was arraigned before U.S. Magistrate Judge J. Clay Fuller.  Bush was indicted by a federal grand jury on November 14, 2018.  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 Jill E. Steinberg, Deputy Chief of the Criminal Division, 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.

ROME, Ga. – Tiffany Cook, a former Georgia Department of Corrections (GDC) officer, pleaded guilty to being paid by a prison inmate to smuggle methamphetamine and marijuana into Hays State Prison located in Trion, Georgia.

“Correctional officers compromise the safety of our nation’s prisons when they trade their badges for money,” said U.S. Attorney Byung J. “BJay” Pak.  “Prisons are supposed to be places where additional criminal activity is impossible, but this notion breaks down when officers participate in the crimes.”

“Cook not only betrayed the institution she was sworn to protect, she also betrayed every hard working corrections officer who upholds their oath every day,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Removing corrupt staff who violate their sworn duties as government employees and jeopardize the safety of fellow officers and inmates remains one of our main priorities.”

“The GDC does not tolerate actions of individuals who choose to bring discredit to the values of our agency and put their fellow Officers at risk,” said Timothy C. Ward, interim commissioner of the Georgia Department of Corrections.  “We appreciate the support of our federal partners in ensuring that justice will be served, and we are proud of those Officers involved who were diligent in stopping the introduction of dangerous contraband into one of our facilities.”

According to U.S. Attorney Pak, the charges, and other information presented in court: On May 17, 2010, Cook began working with the GDC as a correctional officer. Beginning in April 2017, Cook served as a correctional officer at Hays State Prison. Hays State Prison is located in Trion, Georgia in Chattooga County. The facility opened in 1990 and currently holds approximately 1,680 male prisoners.

In early July 2018, the GDC received information from an inmate that Cook was being paid to smuggle illegal drugs into the prison.  On July 9, 2018, Cook arrived at Hays State Prison to report for her regularly-scheduled shift. As Cook approached the time clock, correctional officers asked Cook to walk into a conference room. Following the request, Cook stated that she felt ill and wanted to leave the prison. Correctional officers detained and ultimately searched Cook.

Pursuant to their search, correctional officers recovered more than 118 grams of actual methamphetamine (with a purity of 90%), and more than 150 grams marijuana from Cook’s vaginal cavity and bra. After seizing the methamphetamine and marijuana, correctional officers placed Cook under arrest.

Tiffany Cook, 34, of Summerville, Georgia, was sentenced by Senior U.S. District Judge Harold L. Murphy to seven years, eight months in prison to be followed by five years supervised release.  On October 11, 2018, Cook was charged in a criminal information with one count of possession, with intent to distribute, a controlled substance.   

This case was investigated by the FBI and Georgia Department of Corrections.

Assistant U.S. Attorney Jeffrey W.  Davis, Chief of the Public Integrity and Special Matters Section, prosecuted the case.

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

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 United States filed a complaint seeking an order stopping Nancy Zak, Claud Clark III, EcoVest Capital Inc., Alan N. Solon, Robert M. McCullough, and Ralph R. Teal, Jr., from organizing, promoting, or selling an allegedly abusive conservation easement syndication tax scheme, the Justice Department announced today.

According to the complaint filed in the U.S. District Court for the Northern District of Georgia, the defendants’ scheme revolves around donations of conservation easements and corresponding tax benefits from those donations. Defendants also allegedly rely on grossly overvalued appraisals as part of their scheme.

“The Department of Justice is working with our partners in the Internal Revenue Service to shut down fraudulent conservation easement shelters, which in this case were based on willfully false valuations,” said Richard E. Zuckerman, the Tax Division’s Principal Deputy Assistant Attorney General. “Individuals investing in these schemes with benefits that seem too good to be true should ensure they are paying their proper federal income tax liability.”

 “When it comes to aggressive transactions marketed by unscrupulous advisors, we will take every enforcement option available, including civil and criminal penalties,” said Internal Revenue Service Commissioner Charles P. Rettig. “Cheating on your taxes will not be tolerated.”

Under the proper circumstances, the Internal Revenue Code allows a taxpayer to take a charitable donation deduction equivalent to the fair market value of a conservation easement, but only if certain requirements with respect to the donation of an interest in property for conservation purposes are satisfied. This deduction is referred to as the “qualified conservation contribution.”

The defendants allegedly organize, promote, and sell ownership interests in limited liability entities, referred to in the complaint as “conservation easement syndicates.” According to the complaint, at the time defendants organize, promote, and sell ownership interests in a conservation easement syndicate, the syndicate plans to donate a conservation easement on land it owns, and then claim a corresponding tax deduction for the “qualified conservation contribution.”

However, these syndicates lack economic substance and are shams. They only serve as a conduit to transfer overvalued and otherwise improper federal tax deductions to customers, according to the government’s complaint. Additionally, the complaint alleges the conservation easements promoted by the defendants do not meet the requirements for a “qualified conservation contribution” under the Internal Revenue Code.

According to the complaint, defendants knew, or had reason to know, that the statements they made to customers regarding the tax benefits were false or fraudulent. In this regard, the complaint alleges that defendants knew the syndicates that they promoted planned to donate a conservation easement but otherwise did not plan to engage in any ongoing business activity. The complaint also alleges that the only return on investment a customer could anticipate from “investing” in a syndicate was the tax benefit from the planned conservation easement donation, which was many times larger than the purported investment. The complaint further alleges that the defendants made or furnished gross valuation overstatements about the valuation of conservation easements and the corresponding tax deductions, or caused others to do so.

The suit alleges that defendants have organized, promoted, and sold at least 96 conservation easement syndicates resulting in the syndicates reporting over $2.0 billion of tax deductions from overvalued and improper “qualified conservation contributions,” and have passed those tax deductions through to the thousands of customers of defendants’ scheme, resulting in hundreds of millions of dollars of tax harm.

On December 23, 2016, the IRS issued Notice 2017-10, announcing that certain syndicated conservation easement transactions are listed transactions if entered into on or after January 1, 2010. Notice 2017-10 applies to those prospective investors who receive oral or written promotional materials offering the possibility of a charitable donation deduction of at least 2.5 times their investment. A typical transaction covered by Notice 2017-10 involves the advertised investment in a pass-through entity that owns real property or acquires real property for the purpose of encumbering the property with a conservation easement. 

In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.

ATLANTA - Fifteen defendants have been sentenced for their part in a ring that stole over $10 million in U.S. Treasury checks from the mail and then cashed them at Walmart and Kroger stores around the country using fake identifications.  The sentences ranged from two to ten years in prison for members of the ring.

“This sentencing marks a success for our multi-agency Stolen Treasury Check Task Force, which targets the widespread problem of U.S. Treasury check thefts in Georgia,” said U.S. Attorney Byung J. “BJay” Pak.  “Criminals who steal Treasury checks victimize senior citizens, the disabled, veterans, and hard-working taxpayers who have earned these funds and depend on them.  As this case shows, we will pursue these theft rings and hold them accountable regardless of how far away they go to cash the checks and avoid detection.”

“The success of this investigation can be directly attributed to the federal agencies that partnered with the Secret Service to bring this ring to justice,” said Special Agent in Charge Kimberly A. Cheatle, U.S. Secret Service, Atlanta Field Office. “It is immensely gratifying to see those who prey on the vulnerable prosecuted and sentenced for their crimes.”

“The collaborative investigative efforts by the Stolen Treasury Check Task Force resulted in the disruption of a criminal group engaged in an illegal financial scheme,” said David M. McGinnis, U.S. Postal Inspector in Charge of the Charlotte Division. “Criminals should take note that Postal Inspectors along with our law enforcement partners will vigorously pursue and bring to justice anyone who commits a crime against the U. S. mail system.”

“This check-theft scheme affected numerous innocent citizens, including Social Security beneficiaries, who have rightly earned government payments,” said SSA OIG Atlanta Field Division Acting Special Agent-in-Charge Gregory Wiggs. “We will continue to work with our law enforcement partners on similar investigations, and we thank the U.S. Attorney’s Office for prosecuting this significant case.”

“This case demonstrates our office’s commitment to protecting federal inmates, who were among the victims in this case, from fraudulent check schemes.  We thank and commend our law enforcement partners who worked tirelessly with us to ensure a successful result for the Stolen Treasury Check Task Force,” said Robert A. Bourbon, Special Agent in Charge of the U.S. Department of Justice Office of the Inspector General’s Miami Field Office.

“The United States Postal Service Office of Inspector General takes allegations of mail theft seriously and vigorously investigates these matters to protect the overall integrity of the Postal Service,” said Special Agent in Charge Imari R. Niles.

According to U.S. Attorney Pak, the charges and other information presented in court:  Maurice Shuler and Milton Minter received stolen U.S. Treasury checks that were taken from the U.S. Mail before reaching their intended recipients.  The checks included tax refund, Social Security, and veterans checks.  After receiving the checks, Shuler and Minter provided them to a network of check cashers who negotiated the stolen checks, mainly at Walmart and Kroger stores.  The defendants used fake driver’s licenses to pose as the check payees and forged the payees’ names on the back of the checks.  They also used other individuals’ Social Security numbers to cash the checks. 

In an effort to avoid detection, the defendants traveled to different states, including Alabama, Mississippi, Illinois, Michigan, Minnesota, Kentucky, Iowa, Louisiana, and Tennessee, to cash the stolen checks.  Over the span of four years, the ring was responsible for cashing over 6,000 stolen U.S. Treasury checks worth over $10 million.

Fifteen defendants have been sentenced as part of this case.  U.S. District Judge Timothy C. Batten, Sr. sentenced the following individuals:

• Maurice Shuler, a/k/a Fred, 29, of Atlanta, Georgia, was sentenced to seven years in prison to be followed by three years of supervised release, and ordered to pay $9.5 million in restitution.
• Sepater Ransom, 31, of Atlanta, Georgia, was sentenced to five years and one month in prison to be followed by three years of supervised release, and ordered to pay $550,000 in restitution.
• Angela L. Williams, 43, of Lithonia, Georgia, was sentenced to time served (she has served four years and 20 days), three years of supervised release, and ordered to pay $116,053.58 in restitution.  Williams has been in custody since November 28, 2014 on related charges in Mississippi.
   

Judge Batten previously sentenced the following 12 defendants:

• Milton Minter, a/k/a White Boi, 34, of Riverdale, Georgia, was sentenced to ten years in prison to be followed by three years of supervised release, and ordered to pay a $75,000 fine.
• Chucky Ransom, 45, of Blakely, Georgia, was sentenced to seven years in prison to be followed by three years of supervised release, and ordered to pay $550,000 in restitution.
• Damontdra Ransom, a/k/a Pop, 24, of Blakely, Georgia, was sentenced to two years and one day in prison to be followed by three years of supervised release, and ordered to pay $45,912.96 in restitution.
• Brian K. Hightower, a/k/a Big, 37, of Stockbridge, Georgia, was sentenced to two years and one day in prison to be followed by three years of supervised release, and ordered to pay $116,053.58 in restitution.  Hightower was also sentenced to prison in Mississippi on related state charges.
• Charles E. Bolton, Jr., a/k/a Lightpole Jones, 29, of Atlanta, Georgia, was sentenced to two years and eighteen days in prison to be followed by three years of supervised release, and ordered to pay $212,683.51 in restitution.  Bolton was also sentenced to prison in Mississippi on related state charges.
• Mariah C. Clark, 28, of Loganville, Georgia, was sentenced to two years and seven months in prison to be followed by three years of supervised release, and ordered to pay $208,423.51 in restitution.
• Lovely Richardson, 31, of Union City, Georgia, was sentenced to two years in prison to be followed by one year of supervised release, and ordered to pay $1,420 in restitution.
• Osiris O. Hernandez, 27, of Atlanta, Georgia, was sentenced to four years in prison to be followed by two years of supervised release, and ordered to pay $2,072 in restitution.
• Kimbela Jordan, 23, of Kankakee, Illinois, was sentenced to two years and six months in prison to be followed by three years of supervised release, and ordered to pay $35,040.15 in restitution.
• Raymon D. Gales, 29, of Atlanta, Georgia, was sentenced to four years in prison to be followed by three years of supervised release, and ordered to pay $207,392.36 in restitution.
• Jeremy Arnold, 32, of Riverdale, Georgia, was sentenced to two years and two months in prison to be followed by three years of supervised release, and ordered to pay $36,940.70 in restitution.
• Rodrekus R. Harris, 29, of Blakely, Georgia, was sentenced to two years and two months in prison to be followed by three years of supervised release, and ordered to pay $56,779.59 in restitution.
   

The remaining defendant, Gino Shuler, 31, of Atlanta, Georgia, is scheduled to be sentenced on January 9, 2018, before Judge Batten.

These sixteen defendants were previously charged in an 83-count indictment with conspiracy, theft of government money, and aggravated identity theft.  All of the defendants were convicted after pleading guilty to one or more counts of the indictment.

This case was investigated by the U.S. Secret Service; U.S. Postal Inspection Service; Social Security Administration, Office of the Inspector General; Department of Justice, Office of the Inspector General; and United States Postal Service, Office of the Inspector General.

Assistant U.S. Attorney Stephen H. McClain, Chief of the Complex Frauds Section, and former Assistant U.S. Attorney Christopher C. Bly 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 - Craig Alan Castaneda has been found guilty by a jury of traveling from San Diego to Atlanta to have sex with a nine-year-old girl and of enticing a minor to engage in illegal sexual activity.

“Prosecuting child predators is one of this office’s highest priorities,” said U.S. Attorney Byung J. “BJay” Pak. “We are proud of the work that our law enforcement partners do in pursuing these predators, and we remain steadfast in our commitment to work with them to bring these persons to justice.”

“This conviction is another example of the lengths child predators will go to prey on our children,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “It is also an example of the FBI’s determination to pursue them. We hope it also serves as a warning to predators who feel they can act out on the internet without fear of being caught.” 

According to U.S. Attorney Pak, the charges and other information presented in court: In early April 2015, an FBI agent acting in an undercover capacity posted an ad on Craigslist in which he portrayed himself as a mother in search of a “teacher” for her nine-year-old daughter. The defendant responded to the ad the next day and described his previous experience in molesting children, including a child as young as four years old. He also said that he was “grooming” (that is, preparing) another child to be molested but that the family had moved away a few months earlier.

The defendant continued to communicate with the undercover agent for the next several weeks, and he made plans to travel from San Diego, California, to Atlanta, Georgia. In one of his final communications with the undercover agent before boarding a plane, he instructed the mother to obtain sex toys and lubricant. FBI agents met the defendant when he arrived at the Hartsfield-Jackson International Airport in Atlanta on May 2, 2015, and arrested him.

Craig Alan Castaneda, 39, of Imperial Beach, Calif., was indicted by a federal grand jury in the Northern District of Georgia, June 2, 2015, on one count of traveling from another state to engage in sexual activity with a child under the age of 12 years, and one count of enticing a minor to engage in illegal sexual activity.

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.

Castaneda was convicted by a federal jury a three day trial.  Sentencing for Castaneda has not yet been scheduled.

This case is being investigated by the FBI.

Assistant U.S. Attorneys Nicholas Hartigan and Paul R. Jones 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.

ATLANTA - Yves Joseph Legault has been sentenced for coercing and enticing the production of child sexual exploitation images over the Internet.  The defendant preyed on children in both Mississippi and Georgia simultaneously.

“Legault’s determination to pursue lurid desires shows his lack of fear of the law and a willingness to harm children no matter how young they are,” said U.S. Attorney Byung J. “BJay” Pak.  “Predators use the Internet and social media sites to lure unsuspecting teens into their web of deceit.  Fortunately, our law enforcement partners adapt quickly to new methods these individuals use, and catch those who prowl the Internet to engage in sexual activity with minors.  Our office will continue to prosecute these cases, and we highly encourage parents to be actively involved in children’s social media activities and Internet use.”

“Predators like Legault are always lurking on line, and a threat to our children. Hopefully his sentencing will serve as a warning to all parents to monitor what their children are doing on the internet and on their cell phones,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Be assured the FBI's Violent Crimes Against Children unit and its Metro Atlanta Child Exploitation Task Force (MATCH) will use every investigative resource and remain vigilant for predators who pose a threat to children.”

According to U.S. Attorney Pak, the charges and other information presented in court: Beginning in approximately July 2017, Legault met a 13-year-old Marietta, Georgia, girl on the website Omegle, a free online and anonymous text and video chat tool.  After moving their communications to Google Hangouts, the defendant asked the teen to perform sexual acts on live video-streaming for him.  He eventually arranged to travel from Canada to Atlanta, Georgia, in order to have sex with the girl. 

On August 11, 2017, Legault was arrested after flying from Toronto, Canada into Atlanta’s Hartsfield Jackson Airport to have sex with the teen.  The 13-year-old girl’s mother had alerted agents with the FBI to the relationship after she intercepted a package he sent her daughter from Canada.  A federal grand jury charged Legault for this conduct on August 15, 2017.

During the pendency of the Atlanta case and upon further investigation, agents discovered that during this same time period, Legault was also engaged in coercive and enticing chat and message exchanges with an eight-year-old girl residing in Pascagoula, Mississippi.  Legault asked the girl to engage in sexually explicit behavior while the two were chatting over a live-streaming communication device.  He was subsequently charged in the Southern District of Mississippi with one count of coercing and enticing the production of child pornography.

Yves Joseph Legault, 54, of Ontario, Canada, has been sentenced to 16 years in prison to be followed by supervised release for life, a $200 special assessment, and he will be deported to Canada upon completion of his sentence.  Legault pleaded guilty to both federal cases in the Northern District of Georgia on September 18, 2018, was sentenced by U.S. District Judge Orinda D. Evans.

This case was investigated by divisions of the FBI in Georgia and Mississippi.

Assistant U.S. Attorney Skye Davis prosecuted the case.

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

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

ATLANTA – Emily Moerdermo Fu, a metro Atlanta realtor and businesswoman who defrauded clients out of over $22 million dollars over a two-year period, has been sentenced to seven years, three months for mail fraud.

“While Fu was a well-respected real estate and financial professional, she took advantage of her reputation and clients’ trust to defraud them,” said U.S. Attorney Byung J. “BJay” Pak. “In some cases she created fictitious closings and then pocketed the money. In other instances, she went through with the closing and used the property as collateral for unauthorized loans for her own benefit, meanwhile embezzling hundreds of thousands of dollars in managing such properties.” 

"This announcement serves as a reminder to scam artists who blatantly commit fraud that they will be held accountable through the judicial system,” said Scott D. Fix, Acting U.S. Postal Inspector in Charge of the Charlotte Division. “Postal Inspectors are committed to pursuing those individuals who violate the public’s trust and encourage customers to keep a watchful eye on their investments.”

According to U.S. Attorney Pak, the charges and other information presented in court: Fu operated Capital Management in Suwanee, Georgia, which offered a wide range of services to investors in commercial properties around metropolitan Atlanta, including investment recommendations, property financing and acquisition, and management services.  From 2004 to 2017, Fu established several investment companies for a group of clients for the supposed purchase of commercial real estate in Forsyth, Gwinnett, Fulton, and other metro counties. 

In November 2017, the investors discovered irregularities in the books of some of the investment companies and confronted Fu, who admitted to having embezzled around $930,000.  Through queries of county property databases and other investigations, it was determined that Fu had never followed through on several commercial real estate purchases, each valued in the millions of dollars. The properties included medical and shopping centers in Atlanta and across the northern metro area.  Fu represented to her victims that she had completed the closings and was managing the properties, when in fact she had diverted the loans and investment funds for these “ghost purchases” to her own purposes.  Fu had been a prominent real estate professional before she committed the fraud.

Emily Moerdermo Fu, 58, of Atlanta, Georgia, has been sentenced by U.S. District Judge Richard W. Story to seven years, three months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $22,043,640.67.   Fu pleaded guilty to mail fraud on July 12, 2018.

This case was investigated by the U.S. Postal Inspection Service.

Assistant U.S. Attorney Brian Pearce prosecuted the case.

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