Northern District of Georgia

ATLANTA - Silvia Sanchez Valverde, Rodolfo Orozco Aguilar, Priscilla Sibaja, Daniel Sibaja, and Elpelice Figueroa Rosales have pleaded guilty to conspiracies to commit mail fraud and money laundering for their roles in a sweepstakes scam that targeted the elderly.

“These defendants stole the life savings of dozens of elderly victims and received more than $3.5 million,” said U.S. Attorney Byung J. “BJay” Pak.  “These schemes unfortunately are all too common and citizens should be wary of contests that require upfront payments to receive a prize.”

“Scammers – whether U.S.-based or abroad -- who mistakenly believe they can avoid accountability for their criminal actions by transferring ill-gotten proceeds outside the country should know they are not immune from federal prosecution,” said Special Agent in Charge of ICE Homeland Security Investigations Atlanta Nick S. Annan. “This case shows an international border is no defense for those who defraud senior citizens, and HSI is committed to using its unique cross-border authority to investigate and hold accountable persons who commit such crimes.”

According to U.S. Attorney Pak, the charges and other information presented in court: From February 2016 through September 2017, dozens of victims, most of whom were elderly, 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, such as J.G. Services, RF Financial Services, and Master Builders. The victims would then mail 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 Rican bank accounts.

The defendants will appear before U.S. District Judge Leigh Martin May for sentencing as follows:

Rodolfo Orozco Aguilar, 44, of Costa Rica is scheduled to be sentenced on November 7, 2018, at 2:00 p.m.

Daniel Sibaja, 28, of Buford, Georgia is scheduled to be sentenced on November 15, 2018, at 10:00 a.m.

Elpelice Figueroa Rosales, 62, of Buford, Georgia is scheduled to be sentenced on November 19, 2018, at 10:00.

Silvia Sanchez Valverde, 47, of Buford, Georgia is scheduled to be sentenced on November 19, 2018, at 2:00 p.m.

Priscilla Sibaja, 21, of Buford, Georgia is scheduled to be sentenced on November 20, 2018, at 10:00 a.m.

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

Assistant U.S. Attorneys Kelly K. Connors and Cassandra J. Schansman are prosecuting the case.

The Department of Justice Elder Justice Initiative promotes investigations and prosecutions of financial scams targeting the elderly. For more information regarding the Elder Justice Initiative, please visit www.justice.gov/elderjustice. 

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

ATLANTA – Donte Deshawn Alston has been sentenced for the armed robbery of a Fifth Third Bank in Smyrna, Georgia, and for brandishing a firearm during the commission of that crime. 

“Alston threatened the life of a bank teller at gunpoint during this robbery then endangered the lives of other citizens and police officers during a dangerous high-speed car chase with law enforcement following the robbery,” said U.S. Attorney Byung J. “BJay” Pak. “His conviction and lengthy sentence resulted from a collaborative effort between federal and local law enforcement agencies that will allow Fifth Third Bank and its employees to put this traumatic chapter behind them.”

“This defendant’s complete disregard for the safety of innocent civilians is reprehensible,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Thankfully the quick response by officers from the Marietta Police Department, the diligence of FBI agents who investigated this case, and the U.S. Attorney’s Office who prosecuted this case, Alston’s victims can take solace that he will not be a threat to traumatize anyone else.”

“Robbery is the epitome of a premeditated violent crime and fleeing from the police at a high rate of speed endangers the community as well as police officers,” said Marietta Police Chief Dan Flynn. “I appreciate both our officers who placed themselves in harm’s way to capture this violent criminal and our federal partners who effectively used Project Safe Neighborhoods to protect our community.”

According to U.S. Attorney Pak, the indictment, and other information presented in court: On April 5, 2017, Alston robbed Fifth Third Bank in Smyrna at gunpoint then led police on a high-speed chase before hydroplaning into a fence. Alston entered the bank wearing a hooded sweater, black mask, and gloves. He fled the bank with approximately $2,500 in cash that he placed inside his backpack. Alston did not know that the bank’s funds included a GPS tracking device that allowed the Marietta Police Department (MPD) to immediately track the movement of a 2006 silver Chevy Aveo that he was driving.

Alston attempted to evade officers by speeding through a shopping center parking lot and local streets in excess of 70 miles per hour, before ultimately losing control of his vehicle in a residential neighborhood. Alston also tried to escape following the crash, but MPD officers apprehended him in a nearby wooded area. The officers recovered Alston’s backpack that contained a loaded firearm, the stolen bank funds, and the GPS tracking device.

Donte Deshawn Alston, 23, of Atlanta, Georgia was sentenced to 10 years, one month in prison, to be followed by three years of supervised release. Alston was convicted of the offenses of armed bank robbery and brandishing a firearm during a crime of violence after entering a guilty plea on May 1, 2018.

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

Assistant U.S. Attorney Dash A. Cooper prosecuted the case.

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

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

ATLANTA – The United States has filed a False Claims Act complaint against Charles C. Adams, M.D.; Charles C. Adams, M.D., P.C. d/b/a Full Circle Medical Center and Personal Integrative Medicine PLLC (the “Adams Defendants”).  The lawsuit alleges that the Adams Defendants were responsible for the submission of false claims to Medicare for medically unnecessary chelation therapy.

“When healthcare providers seek to defraud Medicare by billing for medically unnecessary services, they deplete the funds available to patients who are in need of legitimate medical procedures, while also putting their patients potentially at risk,” said U. S. Attorney Byung J. “BJay” Pak. “This complaint should serve as notice to others who consider similar practices that we will vigorously pursue them.”

“Medically unnecessary services waste millions in taxpayer dollars each year and undercut the public’s trust in the medical profession,” 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 continue to work with the Department of Justice to ensure the financial well-being of federal health care programs.”

The United States’ complaint alleges that, between November 2008 and September 2015, Dr. Adams undertook chelation therapy and administered the chelation drug edetate calcium disodium (EDTA) to Medicare beneficiaries who were not suffering from lead poisoning. Chelation therapy is a rarely used treatment that is generally only indicated for individuals suffering from lead poisoning and other forms of heavy metal poisoning.  EDTA, one of the drugs used in chelation therapy, is indicated only for lead poisoning and lead encephalopathy. 

Lead poisoning is diagnosed by determining whether the patient has had recent exposure to lead, and by testing the patient’s blood lead level (BLL).  A symptomatic adult patient should only be chelated if there is a significantly heightened BLL (e.g. in excess of 50 mcg/dL). Dr. Adams chelated patients with no lead detected in their blood, or with only exceedingly low BLLs (e.g., less than 2 mcg/dL).

Additionally, Dr. Adams admitted that he does not treat lead poisoning or any other type of heavy metal poisoning.  Nonetheless, he submitted hundreds of claims for Medicare beneficiaries for his use of EDTA.  Dr. Adams advertised chelation as “alternative” and “integrative” therapy that can be used as an “anti-aging” treatment, and as a way to “improve circulation problems, stimulate bone growth, improve cholesterol and lower blood pressure.” However, Medicare does not cover EDTA chelation therapy for alternative uses such as these.

The United States contends that these chelation treatments are contrary to the standard of care and medically unnecessary. EDTA has a black box warning indicating that it “is capable of producing toxic effects which can be fatal.”  Its adverse side effects include fever, chills, malaise, fatigue, myalgia, arthralgia, hypotension, cardiac rhythm irregularities, acute necrosis of proximal tubules (which may result in fatal nephrosis), nausea, vomiting, hypercalcemia, tremors, headaches, numbness and others.  Inappropriate use of EDTA risks these harms without benefit.

This matter was investigated by Assistant U.S. Attorney Paris Wynn with the U.S. Attorney’s Office for the Northern District of Georgia and the Department of Health and Human Services - Office of Inspector General.

The claims asserted against the defendants are allegations only and there has been no determination of liability. The lawsuit is captioned United States v. Charles C. Adams, M.D., et al., Civil Action No. 4:18-cv-00191-HLM (N.D.Ga. 2018).

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

ATLANTA – Dr. Joseph L. Burton, a former county and state medical examiner and forensic pathologist, has been sentenced to federal prison after pleading guilty to conspiring to illegally distribute opioid painkillers.  Dr. Burton was indicted along with seven other individuals in February 2018.  Four of Dr. Burton’s co-defendants have already been sentenced, and two more are awaiting sentencing after pleading guilty to similar charges. 

“As a medical professional, Dr. Burton violated both his legal and ethical responsibilities when he knowingly wrote hundreds of illegal opioid prescriptions in exchange for sexual favors,” said U.S. Attorney Byung J. “BJay” Pak.  “We will continue to work closely with our federal, state, and local law enforcement partners to hold those accountable who unlawfully distribute opioids in our community.” 

“Addressing the country’s prescription opioid epidemic continues to be one of DEA’s top priorities,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “Dr. Burton prescribed powerful opiate-based pills outside the normal course of professional practice in exchange for sexual favors. Correspondingly, DEA, its law enforcement partners and the U.S. Attorney’s Office used every available resource to ensure he was brought to justice for his egregious prescribing practices. He will now spend well-deserved time in prison.”

According to U.S. Attorney Pak, the indictment, and other information presented in court: Dr. Burton, a licensed physician, operated as a consulting pathologist to determine the medical causes of diseases and death.  Federal agents with the DEA began investigating Dr. Burton after agents with the Georgia Drug & Narcotics Agency and the Georgia Department of Public Health visited him in early 2017 and discovered that he was prescribing painkillers to a large number of patients without operating a medical clinic or regularly seeing patients.  Over a roughly two-year period beginning in July 2015, Burton wrote over 1,500 prescriptions for controlled substances – including over 1,100 prescriptions for opioid painkillers such as oxycodone, hydrocodone, and methadone – irrespective of any legitimate medical purpose and outside the normal course of professional practice.  These illegitimate prescriptions amounted to over 108,000 individual doses of opioids, including over 66,000 30 mg oxycodone pills.  Burton wrote the bulk of these prescriptions to women in exchange for sexual favors and romantic affection.  With his knowledge, many of the recipients of these prescriptions, in turn, sold or bartered the prescriptions.  The approximate street value of the oxycodone pills that Burton prescribed exceeds $2 million. 

Dr. Burton prescribed opioids to individuals without: diagnosing legitimate medical conditions, conducting medical exams, reviewing medical records, taking precautions for proper usage or drug screening, or, on occasion, ever meeting the recipients.  Several of Burton’s co-defendants, as well as other individuals who were not federally indicted, each engaged in a sexual relationship with Dr. Burton in exchange for prescriptions in their names, as well as the names of others.  These women would fill their prescriptions and sell the pills, and then obtain more prescriptions from Burton for other people, who paid them for getting the prescriptions.  Dr. Burton also supplied the co-defendants with blank prescriptions and instructed them on how to fill them out.         

Joseph Lawson Burton, 73, of Milton, Georgia, was sentenced to eight years in federal prison, to be followed by three years of supervised release on August 29, 2018.  Burton pleaded guilty on May 22, 2018 to conspiracy to unlawfully distribute and dispense controlled substances outside of the normal course of professional practice and without a legitimate medical purpose. 

The following co-defendants have also pleaded guilty or been sentenced:

●Jennifer Hunter, 29, of Acworth, Georgia, pleaded guilty to conspiracy to unlawfully distribute and dispense controlled substances on May 2, 2018.  Hunter’s sentencing is scheduled for September 11, 2018.

●Tiffany Willis, 26, of Cartersville, Georgia, was sentenced on August 15, 2018, to four years, seven months in prison, to be followed by three years of supervised release.  She pleaded guilty to conspiracy to unlawfully distribute and dispense controlled substances on May 2, 2018. 

●Michelle Danner, 45, of Acworth, Georgia, was sentenced on August 9, 2018 to five years, 10 months in prison, to be followed by three years of supervised release.  She pleaded guilty to conspiracy to unlawfully distribute and dispense controlled substances on May 15, 2018. 

●Jerry Stephens, Jr., 30, of Cartersville, Georgia, was sentenced on August 28, 2018 to four years in federal prison, to be followed by three years of supervised release. He pleaded guilty to one count of conspiracy to unlawfully distribute and dispense controlled substances and one count of distribution and dispensation of a controlled substance on May 8, 2018. 

●Rodney Kennedy, 63, of Cartersville, Georgia was sentenced on August 9, 2018 to two years, nine months in prison, to be followed by three years of supervised release.  He pleaded guilty to conspiracy to unlawfully distribute and dispense controlled substances on May 10, 2018. 

This case is being investigated by the DEA.  The case is part of a coordinated effort with the Acworth Police Department, Barrow County Sheriff’s Office, Bartow County District Attorney’s Office, Bartow County Sheriff’s Office, Cartersville Police Department, Cherokee County Sheriff’s Office, Cherokee County District Attorney’s Office, Clayton County Police Department, Cobb County Sheriff’s Office, Cobb County District Attorney’s Office, Cobb County Police Department, Fayette County Sheriff’s Office, Floyd County District Attorney’s Office, Floyd County Sheriff’s Office, Georgia Department of Community Supervision, Georgia Composite Medical Board, Georgia Drugs and Narcotics Agency, Gwinnett County Sheriff’s Office, Hall County Sheriff’s Office, Jonesboro Police Department, Oakwood Police Department, Paulding County Sheriff’s Office, and the Rome Police Department.   

Assistant U.S. Attorneys John T. DeGenova and C. Brock Brockington, Deputy Chief of the Narcotics & Dangerous Drugs Section are prosecuting the case.

This case was presented as a part of Operation SCOPE, (Strategically Combatting Opioids through Prosecution and Enforcement), an initiative that targets individuals who illegally prescribe opioids and drug traffickers who also distribute these dangerous and addictive drugs.

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 - Zachary Adam Johnson, a former postal employee, has been arraigned on federal charges for allegedly burglarizing a post office, stealing mail, and negotiating forged checks. Johnson was indicted by a federal grand jury on August 16, 2018. 

“Johnson allegedly abused his position as a former postal employee to exploit the U.S. mail system in order to steal identities and commit bank fraud, said U.S. Attorney Byung J. “BJay” Pak.  “We are determined to safeguard our citizens from identify theft, as well as protecting the integrity of the postal and banking systems from these types of schemes.”

“The U.S. Postal Inspection Service remains dedicated to the mission of protecting the nation’s mail system from criminal misuse,” said David M. McGinnis, Inspector in Charge of the Charlotte Division.  “By working together with the Snellville Police Department, we were able to apprehend a subject that stole for his personal financial gain. The public can rest assured that Postal Inspectors will continue to maintain America’s confidence in the integrity of the U.S. Postal Service.”

According to U.S. Attorney Pak, the charges, and other information presented in court: On June 26, 2018, Johnson was captured on a surveillance camera allegedly cashing a forged check at a SunTrust bank in Loganville, Georgia. On June 28, 2018, Johnson attempted to cash another forged check at a Regions Bank in Snellville, Georgia.  Alert bank employees at Regions Bank recognized that the account holder’s signature looked suspicious, and called their customer to confirm whether he had written the check.  After learning that the check was forged, the bank employees called the local police.  Johnson was arrested by the Snellville Police Department and later released on bond.  

While on bond, Johnson was captured twice on a surveillance camera, allegedly stealing letters and parcels from a U.S. Post Office on Oak Road in Snellville. A search of Johnson’s car revealed a large quantity of stolen mail.

Zachary Adam Johnson, 41, of Snellville, Georgia was arraigned before U.S. Magistrate Judge John K. Larkins, III on federal charges of bank fraud, aggravated identity theft, possession of stolen mail, postal burglary, and mail theft on August 28, 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. Postal Inspection Service.

Assistant U.S. Attorney Alana R. Black 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 – ACETO Corporation, an international company with a North American headquarters based in New York, has agreed to pay a civil settlement of $120,000 to resolve allegations that it violated the recordkeeping requirements of the Controlled Substances Act (CSA).  ACETO imports controlled substances to a warehouse in Atlanta and has agreed to additional oversight from the Drug Enforcement Agency.

“Importers have a responsibility to ensure that all controlled substances can be tracked through the distribution chain,” said U.S. Attorney Byung J. “BJay” Pak. “Our office is committed to preventing the diversion of controlled substances by enforcing the recordkeeping requirements of the Controlled Substances Act.”

Robert J. Murphy, the Special Agent in Charge of the Atlanta Field Division of the DEA said, “The mission of DEA’s Office of Diversion Control is to prevent, detect and investigate the diversion of controlled pharmaceutical and listed chemicals from legitimate sources. In this case, DEA Diversion investigators did an outstanding job of uncovering this importer’s negligence to conduct proper inventories, which led to a civil fine. DEA will continue to work hand in hand with its law enforcement partners and the U.S. Attorney’s Office to make sure that Importers are abiding by its regulations.”

The government alleges that ACETO failed to maintain complete and accurate records of all controlled substances, failed to maintain controlled substances records at its registered location, and failed to complete the required biennial inventory of controlled substances. The claims settled are allegations only, and there has been no determination of liability.

The CSA was enacted by Congress to deter the illegal importation, manufacture, distribution, possession, and improper use of controlled substances, including prescription medications, and requires individuals and entities registered with the DEA to maintain complete and accurate records of all controlled substances and security systems so that no controlled substances are lost, stolen, or inappropriately dispensed. Violations of the recordkeeping requirements subject DEA registrants to civil monetary penalties of up to $14,502 for each violation.

This case was investigated by the Drug Enforcement Administration.

The civil settlement was reached by Assistant U.S. Attorney Lena Amanti.

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.

 

ACETO Settlement Agreement

ACETO Settlement Agreement.pdf

ATLANTA - Charles Blackman, a/k/a Ralph Jones, and Quinton Williams were sentenced to federal prison by U.S. District Judge Amy Totenberg for altering the prices of merchandise, through an elaborate “ticket-switching scheme” at The Home Depot and Lowe’s on August 27, 2018.

“These defendants defrauded Home Depot and Lowe’s of merchandise valued in excess of $300,000 and $1 million, respectively,” said U.S. Attorney Byung J. “BJay” Pak.  “Security measures at The Home Depot helped uncover and stop this scheme before they could steal more.  It is unfortunate that the consumer pays the cost of these elaborate schemes in a higher cost of goods.”

“The U.S. Secret Service and our law enforcement partners work tirelessly to protect our nation’s electronic financial payment systems,” said Malcolm D. Wiley, Acting Special Agent in Charge of the U.S. Secret Service, Atlanta Field Office.  “Today’s sentences should serve as a reminder that criminals will not get away with using point of sale terminals to fund their criminal activities.”

According to U.S. Attorney Pak, the charges, and other information presented in court: Blackman and his associates allegedly switched or altered the prices of merchandise by changing the Universal Product Code (UPC), so the items could be purchased at a lower price and then returned for the actual, higher retail price.  They used false information and fake identifications to further their fraud.  Their alleged scheme was to cheat The Home Depot and Lowe’s out of the hundreds of thousands of dollars to be made on the price difference after returning the merchandise.

Charles Blackman, a/k/a Ralph Jones, 58, of Atlanta, Georgia was sentenced to three years, one month in prison, to be followed by two years of supervised release. He was also ordered to pay restitution in the amount of $1,269,621.00 to The Home Depot and Lowe’s.

Quinton Williams, 52, of Atlanta, Georgia, was sentenced to time served in prison, to be followed by two years of supervised release. He was also ordered to pay restitution in the amount of $269,515.00 to The Home Depot.

This case was investigated by the U.S. Secret Service. The Woodstock Police Department and Cherokee County District Attorney’s Offices contributed to this case.

Assistant U.S. Attorney Cassandra J. Schansman prosecuted the case.

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

ATLANTA - Monty Jack Stansell has been sentenced to federal prison after pleading guilty to stealing his deceased mother’s Social Security benefits.

“Stansell stole his deceased mother’s Social Security payments for six years, using the money to pay for his own personal expenses,” said U.S. Attorney Byung J. “BJay” Pak.  “Those who steal Social Security benefits threaten the integrity of the program and divert vital resources away from those who need them most.”

“The Social Security Administration Office of the Inspector General has no higher priority than the investigation and prosecution of those who violate the public’s trust by failing to report Social Security beneficiary deaths and continuing to receive the deceased’s benefits,” stated Special Agent-in-Charge Margaret Moore-Jackson.  “I’m grateful that the U.S. Attorney’s Office shares our determination to protect the integrity of the Social Security Administration’s programs for those who rely on them now and into the future.”

According to U.S. Attorney Pak, the charges and other information presented in court: Stansell’s mother died on April 1, 2008.  Her Social Security benefits continued to be direct deposited into a joint SunTrust bank account that she shared with Stansell after her death.  When investigators initially questioned Stansell, he claimed that he was unaware that his mother’s Social Security benefits were still being paid after her death.  Stansell admitted to spending money out of the account, but claimed that he never looked at bank statements. 

After investigators questioned Stansell a second time, he admitted that he received notice from the Social Security Administration in late 2008, informing him of his mother’s continued benefits.  Instead of notifying the Social Security Administration that his mother had died, Stansell continued to receive and spend her benefits on his own personal expenses.  In total, Stansell stole over $90,000 in Social Security benefits.

Monty Jack Stansell, 66, of Douglasville, Georgia was sentenced to one year, nine months in prison to be followed by three years of supervised release, and he was ordered to pay restitution in the amount of $93,872 on August 27, 2018.  Stansell was convicted on these charges on April 25, 2018, after he pleaded guilty.

This case was investigated by the Social Security Administration - Office of the Inspector General.

Special Assistant U.S. Attorney Diane C. Schulman 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 - Justin Tony Walker has been sentenced to federal prison for conspiracy to commit wire fraud and aggravated identity theft for fraudulently accessing bank accounts and transferring more than $1.3 million from financial institutions into accounts held by his co-conspirators. 

“Walker was crafty and knew no limits on how far he would go to commit fraud, even while on probation,” said U.S. Attorney Byung J. “BJay” Pak.  “We encourage citizens to regularly monitor their bank statements to ensure their accounts have not been compromised.”

“The FBI treats these types of financial crimes targeting individuals and the banking industry very seriously,” said J. C. “Chris” Hacker, Special Agent in Charge of the FBI Atlanta Division. “Anyone considering this type of criminal activity should take heed of the punishment imposed in this case.”

According to U.S. Attorney Pak, the charges and other information presented in court:  From July 2015 to March 2016, Walker ran a scheme to steal money from various financial institutions and their customers’ bank accounts by using fraudulently acquired personal information to impersonate the account holders.  

Walker contacted customer service representatives at financial institutions using the true account holders’ personal information.  He would then acquire additional information on customers’ accounts that he used to either take over existing accounts or create new accounts. Walker then would wire sums of money from these accounts to personal accounts held by his co-conspirators. Through this scheme, Walker defrauded financial institutions of more than $1.3 million.

Since 2007, Walker has been arrested on four separate occasions for various forms of fraud and identity theft, including financial transaction card fraud.  In 2011 and 2015, Walker violated his probation by committing additional acts of fraud and identity theft, and the conduct in this case was in contravention of a previous judicial sentence.

Justin Tony Walker, 29, of Lawrenceville, Georgia was sentenced to seven years in prison to be followed by two years of supervised release by U.S. District Judge Amy Totenberg on August 24, 2018.  He was also ordered to pay restitution in the amount of $514,979.56.  Walker pleaded guilty to the charges on May 29, 2018.

This case was investigated by the Federal Bureau of Investigation, with assistance from the Atlanta Police Department.

Assistant U.S. Attorney Bernita B. Malloy prosecuted the case.

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

ATLANTA – D'Asis Sheffield, 20, of Greenville, Ga., the final defendant of a five-member armed robbery conspiracy, was arraigned yesterday before United States Magistrate Judge John K. Larkins III following Sheffield’s arrest on federal charges of armed bank robbery and brandishing a firearm during a crime of violence. Sheffield and his four co-defendants, Antavious Bray, 29, of Greenville, Ga., Derrick Scott, 26, of Manchester, Ga., Dontavius Prather, 22, of Greenville, Ga., and Shaneka Copeland, 35, of Manchester, Ga., were indicted by a federal grand jury on August 15, 2018. 

“Sheffield attempted to evade capture after terrorizing innocent victims and endangering their lives during this armed robbery,” said U.S. Attorney Byung J. “BJay” Pak.  “Fortunately, thanks to the assistance of the public and the hard work of law enforcement, Sheffield and his co-defendants will now have to answer for their crimes. This case demonstrates that all citizens play an important role in keeping our communities safe.” 

According to United States Attorney Pak, the charges, and other information presented in court: Three of the defendants, Sheffield, Bray, and Scott, allegedly entered United Bank in Woodbury, Georgia, shortly after noon on June 28, 2018.  The robbers had covered their faces to disguise their identities, and they were armed with two handguns and a semi-automatic rifle. 

After entering the bank, the men ordered two bank employees to lie face down on the floor.  Bray allegedly stood over them with the semi-automatic rifle, while Scott and Sheffield pointed handguns at a teller and demanded that she fill a backpack with money. The men then exited the bank through a back door, but thanks to the quick response of the City of Woodbury Police Department, their getaway driver, Prather, fled before he could pick up Sheffield, Bray, and Scott. At that point, the three robbers ran into the nearby woods on foot.  

After hiding in a nearby house for several hours, Bray and Scott were captured by the FBI. Sheffield, the third robber, remained unidentified and at large until local news stations played a clip of him in the backyard of a residence without his face concealed by a mask. Several tipsters then identified Sheffield, who the FBI arrested shortly thereafter.

D'Asis Sheffield, Antavious Bray, Derrick Scott, and Dontavius Prather, were charged with armed bank robbery and brandishing a firearm during a crime of violence. Bray and Scott were additionally charged with possessing a firearm after having been convicted of a felony offense. Shaneka Copeland was charged with being an accessory after the robbery.

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

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

Assistant United States Attorney Bret R. Hobson 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 – Kai Brockington, the former operator of a bogus charity, was sentenced to federal prison for defrauding multiple large companies that donated hundreds of thousands of dollars.

“Brockington stole funds that could have gone to legitimate charities that helped those in need,” said U. S. Attorney Byung J. “BJay” Pak.  “His prison sentence is a just punishment for his greed.” 

“The FBI is hopeful that Brockington’s sentence will send a strong message to anyone who would try to take advantage of the benevolent intentions of donors,” said J. C. “Chris” Hacker, Special Agent in Charge of FBI Atlanta. “Brockington undermined every legitimate charity’s work to carry out humanitarian missions with his disregard for their generosity to satisfy his own personal greed.”

“Officials who operate non-profit entities designed to assist charitable endeavors hold positions of trust not only in their companies, but also in the eyes of the public and we at the IRS owe it to every American taxpayer to use all lawful means to identify and prosecute those who evade their taxes as well as engage in other financial crimes”, stated Gabriel L. Grchan, Acting Special Agent in Charge of the IRS Criminal Investigation St. Paul Field Office. “It is our hope that Brockington’s sentence sends the strong message that tampering with the integrity of our nation’s tax system will result in prison time."

“Charity fraud, like many financial crimes, erodes the integrity of honest, noble charitable organizations, and threatens the financial health of our communities,” said U.S. Postal Inspector in Charge Kevin Rho of the Denver Division. “This sentence is the culmination of a successful joint investigative effort to protect vulnerable individuals and businesses from charity fraud and its effect on our communities, by ensuring the integrity of the U.S. Mail.”

According to U.S. Attorney Pak, the charges, and other information presented in court: Brockington was the primary operator of “Our Genesis Project,” a non-profit entity that supposedly provided healthcare to underprivileged recipients.  In reality, Our Genesis Project never conducted any actual charitable work.  Beginning in 2013, Brockington caused employees of several large companies to falsely tell their employers that they had donated money to Our Genesis Project.  These large companies had programs that permitted their employees to donate money to a charity and request that the company match those donations.  As a result, the companies donated substantial sums of money to Our Genesis Project.

From 2013 through 2017, Brockington caused several large companies to donate approximately $668,000 to Our Genesis Project through their charity matching programs.  Instead of using these donations for charitable endeavors, Brockington spent the funds on himself and his family members, including purchases of jewelry and expensive clothing and shoes, trips to Italy and Disney World, as well as updates to the family home and other living expenses. 

During this time period, Brockington repeatedly filed false tax returns with the Internal Revenue Service, including false federal income tax returns that failed to account for the money he was earning from his scheme as well as returns that falsely claimed Our Genesis Project was spending the funds on community grants, community activities, and community expenses.  Additionally, Brockington filed for personal bankruptcy in 2015 and failed to disclose the substantial sums of money he had earned from this fraud scheme. 

Kai Brockington, 36, of Dallas, Georgia, was sentenced to three years, five months in prison, to be followed by three years of supervised release on August 22, 2018.  He was also ordered to pay restitution to the victim companies.  Brockington pleaded guilty to charges of mail fraud and willfully filing a false federal income tax return on May 23, 2018.

This case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service - Criminal Investigation Division, and the U.S. Postal Inspection Service. 

Assistant U.S Attorney Thomas J. Krepp prosecuted the case, with invaluable assistance from Assistant U.S. Attorney Timothy C. Rank of the U.S. Attorney’s Office for the District of Minnesota. 

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. - Matilda Lynn Prince has been sentenced to federal prison, after a jury convicted her of twenty-nine counts of healthcare fraud for filing fraudulent claims with Medicare and the Georgia Medicaid program for optometry and ophthalmology services that were never provided to patients.

“Prince will now spend time in federal prison for stealing over a million dollars from the Medicare and Medicaid programs by submitting fraudulent claims for services that were not performed,” said U.S. Attorney Byung J. “BJay” Pak.  “Prince diverted critical resources away from the elderly and low-income families who were most in need of care.”

“This sentence sends a clear-cut message to crooked providers who fraudulently bill government health care programs,” said Derrick L. Jackson, Special Agent in Charge for the U.S. Department of Health & Human Services - Office of Inspector General (OIG).  “The OIG and our law enforcement partners will continue to aggressively pursue these thieves to ensure they are held accountable.”

“Our Medicaid Fraud Control Unit remains committed to working with our federal partners to investigate and prosecute providers who attempt to steal from healthcare programs designed to provide treatment and care for those most in need,” said Georgia Attorney General Chris Carr.

According to U.S. Attorney Pak, the charges and other information presented in court:  Prince owned Pickens Eye Clinic in Jasper, Georgia and operated Eye Gallery 20/20 in Calhoun, Georgia. From September 2011 to February 2014, Prince submitted false claims to Medicare and Medicaid for optometry and ophthalmology services that were never rendered to patients.

Despite being previously excluded from the Medicare and Medicaid programs in September 2011 and informed of her ineligibility to be employed or involved with any entity that received Medicare or Medicaid funds, Prince operated under a company named Eye Gallery 20/20 to bill Medicare and Medicaid for services that were not rendered.  As part of the scheme, Prince targeted her advertising towards senior citizens and disabled populations in housing complexes and community centers, offering on-site eye exams and prescription glasses at no charge to patients on Medicare and Medicaid. Prince contracted with two licensed optometrists to provide basic eye exams.  The optometrists would sometimes travel with Prince to perform these exams.

Although the patients received only basic eye exams and measurements for prescription glasses, Prince often billed for complex ophthalmological procedures involving the surgical insertion of medical devices called “punctal plugs” into patients' tear ducts to treat dry eye conditions.  Prince then used the identities of the two licensed optometrists to bill Medicare and Medicaid repeatedly for this procedure.  On some occasions, she billed for the same patient as many as seven times on the same claimed date of service, even though the procedures were never performed.  Prince fraudulently submitted over $1.2 million in insurance claims to Medicare and Medicaid for services never rendered.

Matilda Lynn Prince, 42, of Mineral Bluff, Georgia was sentenced to three years, four months in prison, to be followed by three years of supervised release on August 22, 2018.  She was also ordered to pay restitution in the amount of $609,000. Prince was found guilty by a jury on January 9, 2018.

This case was investigated by the Department of Health and Human Services - Office of the Inspector General, and the Georgia Medicaid Fraud Control Unit.

Assistant U.S. Attorneys Bernita B. Malloy and Randy S. Chartash prosecuted the case.

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

ATLANTA – The Department of Justice and U.S. Drug Enforcement Administration (DEA) recently announced a proposed reduction for controlled substances that may be manufactured in the U.S. next year.  The proposal decreases manufacturing quotas for the six most frequently misused opioids for 2019 by an average ten percent as compared to the 2018 amount.

“In 2017, nearly 1,050 Georgians died as a result of opioid overdoses,” said U.S. Attorney Byung J. “BJay” Paky.  “We must continue to fight this epidemic on all fronts. The proposed decrease in opioid production is a step in the right direction to potentially save lives, while also minimizing the illegal distribution of these drugs within our community.”

“DEA recognizes we must fight this epidemic on multiple fronts,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division.   “This latest action is another tool to prevent others from falling victim to this deadly addiction to opioids.”

In setting the aggregate production quote (APQ), DEA considers data from many sources, including estimates of the legitimate medical need from the Food and Drug Administration; estimates of retail consumption based on prescriptions dispensed; manufacturers’ disposition history and forecasts; data from DEA’s own internal system for tracking controlled substance transactions; and past quota histories.  The DEA has proposed to reduce more commonly prescribed schedule II opioids, including oxycodone, hydrocodone, oxymorphone, hydromorphone, morphine, and fentanyl.

Ultimately, the revised limits will encourage vigilance on the part of opioid manufacturers, help DEA respond to the changing drug threat environment, and protect the American people from potential addictive drugs while ensuring that the country has enough opioids for legitimate medical, scientific, research, and industrial needs.

In 2016, the Centers for Disease Control and Prevention issued guidelines to practitioners recommending a reduction in the prescribing of opioid medications for chronic pain. In the last several years, efforts have been to educate practitioners, pharmacists, manufacturers, distributors, and the public about the dangers associated with the misuse of opioid medications and the importance of proper prescribing.

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.

 

Aggregate Production Quota for Opioids

Aggregate Production Quota for Opioids.pdf

ATLANTA - Evelyn Katrina Taylor-Parks has pleaded guilty to conspiring to accept bribe payments while serving as the City of Atlanta’s Deputy Chief of Staff to the Mayor for approximately eight years.

“Parks was trusted to serve the citizens of Atlanta, but opted instead to betray that confidence when she accepted bribes from a vendor,” said U.S. Attorney Byung J. Pak. “Unfortunately, she is not alone.  Parks represents the fifth defendant to enter a guilty plea in this investigation.  We remain resolute in our commitment to root out those who seek to profit personally at the expense of the public’s trust.”

“Parks plea should strike fear in any public official who chooses to cash in on the trust of the people they are sworn to serve,” said J. C. Hacker, Special Agent in Charge of FBI Atlanta. “Though a bribe to make easy money may be tempting, know this: Public corruption investigations are a top priority for the FBI and we are committed to holding accountable anyone who chooses to disregard the public’s trust.”

“Parks must be held accountable for her crimes in order to restore public trust in city governance,” said Thomas J. Holloman, Special Agent in Charge of the IRS-Criminal Investigation.  “IRS-CI will continue to leverage its skilled workforce in partnership with the U.S. Attorney’s Office to eradicate public corruption by recommending prosecution on any elected official or employee involved in criminal activity under the guise of serving the public.”

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, Georgia. 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 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. 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.

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

4.  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.

5.  She also facilitated and expedited the process for the vendor to get paid for work the vendor had completed for the City of Atlanta.

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.  In total, 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 8, 2018, Evelyn Katrina Taylor-Parks, 49, of Douglas County, Georgia, was charged in a criminal information with one count of conspiratorial bribery.

This case is being investigated by the Federal Bureau of Investigation 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 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 - Octaveon Woods has been sentenced after pleading guilty to defrauding colleges, music festivals organizers, and others by claiming that he was a booking agent for famous musicians such as Migos, Lil Yachty, and Post Malone. Woods continued to operate the scheme even after he pleaded guilty in this case.

“Woods convinced dozens of victims to pay him almost a million dollars to ‘book’ artists for concerts and festivals, when he had no relationship with the artists at all,” said U. S. Attorney Byung J. “BJay” Pak. “Woods will now face the consequences of his actions and his victims will receive a measure of justice.”

According to U.S. Attorney Pak, the charges and other information presented in court: Woods owned and operated several companies, including Global Talent Agency, GTA Bookings, and National Artist Agency, that claimed to be booking agencies in the entertainment industry. Woods advertised that these agencies represented dozens of famous musicians, comedians and other artists, including hip-hop and rap artists Migos, Lil Yachty, and Post Malone.

Student groups at Emory University, the University of Missouri, and victims overseas hired Woods’s fake companies to book artists for concerts and festivals. In reality, Woods had no relationship with the artists. After his victims wired him money to book the concerts, Woods transferred the funds to other accounts and then made cash withdrawals. Hours after he pleaded guilty in April 2018, Woods continued to lure more victims into transferring him money for concerts that were never going to happen.

Octaveon Woods, 27, of Decatur, Illinois was sentenced to three years, 10 months in prison to be followed by three years of supervised release on August 10, 2018.  Woods was convicted of the charges on April 16, 2018, after he pleaded guilty.

This case was investigated by the U.S. Department of Education, Office of the Inspector General.

Assistant U.S Attorney Lynsey Morris 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 – Olayinka Olaniyi, a citizen of Nigeria, was convicted by a federal jury on August 9, 2018, after a three-day trial, on charges of conspiracy to commit wire fraud, computer fraud and aggravated identity theft.  Co-defendant, Damilola Solomon Ibiwoye, pleaded guilty to similar charges and was sentenced on January 31, 2018. 

“These defendants used trickery to lure and exploit their unsuspecting victims, but they will now face the consequences of their scheme in federal prison,” said U.S. Attorney Byung J. “BJay” Pak.  “We are grateful for the collaborative work by our national and international law enforcement partners in this case, and we will continue to vigorously prosecute cybercriminals who hide behind the anonymity of the internet to commit these types of crimes.”

“The FBI is determined to arrest criminals who believe they can hide out on the internet, protected by geographic boundaries, and prey on the American people and our institutions,” said J. C. “Chris” Hacker, Special Agent in Charge of the FBI Atlanta Division. “This case clearly shows the benefits of global cooperation between the United States and international law enforcement.”

“We were proud to support our federal partners in bringing down this criminal enterprise,” said Georgia Attorney General Chris Carr.  “We will remain vigilant in investigating and prosecuting all who attempt to defraud honest, hard-working Georgians.”

According to U.S. Attorney Pak, the charges, and other information presented in court: Olaniyi and Ibiwoye were behind several “phishing scams” that targeted colleges and universities in the United States, including the Georgia Institute of Technology (“Georgia Tech”) and the University of Virginia.  While both are Nigerian citizens, they committed their crimes while living in Kuala Lumpur, Malaysia, and were extradited to the United States to face these charges.

A “phishing scam” is the act of sending fraudulent emails that appear to come from legitimate enterprises for the purpose of tricking the recipients into providing personal information, including usernames and passwords.  Olaniyi and Ibiwoye directed phishing emails to college and university employees.  Once they had possession of employee logins and passwords, they were able to steal payroll deposits by changing the bank account into which the payroll was deposited.  Also, while logged into the university system through the stolen logins and passwords, these defendants were able to gain access to employee W2 forms, which they used to file fraudulent tax returns.  The attempted theft was over $6 million. 

The stolen funds were routed into U.S. bank accounts, and the evidence showed that access to these bank accounts was acquired through the use of romance scams, where fraudsters pose on dating sites and apps as potential partners to gain the trust of their victim.  At some point, the fraudster will make a request to deposit money into their victim’s account and claim to need all of the account information, including their account number, routing number, passwords, and answers to security questions.  In this case, all of that information was then used to funnel the proceeds of theft through those accounts and out of the country. 

Olayinka Olaniyi, 34, of Nigeria is scheduled to be sentenced on October 22, 2018, at 10:00 a.m., before U.S. District Judge Steve C. Jones.

Damilola Solomon Ibiwoye, 29, of Nigeria was sentenced to three years, three months in prison to be followed by three years of supervised release on January 31, 2018.

This case was investigated by the Federal Bureau of Investigation.

Assistant U.S. Attorney Jeffrey A. Brown, Deputy Chief of the Complex Frauds Section, and Special Assistant U.S. Attorney Laura D. Pfister prosecuted the case.

ATLANTA - Chalmer “Chuck” Detling, II has been arraigned on seven counts of wire fraud and eight counts of aggravated identity theft.  Detling was indicted by a federal grand jury on August 8, 2018, for using the identities of 36 former clients without their knowledge or authorization in order to apply for and obtain 50 fraudulent litigation advances, totaling hundreds of thousands dollars.

“Lawyers are supposed to assist their clients, not use their identities to commit fraud.” said U.S. Attorney Byung J. “BJay” Pak.  “Detling allegedly violated his ethical and fiduciary duties by using his clients’ personal information to apply for litigation advances in their names.  He then kept the money for himself.”

“Detling’s alleged actions displayed a complete disregard for his clients by stealing their identities to enrich himself,” said J. C. “Chris” Hacker, Special Agent in Charge of FBI Atlanta. “The FBI will continue to hold those accountable who choose to exploit their trusted positions for their own personal financial gain.”

According to U.S. Attorney Pak, the charges, and other information presented in court: Detling was admitted to the State Bar of Georgia in 2004. In May 2012 through December 2016, Detling was the owner and operator of the Detling Law Group, a law firm based in Marietta, Georgia. Detling primarily engaged in personal injury law.  On October 31, 2016, the Supreme Court of Georgia accepted Detling’s petition for voluntary surrender of his license. He is no longer licensed to practice law in the State of Georgia.

Various financing companies offer “litigation advances” to cover non-litigation related expenses (e.g., living and medical expenses) for plaintiffs who typically have a pending personal injury or worker’s compensation lawsuit.  Typically, a plaintiff applies for litigation advance financing by submitting a signed financing agreement that includes, among other things, the amount of money being advanced to the plaintiff and a repayment schedule. Although the financing agreement contemplates that a plaintiff will repay the litigation advances with interest, the litigation financing entities do not consider such financing to be “loans.” Instead, they characterize the financing as “investments” or “advances” because a plaintiff who has no recovery would not be obligated to repay the litigation financing entity.  The litigation advances typically range from several hundred to several thousand dollars.

From October 2014 through April 2016, Detling allegedly devised a scheme to defraud several litigation financing entities by obtaining fraudulent litigation advances in the names of his law firm’s clients without the clients’ knowledge or authorization. During this period, Detling allegedly obtained 50 fraudulent litigation advances totaling more than $383,000 in the names of 36 clients.  Detling applied for the fraudulent litigation advances using personal identifying information of his clients, including their names and Social Security numbers.  He allegedly submitted applications that were purportedly signed and executed by his respective clients, but Detling knew when he submitted the agreement paperwork that the clients had not actually executed the agreements.  Detling was able to secure these fraudulent litigation advances without his clients’ knowledge in part because the litigation financing entities did not require the clients to be present when applying for the litigation advances or receiving the disbursements.

In order to further conceal that he applied for and received the fraudulent litigation advances, Detling allegedly had the loan proceeds wired directly to his law firm’s Interest on Lawyer Trust Account (“IOLTA”) or he personally picked up checks from the lending entity and deposited the funds into the IOLTA account.  The fraudulently obtained litigation advances would then be transferred from the IOLTA account to Detling Law Group’s operating accounts or other Detling Law Group accounts.  Detling allegedly further concealed that he applied for and received the fraudulent litigation advances in his clients’ names without their knowledge or authorization by often providing inaccurate contact information to the litigation financing entities for the clients who were purportedly seeking the litigation advances. This included providing fake phone numbers and/or email addresses in the financing applications.

Chalmer “Chuck” Detling, II, 42, of Marietta, Georgia was arraigned before U.S. Magistrate Judge Catherine M. Salinas on seven counts of wire fraud and eight counts of aggravated identity theft on August 10, 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 Federal Bureau of Investigation with assistance from the State Bar of Georgia.

Assistant U.S. Attorneys Alex R. Sistla and John S. Ghose 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 - Abdulrahman Tijani has been sentenced for his role in a scheme to file fraudulent tax returns, using the stolen personally identifiable information (PII), such as dates of birth and Social Security numbers of taxpayers.  Tijani then used some of the funds to pay fees for his immigration application, in which he made false representations concerning prior crimes. 

“Tijani victimized numerous taxpayers by filing fraudulent tax returns with their stolen identities,” said U.S. Attorney Byung J. “BJay” Pak.  “He then used some of the stolen funds to pay for his immigration application fees, on which he denied committing any crimes.  Tijani is now headed to federal prison for his role in this scheme, and he will be turned over to the Department of Homeland Security for potential deportation proceedings.”

“The Treasury Inspector General for Tax Administration remains committed to investigating and pursuing all criminal abuses of the federal system of tax administration, including the digital tax administration system,” said J. Russell George, Treasury Inspector General for Tax Administration. “Let this case serve as a warning to others who are interested in exploiting the Internal Revenue Service’s computer systems to commit identity theft and other forms of criminal activity.  I wish to thank my investigators for their excellent work on this case and the U.S. Attorney’s office for helping bring this individual to justice.”

According to U.S. Attorney Pak, the charges and other information presented in court: Tijani was a member of a group which used stolen PII to file fraudulent tax returns with the IRS. He then directed the refunds into fraudulently obtained bank accounts or debit cards.  Between February 16, 2015 and April 6, 2015, 47 fraudulent returns were filed, which totaled $265,960 in attempted tax refunds. The IRS flagged 35 of these returns as being potentially fraudulent.

An email account linked to Tijani was used in connection with obtaining a fraudulent refund in the amount of $6,063.10 from a victim in Gretna, Louisiana. The refund was deposited into a bank account on March 13, 2015. On the same day, Tijani withdrew $791.65 from this account to pay for his federal immigration application fees. He then falsely answered “no” on the application to the question asking whether he had committed a crime of moral turpitude for which he had not been arrested.

Another email account linked to Tijani was used to open a separate bank account where another fraudulent refund was directed. Two telephone numbers associated with Tijani were then used to conduct balance checks on the account.  The investigation also revealed that Tijani downloaded stolen files containing victims’ PII from a New York tax firm.

Abdulrahman Tijani, 41, of Lawrenceville, Georgia was sentenced by U.S. District Judge Mark H. Cohen to four years in prison, to be followed by three years of supervised release. He was also ordered to pay restitution in the amount of $50,221. Tijani pleaded guilty on March 30, 2018 to theft of public money, aggravated identity theft, and making a false statement on his immigration application.  

The case was investigated by the Treasury Inspector General for Tax Administration (TIGTA).

Assistant U.S. Attorney Michael Herskowitz, Deputy Chief of the Organized Crime and Gang Section, prosecuted the case.

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

ATLANTA – Eric Powell and Ahmad McCormick, former owners and operators of National Vocation Group, who lured hundreds of job-seekers into paying for needless pre-employment certification training have been sentenced to federal prison for wire fraud.

“Powell and McCormick used their job-staffing company to dupe hundreds of victims into paying high fees for unnecessary training,” said U.S. Attorney Byung J. “BJay” Pak.  “The defendants further harmed their victims when they did not produce the jobs that were promised to them.

“Erick Powell and Ahmad McCormick deceived victims into believing they were applying for legitimate jobs that required certain Occupational Safety and Health Administration certifications when, in fact, they were not,” said Rafiq Ahmad, Special Agent in Charge, Atlanta Regional Office, U.S. Department of Labor, Office of Inspector General.  Powell and McCormick used phony online job postings to lure unsuspecting applicants into fraudulently paying their company for unnecessary OSHA training certifications. We will continue to work with OSHA and our law enforcement partners to investigate those who prey on legitimate job seekers.”

According to U.S. Attorney Pak, the charges, and other information presented in court:  From August 2015 through October 2015, Powell and McCormick operated a fraudulent job-staffing company in Atlanta called National Vocation Group (NVG). Powell and McCormick used Indeed.com and ZipRecruiter.com to advertise available jobs in the housekeeping and maintenance industries that paid above-average wages.  The advertisements falsely represented that NVG had existing contracts with commercial cleaning companies throughout the Atlanta area; that the jobs paid above-average wages of up to $17 per hour; and that NVG could place its clients in these high-paying jobs.

When NVG’s job applicants were interviewed by Powell, McCormick, and other employees of NVG, the applicants were told that they would have to pay $349 for certain Occupational Safety and Health Administration (OSHA) training prior to being hired for the advertised jobs. The applicants were falsely told that federal law required housecleaning and maintenance workers to take the OSHA General Industries Course before starting work in the advertised jobs.  Hundreds of applicants paid the $349 fee and took the OSHA course as required, but none of those applicants received the high-paying jobs they were promised.

Several victims notified law enforcement, while others notified local media outlets regarding NVG’s practices.  NVG relocated its offices from downtown Atlanta to East Point, Georgia, where the defendants continued their fraudulent activities.  The company eventually disbanded in mid-October 2015, although both McCormick and Powell continued operating other fraudulent job-staffing companies after NVG ceased operating. 

Erick Powell, 30, of New Windsor, New York, was sentenced today to two years in prison to be followed by three years of supervised release. On December 11, 2017, after a four-day trial, a federal jury returned a verdict convicting Powell on one count of substantive wire fraud.  The jury acquitted Powell on the other counts.

Ahmad McCormick, 32, of Brooklyn, New York, was sentenced to three years in prison, to be followed by three years of supervised release on July 2, 2018. McCormick pleaded guilty to wire fraud conspiracy on August 31, 2017. 

This case was investigated by the U.S Department of Labor, Office of the Inspector General. The East Point Police Department also provided assistance.

Assistant U.S. Attorneys John S. Ghose 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.

An Atlanta, Georgia resident pleaded guilty today to one count of aggravated identity theft for her role in a stolen identity refund fraud scheme, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Byung J. Pak for the Northern District of Georgia.

According to documents and information presented in court, Stephanie Parker worked for the Internal Revenue Service (IRS) as a Contact Representative in Atlanta, Georgia.    Between September 2012 and March 2013, taxpayers called into the IRS for assistance and Parker handled the taxpayers’ inquiries.  During the calls, Parker obtained the taxpayers’ Social Security numbers and addresses.  On at least five occasions, Parker used the taxpayers’ personal information to electronically file fraudulent tax returns in their names without their authorization.  Parker directed the fraudulent tax refunds to bank accounts controlled by her friends.  Parker, in turn, had the money withdrawn from at least one of those accounts and deposited a portion of the money into her own bank account and used it for personal expenses.

Parker faces a mandatory sentence of two years in prison, as well as a period of supervised release, restitution and monetary penalties. A sentencing date has not yet been scheduled.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Pak commended special agents of IRS–Criminal Investigation and Treasury Inspector General for Tax Administration (TIGTA), who conducted the investigation, and Trial Attorneys Michael Boteler, Alexander Effendi, and Melanie Smith of the Tax Division, who are prosecuting this case.

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.  

GAINESVILLE, Ga. – Twin brothers, Kecole Dukes and Kemeca Dukes, have been sentenced for conspiracy to distribute and distribution of crack cocaine.

“Crack cocaine continues to be a scourge in our communities – particularly in North Georgia,” said U.S. Attorney Byung J. “BJay” Pak. “These defendants have multiple state convictions for distributing crack cocaine in the past. Their sentences today demonstrate the serious consequences that career drug dealers face when they are convicted in federal court.”

  “The distribution of narcotics, like crack cocaine, fuels violent crime in our community,” said ATF Special Agent in Charge Arthur Peralta. “The Dukes brothers could have chosen a different life path, but unfortunately they did not.  ATF will continue to focus on the reduction of violent crime in our communities and this sentence should serve as a warning to anyone who chooses to support or engage in violent crime.  ATF, along with our federal and state partners, will find you and we will arrest you.”

According to U.S. Attorney Pak, the charges and other information presented in court: From August 2015 to October 2016, Kemeca Dukes and Kecole Dukes, who are twin brothers, conspired to sell crack cocaine on multiple occasions to informants working for ATF and the Hall County Multi-Agency Narcotics Squad (MANS) Unit. Kemeca Dukes was the primary contact for the informants and sold varying quantities of crack cocaine to them on 10 occasions. Kecole Dukes sold or provided crack cocaine to the informants on three occasions and acted as a lookout for his brother on other occasions when Kemeca Dukes met with the informants to sell them crack cocaine.

At the time, both Kemeca Dukes and Kecole Dukes were on parole with the State of Georgia. Both were convicted in Hall County Superior Court in 2011, for selling crack cocaine and both were released in 2014. Both brothers were back selling crack cocaine less than a year later.

Kecole Dukes, 41, of Gainesville, Georgia was sentenced to eight years in prison to be followed by four years of supervised release on August 7, 2018. He was found guilty on March 29, 2018, by a federal court jury of conspiring to possess with intent to distribute at least 28 grams of crack cocaine and three counts of distributing crack cocaine.

Kemeca Dukes, 41, of Gainesville, Georgia was sentenced to seven years, six months in prison to be followed by four years of supervised release on August 7, 2018. He pleaded guilty to one count of distributing crack cocaine on March 23, 2018.

This case was investigated jointly by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Hall County Multi-Agency Narcotics Squad Unit.

Assistant U.S. Attorney William L. McKinnon, Jr., Senior Litigation Counsel for the Gainesville, Georgia Division; Assistant U.S. Attorney Erin E. Sanders; and former Special Assistant U.S. Attorney and Hall County Assistant District Attorney Juliet Aldridge, 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 - Monica Rigsby, a former office manager for a cardiology practice, has been sentenced to federal prison for embezzling over $1.1 million from her employer. 

“This defendant’s greed drove her to steal over one million dollars from her employer,” said U.S. Attorney Byung J. “BJay” Pak.  “Criminals who embezzle money from businesses will face prosecution, but employers should also take steps to safeguard against fraud committed by their employees.”

“Rigsby took advantage of her position to profit illegally, violating the trust that Georgia Pediatric Cardiology put in her,” said J.C. “Chris” Hacker, Special Agent in Charge of FBI Atlanta. “Her conviction should serve as a reminder that the FBI is committed to making cases like this a strong deterrent to those tempted by greed.”

According to U.S. Attorney Pak, the charges and other information presented in court: Rigsby was the office manager at the Georgia Pediatric Cardiology practice located in Stockbridge, Georgia.  While working as the office manager, the defendant altered the accounting system to make it appear that she was being reimbursed for legitimate expenses when, in fact, she was stealing a portion of the funds and diverting the money for her own personal use.  Rigsby’s fraud scheme cost the medical practice over $1.1 million.  The defendant used the embezzled funds to purchase clothing, jewelry, an automobile, and to pay for her daughter’s college tuition. 

Monica Rigsby, 55, of Saint Petersburg, Florida, was sentenced to two years, six months in prison to be followed by three years of supervised release on August 7, 2018.  Rigsby was also ordered to pay restitution in the amount of $1,178,314. 

This case was investigated by the Federal Bureau of Investigation.

Assistant U.S. Attorney Thomas J. Krepp and Assistant U.S. Attorney Nathan P. Kitchens, Deputy Chief of the Cyber & Intellectual Property Crime 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 - Evelyn Katrina Taylor-Parks has been charged with conspiring to accept bribe payments while serving as the City of Atlanta’s Deputy Chief of Staff to the Mayor.

“As the Deputy Chief of Staff, the City of Atlanta and its citizens placed immeasurable trust in Parks to act in the best interests of the city,” said U.S. Attorney Byung J. “BJay” Pak.  “Public officials have a responsibility to lead with integrity. Regrettably, Parks allegedly exchanged the power and trust given to her for bribe money paid by a city contractor.”

“Great trust was placed in Parks as Deputy Chief of Staff and she is charged with abusing that position to serve her own financial interests,” said J. C. “Chris” Hacker, Special Agent in Charge of FBI Atlanta. “Because actions like this erode the public’s trust in government, the FBI will continue to vigorously pursue any public official who chooses to violate that trust.”

“Parks’ alleged engagement in personal benefit over the public’s trust cannot be tolerated as a high ranking city official,” said Thomas J. Holloman, Special Agent in Charge of IRS-Criminal Investigation Atlanta. “Pay to play politics will continue to drive IRS-CI and its partners to follow the money in this saga of city hall malfeasance.”

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, working with the Chief of Staff, Chief Operating Officer, and Department Commissioners to advance the administration’s legislative agenda with the Atlanta City Council. She also served as a representative on several community outreach committees. From 2011 to February 2014, Parks conspired to accept bribes from a vendor with the City of Atlanta.  The vendor paid Parks thousands of dollars, and in return the vendor received tens of thousands of dollars for City of Atlanta contract work.  Parks filed financial disclosure statements with the City of Atlanta in which she falsely attested that she was not self-employed or employed by any business or entity other than the City of Atlanta.

Evelyn Katrina Taylor-Parks, 49, of Douglas County, Georgia, has been charged in a criminal information with one count of conspiratorial bribery. Parks is expected to plead guilty to the charge at 3:00 p.m. on August 13, 2018, before U.S. District Judge Steve C. Jones.

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

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

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

ATLANTA – The U.S. Attorney for the Northern District of Georgia, Byung J. “BJay” Pak has announced the appointment of eight new Assistant U.S. Attorneys to support our mission to enforce the law and defend the interests of the citizens we serve in this district.

“The opportunity to represent the United States is one of the greatest honors for a lawyer,” said U.S. Attorney Byung J. “BJay” Pak.  “I’m honored to lead these exceptionally talented and dedicated lawyers whose commitment to public service is unmatched.”

Angela Adams joins the office from the Department of Justice in Washington, where she served as a trial attorney in the Fraud Section of the Criminal Division.  She is pleased to return to Atlanta, where she previously spent six years with Alston & Bird LLP, specializing in government investigations and white collar crime and serving as lead associate in a high-profile criminal RICO case involving school officials.  Angela received her law degree from Howard University School of Law and graduated, magna cum laude, from Clark Atlanta University with a B.A.  She has also clerked for Hon. Clarence Cooper, Senior District Court Judge in the Northern District of Georgia.  Angela is a member of the Criminal Division.

Austin Hall returned to the office from the Georgia Attorney General’s Office, where he served as an Assistant Attorney General in the Medicaid Fraud Control Unit (MFCU).  Before leaving for MFCU, Austin worked as a Civil Assistant U.S. Attorney on cases involving the securitization of residential mortgages and violations of the Controlled Substances Act.  Prior to that, he worked as a Senior Associate at Alston & Bird LLP, focused on federal securities fraud, SEC enforcement and insider trading cases. Additionally, he has served as a Judicial Extern for Hon. Frank Mays Hull, on the Eleventh Circuit Court of Appeals. Austin earned his law degree cum laude from Georgia State University School of Law, where he served as a Board Member for the Georgia State University Law Review, and graduated with a B.A. in English from the University of the South – Sewanee.  Austin is a member of the Civil Division.

Theodore Hertzberg was previously an Assistant U.S. Attorney in the Southern District of Georgia, where he served as the Asset Forfeiture Chief.  He has experience in a wide variety of cases, including OCDETF and violent crimes.  Prior to joining the SDGA, Teddy was an associate with Kramer Levin in New York City. He also clerked for Hon. Kristi DuBose, of the U.S. District Court for the Southern District of Alabama.  He received his law degree from New York University, and his B.A., cum laude, from Amherst.  Teddy is a member of the Criminal Division.

Flora Manship was previously a Senior Associate at Kilpatrick Townsend & Stockton LLP in Atlanta, where she focused on labor and employment litigation.  Flora received her law degree from Emory University School of Law, where she served as the Executive Managing Editor of the Emory International Law Review.  She graduated magna cum laude, Phi Beta Kappa, from Drew University in Madison, New Jersey. She served as a Summer Law Clerk for California Rural Legal Assistance in San Francisco and completed an externship with The Coca-Cola Company and a judicial internship with Hon. Allison E. Accurso, Superior Court of New Jersey.  Flora is a member of the Civil Division.

Leanne Marek joined the office from Alston & Bird LLP, where she was a Senior Associate focused on white collar matters.  She previously served as a summer clerk in the office and as a Third Year Practice Prosecution Clinic Intern with the U.S. Attorney’s Office in the Western District of Virginia, where she worked on a wide variety of matters, including the first “bath salts” case in that district.  Leanne earned her law degree from the University of Virginia School of Law and graduated summa cum laude from Auburn University with a B.A. in Political Science.  During her time at Auburn, Leanne served as a senator in the Student Government Association.  Leanne is a member of the Criminal Division.

Andres Sandoval joined the office from Sequor Law, P.A. (formerly Astigarraga Davis Mullins & Grossman, P.A.) in Miami, where he was a civil litigator, specializing in asset recovery, financial fraud, bankruptcy, and other commercial actions, recovering over $70 million on behalf of fraud victims.  Prior to practice, he served as Student Extern to the Hon. Robert A. Mark of the U.S. Bankruptcy Court in Miami.  Andres earned his law degree, cum laude, from the University of Florida, Levin College of Law, and graduated with a B.A. in political science, cum laude, from Florida International University.  Andres is a member of the Civil Division.

Prior to joining the office, Noah Schechtman worked for the DeKalb County District Attorney’s Office, where he was a Senior Assistant District Attorney in the Trial Division and tried a wide range of cases, including narcotics, trafficking, armed robbery and murder.  His experience includes serving as clerk for Hon. Daniel J. Yablonsky, Judge of the Superior Court – Passaic Vicinage Criminal Division, as well as an externship with Hon. David E. Peebles, United States Magistrate Judge in the Northern District of New York.  He graduated cum laude from Syracuse University College of Law, received a B.S. in Business Administration from George Washington University, and currently coaches the mock trial team at Emory Law School.  Noah is a member of the Criminal Division.

Erin Spritzer joined the office from the U.S. Attorney’s Office for the Middle District of Georgia, where she prosecuted narcotics, firearms, public corruption and child pornography cases.  Prior to that, she worked as an Associate with the Law Office of Arthur W. Leach, specializing in white collar criminal and civil defensive matters.  She served as a Law Fellow for Hon. Paul M. Newby, Associate Justice of the Supreme Court of North Carolina.  Erin earned her law degree from Emory University School of Law, where she was managing editor of the Emory International Law Review, and graduated from the University of North Carolina at Chapel Hill with a B.A. in American Studies and a minor in Spanish.  Erin is a member of the Criminal 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 –Northwest ENT Associates, P.C. (“Northwest ENT”), a Marietta, Georgia based professional corporation, has agreed to pay $1,195,361 to resolve allegations that it violated the False Claims Act by submitting claims for sinus dilation procedures in which it re-used balloon catheters that were intended for single use only.

“When healthcare providers take shortcuts in order to increase their financial bottom line, their patients are put at risk and federal funds are diverted from legitimate medical procedures,” said U. S. Attorney Byung J. “BJay” Pak. “This settlement demonstrates our commitment to pursuing healthcare providers who put their own financial well-being ahead of the well-being of their patients.”

“The goal of our agency is to protect the health and safety of the American tax payer,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services.  “We will continue to work with our law enforcement partners by investigating allegations where the health and safety of Medicare beneficiaries are at risk.”

“American consumers expect and deserve that the devices used by their health care practitioners during medical procedures are not only safe and effective, but also have been held under sanitary conditions,” said Peter Kuehl, Acting Special Agent in Charge, Food and Drug Administration, Office of Criminal Investigations’ Miami Field Office.  “FDA remains fully committed to working with the Department of Justice and our law enforcement partners to hold those who place profits before the health and safety of patients fully accountable.” 

 “This settlement demonstrates the Government’s commitment to protect public funds that support the operations of our armed forces healthcare program (TRICARE) from fraud and abuse,” said John F. Khin, Special Agent in Charge, Defense Criminal Investigative Service-Southeast Field Office.  “Every military contractor that submits claims must ensure that its claims are billed appropriately.  DCIS and its partnering agencies will continue to vigorously pursue defense contractors that disregard billing requirements.”

 “Federal employees deserve health care providers that meet the highest standards of ethical and professional behavior,” said Bret Mastronardi, Special Agent in Charge for the Office of Personnel Management - Office of the Inspector General.  “Today’s settlement reminds all providers that they must observe those standards, and reflects the OPM-OIG’s commitment to pursuing improper and illegal billings that increase the cost of medical care.”

Northwest ENT has five office locations, operates a single specialty surgery center, and provides services at four hospitals in Georgia.  The physicians at Northwest ENT specialize in the medical field of otolaryngology and are commonly referred to as “ear nose and throat” or “ENT” physicians. 

Among the procedures that Northwest ENT performed, is the treatment of sinusitis with a “balloon catheter,” which is inserted into the patient’s sinus and inflated by the physician to enlarge the sinus cavity.  The balloon catheters that Northwest ENT used was cleared by the U.S. Food and Drug Administration as intended for single use only.  Despite this, the physicians at Northwest ENT re-used the devices on their patients, instead of using a new device for each patient.  The civil settlement resolves the government’s investigation into these allegations.

The government alleges that Northwest ENT violated the False Claims Act, 31 U.S.C. § 3729, et seq., by causing the submission of false claims to Medicare, TRICARE and Federal Employee Health Benefit Plans for sinus dilation procedures during the period March 1, 2011 through March 30, 2012, in which the single-use balloon catheters were re-used on their patients. 

In addition, pursuant to a Non-Prosecution Agreement with the United States, Northwest ENT has accepted responsibility for its actions.  It has entered into a three-year Integrity Agreement with the Office of the Inspector General of the Department of Health and Human Services.  Under the agreement, an independent organization will review Northwest ENT’s claims quarterly for medical necessity, accurate coding, and safe and appropriate use of medical devices.

This case was investigated by the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Department of Health and Human Services - Office of Inspector General, the Food and Drug Administration – Office of Criminal Investigations, the Defense Criminal Investigative Service, and the Office of Personnel Management - Office of the Inspector General.

The civil settlement was reached by Assistant U.S. Attorney Neeli Ben-David, Deputy Chief of the Civil Division.  The criminal resolution was reached by Assistant U.S. Attorney Randy Chartash.

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.

 

Northwest ENT Settlement Agreement

NW ENT Settlement Agreement

ATLANTA - Darius Taurean Caldwell has been sentenced for committing two armed bank robberies, brandishing a firearm in connection with those robberies, and possessing a firearm after having been convicted of a felony offense.

“Caldwell terrified and endangered the lives of innocent victims during these armed robberies,” said U.S. Attorney Byung J. “BJay” Pak.  “We are committed to keeping our communities safe and ensuring that justice is served for the victims of his crimes.”

“If not for the quick response by the Smyrna Police Department, this violent offender more than likely would have continued robbing and threatening innocent citizens,” said Ricardo Grave de Peralta, Acting Special Agent in Charge of FBI Atlanta. “His reckless disregard for their safety could have easily turned into tragedy. Fortunately he is no longer a threat.”

According to U.S. Attorney Pak, the charges and other information presented in court: On August 24, 2016, Caldwell robbed a North of Atlanta (NOA) Bank branch in Doraville, Georgia.  He walked into the bank wearing a blue facemask and an inside-out t-shirt.  Caldwell stuck a black and silver handgun in a teller’s face and demanded money.  Minutes later, he fled on foot with several thousand dollars.  He managed to evade capture following this armed robbery. 

On September 7, 2016, Caldwell robbed a Bank of America branch in Smyrna, Georgia.  Again wearing a blue facemask and an inside-out t-shirt, he walked into the bank, reached past a terrified customer, stuck a black and silver handgun in a teller’s face, and demanded money.  He again fled on foot with several thousand dollars.  However, this time Smyrna, Georgia, Police Department officers captured Caldwell within minutes of the robbery while he hid behind a nearby residence.  Investigators later linked Caldwell to the earlier NOA Bank robbery.

Darius Taurean Caldwell, 33, of Duluth, Georgia was sentenced to 32 years, one day in federal prison to be followed by five years of supervised release.  He was also ordered to pay $ 14,841 in restitution.  Caldwell was convicted by a federal jury on April 12, 2018, on two counts of armed bank robbery, two counts of brandishing a firearm during the commission of those robberies, and the offense of possessing a firearm after having been convicted of a felony offense.

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

Assistant U.S. Attorney Bret R. Hobson and Assistant U.S. Attorney Ryan K. Buchanan, Deputy Chief of the Violent Crime and National Security Section, 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 – Stantisha D. Kemp, an accounting manager who embezzled over $1.2 million dollars from her employer over a six-year period has been sentenced.

“Kemp’s egregious misconduct threatened the financial soundness of her company when she stole over one million dollars,” said U.S. Attorney Byung J. “BJay” Pak.  “Businesses should build in checks and balances in their accounting procedures that safeguard their assets from fraud.”

“Hopefully this sentencing makes a statement that the FBI is committed to making cases like this a strong deterrent to the temptation of greed,” said Ricardo Grave de Peralta, Acting Special Agent in Charge of FBI Atlanta. “Kemp not only defrauded the company she worked for, she also violated the trust they put in her.”

According to U.S. Attorney Pak, the charges and other information presented in court: From 2007 to 2013, Kemp served as a payroll and accounting manager of an Atlanta-based company that developed medical technology. During that time, Kemp embezzled over $1.2 million dollars by falsifying payroll records sent to a third-party payroll processing company and instructing the payroll processor to direct deposit funds into her personal bank accounts on a monthly basis. 

Kemp falsely instructed the payroll processing company that a doctor with the initials Y.H.J. was a company employee, and she further instructed the payroll processing company to direct deposit Y.H.J.’s salary payments into her personal bank accounts.  She concealed her scheme by preparing a set of fabricated internal payroll records that made no mention of Y.H.J., who had not been employed by the company since early April 2010.  Nonetheless, Y.H.J.’s unauthorized salary payments were deposited into Kemp’s personal bank accounts, month after month, until February 2013.    

Kemp was sentenced to two years in prison to be followed by three years of supervised release on August 1, 2018. She was also ordered to pay restitution in the amount of $1,253,287.     

This case was investigated by the Federal Bureau of Investigation.

Assistant U.S Attorney Kamal Ghali, Deputy Chief of the Cyber and Intellectual Property Crime 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 - Charles Hubbard, a former police officer with the Auburn, Georgia Police Department, has been sentenced to federal prison for his role relating to conspiracies to commit extortion, traffic drugs, and commit robbery. Co-defendants, Shane J. Mattadeen, Wilfred Rivera, Michael L. Henley, Jr., Shaeib H. Morgan, Clem C. Williamson, and Martin Rosendary, were also charged in the scheme.

“Instead of enforcing the laws he swore to uphold, Hubbard abused his positon as a law enforcement officer by stealing from drug traffickers for his own financial gain,” said U.S. Attorney Byung J. “BJay” Pak.  “We are grateful for our law enforcement partners who worked tirelessly to bring Hubbard and his co-conspirators to justice.”

“The overwhelming majority of police officers perform their duties with honor and professionalism,” said Daniel R. Salter, the Executive Director of the Atlanta-Carolinas High Intensity Drug Trafficking Area (HIDTA). “This defendant abused his position of trust by robbing drug dealers and now he must spend well-deserved time in prison for his criminal acts. This case would not have been possible without the dedicated cooperation between HIDTA, DEA, its law enforcement partners and the subsequent prosecution by the U.S. Attorney’s Office.” 

“The public places trust in law enforcement officials and expects for officers to protect and serve them,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “When an officer violates his oath, this trust is eroded. The defendant in this case unfortunately does not fairly reflect the honest and hardworking men and women of law enforcement who put their lives on the line daily to protect its citizens. This case is a reminder that no officer is above the law. It is also a great example of what can be achieved when DEA works hand-in-hand with its law enforcement counterparts and the U.S. Attorney’s Office.”

According to U. S. Attorney Pak, the indictment, and other information presented in court:  From 2009 until 2016, Hubbard partnered with at least six other people to identify, extort and rob drug dealers.  After a several months’ long investigation, the planning for their latest exploit started on March 30, 2016, when a confidential source approached co-defendant Morgan with a plan to steal money from purported drug dealers who were going to give the confidential source $60,000 for a kilogram of heroin.  The confidential source proposed that Morgan elicit Hubbard’s help, a sworn police officer with the Auburn, Georgia, Police Department, to conduct a fake traffic stop of the source and seize the money for the participants to split.  That same day, Morgan presented the plan to Rosendary who, in turn, presented it to Hubbard.  Hubbard agreed to participate in the robbery and extortion plan.

On April 4, 2016, DEA agents gave the confidential source $40,000.  The source drove to an apartment complex where Hubbard, wearing a tactical police vest and police badge, approached the source and took the money.  Hubbard, Rosendary, and Morgan met briefly, divided the money, and departed.  DEA agents then arrested all three, but not before Rosendary led the agents on a high-speed chase which ended after Rosendary lost control of his vehicle.  Morgan, who was the passenger in the vehicle, fled on foot and was tracked down by a canine.  When the dog found him, Morgan had $10,000 in his pants and another $10,000 nearby.  Hubbard was found with $20,000 in his vehicle.

Charles Hubbard, 54, of Loganville, Georgia was sentenced to nine years in prison to be followed by three years of supervised release on July 30, 2018.  Hubbard pleaded guilty to conspiracy to obtain property by extortion under color of official right and conspiracy to possess cocaine with the intent to distribute on August 17, 2016. 

The other defendants pleaded guilty as follows:

●Martin Rosendary, 47, of Atlanta, Georgia pleaded guilty to conspiracy to obtain property by extortion under color of official right, conspiracy to possess cocaine with the intent to distribute, and conspiracy to commit robbery by force on September 2, 2016.  Rosendary is scheduled to be sentenced on August 15, 2018. 

 ●Shane J. Mattadeen, 41, of Lilburn, Georgia, pleaded guilty to conspiracy to obtain property by extortion under color of official right and conspiracy to possess cocaine with the intent to distribute on February 12, 2018. Mattadeen was sentenced to eight years in prison to be followed by five years of supervised release on July 10, 2018.

●Wilfred Rivera, 38, of Sugar Hill, Georgia pleaded guilty to conspiracy to obtain property by extortion under color of official right and conspiracy to possess cocaine with the intent to distribute on March 5, 2018.  Rivera was sentenced to seven years, eight months in prison to be followed by three years of supervised release on June 4, 2018. 

●Michael L. Henley, Jr., 32, of Alpharetta, Georgia, pleaded guilty to conspiracy to commit robbery by force on February 26, 2018.  Henley was sentenced to six years, three months in prison to be followed by three years of supervised release on June 7, 2018. 

●Shaeib H. Morgan, 42, of Stone Mountain, Georgia pleaded guilty to conspiracy to obtain property by extortion under color of official right and distribution of heroin on August 18, 2016.  Morgan was sentenced to three years, 10 months in prison to be followed by three years of supervised release on May 28, 2018. 

●Clem C. Williamson, 43, of Lawrenceville, Georgia, pleaded guilty to conspiracy to obtain property by extortion under color of official right and conspiracy to possess cocaine with the intent to distribute on August 29, 2017.  Williamson was sentenced to one year, six months in prison to be followed by three years of supervised release on April 24, 2018. 

This case was investigated by the Atlanta-Carolinas High Intensity Drug Trafficking Area Program, and the Drug Enforcement Administration, with assistance from the Georgia State Patrol and the Federal Bureau of Investigation.

Assistant U.S. Attorney Elizabeth M. Hathaway, Chief of the Narcotics and Dangerous Drugs Section, and Special Assistant U.S. Attorney Tyler A. Mann 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 - Ronald L. Wheeler III, a/k/a Trappy, has been sentenced for conspiracy to commit access device fraud while working as a public relations specialist for the Dark Web Marketplace AlphaBay.

“By providing access to and promoting AlphaBay, this defendant profited off the ruination of countless individuals,” said U.S. Attorney Byung J. “BJay” Pak. “This case shows, once again, that criminals cannot hide in the shadows of the Dark Web.”

“Wheeler felt like he was shielded from law enforcement by operating on the Dark Web, but he was clearly mistaken,” said Ricardo Grave de Peralta, Acting Special Agent in of FBI Atlanta. “Cyber criminals like him present a critical threat to our community’s, in this case, by encouraging people to purchase illegal drugs and contraband. No matter where crime happens, the FBI will not stop diligently prosecuting anyone who chooses to threaten our citizens.”

“Sites like Alphabay are extremely problematic and the sentence handed down to Wheeler should send a clear message that when criminals participate in these Dark Web sites, you will be caught and face jail time,” said Thomas J. Holloman, Special Agent in Charge of IRS, Criminal Investigation. “We will continue working with our law enforcement partners in dismantling these Dark Web sites.”

According to U.S. Attorney Pak, the charges and other information presented in court: Wheeler conspired with Alexandre Cazes a/k/a Alpha02 a/k/a Admin, and others to commit access device fraud through the operation of The Onion Routing Dark Web marketplace AlphaBay.

AlphaBay was an international criminal marketplace that enabled users to purchase and sell stolen and fraudulently obtained access devices, illegal drugs, firearms, hacking tools, and other illicit goods and services.  Sales listings on the website were organized into categories, including “Fraud,” “Drugs & Chemicals,” “Counterfeit Items,” “Weapons,” and “Carded Items.”  Shortly before AlphaBay was shut down by law enforcement, the website contained thousands of sales listings for illegal products, including approximately 4,488 sales listings for stolen personally identifying information; 28,800 sales listings for stolen online account information; 6,008 sales listings for stolen credit card information; 3,586 sales listings for computer hacking tools, such as botnets and exploit kits; and 257,533 sales listings for illegal drugs, including cocaine, heroin, and a variety of opioids.  The sales of stolen personally identifying information, online account information, and credit card information all provided fertile grounds for access device fraud to flourish on the Dark Web.  Aside from product listings, AlphaBay provided message board forums where users could securely discuss their criminal activities and receive support from Wheeler and other AlphaBay staffers.

On or about May 25, 2015, Wheeler began working as a public relations specialist for AlphaBay.  Wheeler’s duties included moderating the AlphaBay subreddit on the internet website reddit.com, moderating the AlphaBay message board forums, mediating sales disputes among AlphaBay users, promoting AlphaBay on the internet, and providing non-technical assistance to AlphaBay users.  Throughout his participation in the conspiracy, Wheeler advised the public on how to access AlphaBay and encouraged the public to use the website.  In return for his work, Wheeler received a salary in Bitcoin.  Wheeler’s work with AlphaBay continued until early July 2017, when the FBI and its international law enforcement partners shut down the website.

Ronald L. Wheeler III, a/k/a Trappy, 25, of Streamwood, Illinois was sentenced to three years, 10 months in prison to be followed by three years of supervised release on July 31, 2018.  He was also ordered to forfeit approximately $140,000 in cash and Bitcoin.  Wheeler was convicted on March 8, 2018, after he pleaded guilty.

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

Assistant U.S. Attorney Samir Kaushal prosecuted the case.

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

ATLANTA – Bubacarr Drammeh, a DAL Global Services, LLC employee, and his wife Matako Drammeh, have been charged with smuggling hundreds of thousands of dollars in cash through Hartsfield-Jackson Atlanta International Airport, and transporting that money to California.  Bubacarr Drammeh has also been charged with bribing airport employees to get the cash through security.

“Airports are a critical component of our nation’s transportation infrastructure,” said U.S. Attorney Byung J. “BJay” Pak. “The alleged actions of the Drammehs put all passengers at risk.  We are committed to protecting the integrity of Hartsfield-Jackson Atlanta International Airport, the world’s busiest airport, from this kind of activity.”

“The Drammehs are charged with allegedly breaching airport security at the busiest airport in the world,” said Ricardo Grave de Peralta, Acting Special Agent in Charge of FBI Atlanta. “The FBI takes airline safety and security very seriously. We want to thank our various law enforcement partners at Hartsfield-Jackson Atlanta International Airport, along with Delta Air Lines whose cooperation provided us with information needed to investigate this case.”

“While halting bulk cash smuggling is an important Homeland Security Investigations (HSI) priority, eliminating a potential vulnerability in airport security may serve a larger contribution to national security and protection of critical infrastructure,” said Homeland Security Investigations Atlanta Special Agent in Charge Nick S. Annan. “This case illustrates HSI’s ongoing commitment to working with our federal, state and local partners to protect public safety. Further, HSI is working with relevant airlines to identify and close potential vulnerabilities, which will ensure other criminal networks are not able to engage in similar activity.”

According to U.S. Attorney Pak, the charges, and other information presented in court: From approximately November 2016 to September 2, 2017, the Drammehs exploited Bubacarr Drammeh’s status as an airline employee to evade airport security screenings in an effort to smuggle hundreds of thousands of dollars in cash through airport security checkpoints.  Once through security, Bubacarr Drammeh allegedly transported the unscreened bulk cash on passenger flights to California.  Matako Drammeh also took similar trips to California with cash that her husband delivered to her in the airport after he smuggled the cash through security undetected. Together, the Drammehs allegedly took over 50 trips.

In addition to abusing his airline employee status, the indictment also alleges that Bubacarr Drammeh bribed or attempted to bribe airport employees with money to smuggle bulk cash through security.  On September 2, 2017, Bubacarr Drammeh attempted to bring a bag filled with over $140,000 in cash through an employee security checkpoint.  When a screener at the checkpoint found stacks of money in his bag, Bubacarr Drammeh allegedly offered the screener $8,000 in cash in exchange for not reporting the money to the authorities.  Airport security refused and properly contacted law enforcement officers.

On July 24, 2018, a federal grand jury returned an indictment against Bubacarr Drammeh, a/k/a John Dimites, a/k/a BoBo, 42, and Matako Drammeh, 38, both of Riverdale, Georgia, charging them with conspiring to operate an unlicensed money transmitting business and entering an aircraft and airport area in violation of security requirements. A federal grand jury also charged Bubacarr Drammeh with bribery.

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

This case is being investigated by the Federal Bureau of Investigation and the U.S. Immigration and Customs Enforcement - Homeland Security Investigations Division, with assistance from the Atlanta Police Department.

Assistant U.S. Attorney Ryan M. Christian 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 - Charles Hubbard, a former police officer with the Auburn, Georgia Police Department, has been sentenced to federal prison for his role relating to conspiracies to commit extortion, traffic drugs, and commit robbery. Co-defendants, Shane J. Mattadeen, Wilfred Rivera, Michael L. Henley, Jr., Shaeib H. Morgan, Clem C. Williamson, and Martin Rosendary, were also charged in the scheme. “Instead of enforcing the laws he swore to uphold, Hubbard abused his positon as a law enforcement officer by stealing from drug traffickers for his own financial gain,” said U.S. Attorney Byung J. “BJay” Pak. “We are grateful for our law enforcement partners who worked tirelessly to bring Hubbard and his co-conspirators to justice.” “The overwhelming majority of police officers perform their duties with honor and professionalism,” said Daniel R. Salter, the Executive Director of the Atlanta-Carolinas High Intensity Drug Trafficking Area (HIDTA). “This defendant abused his position of trust by robbing drug dealers and now he must spend well-deserved time in prison for his criminal acts. This case would not have been possible without the dedicated cooperation between HIDTA, DEA, its law enforcement partners and the subsequent prosecution by the U.S. Attorney’s Office.” “The public places trust in law enforcement officials and expects for officers to protect and serve them,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “When an officer violates his oath, this trust is eroded. The defendant in this case unfortunately does not fairly reflect the honest and hardworking men and women of law enforcement who put their lives on the line daily to protect its citizens. This case is a reminder that no officer is above the law. It is also a great example of what can be achieved when DEA works hand-in-hand with its law enforcement counterparts and the U.S. Attorney’s Office.” According to U. S. Attorney Pak, the indictment, and other information presented in court: From 2009 until 2016, Hubbard partnered with at least six other people to identify, extort and rob drug dealers. After a several months’ long investigation, the planning for their latest exploit started on March 30, 2016, when a confidential source approached co-defendant Morgan with a plan to steal money from purported drug dealers who were going to give the confidential source $60,000 for a kilogram of heroin. The confidential source proposed that Morgan elicit Hubbard’s help, a sworn police officer with the Auburn, Georgia, Police Department, to conduct a fake traffic stop of the source and seize the money for the participants to split. That same day, Morgan presented the plan to Rosendary who, in turn, presented it to Hubbard. Hubbard agreed to participate in the robbery and extortion plan. On April 4, 2016, DEA agents gave the confidential source $40,000. The source drove to an apartment complex where Hubbard, wearing a tactical police vest and police badge, approached the source and took the money. Hubbard, Rosendary, and Morgan met briefly, divided the money, and departed. DEA agents then arrested all three, but not before Rosendary led the agents on a high-speed chase which ended after Rosendary lost control of his vehicle. Morgan, who was the passenger in the vehicle, fled on foot and was tracked down by a canine. When the dog found him, Morgan had $10,000 in his pants and another $10,000 nearby. Hubbard was found with $20,000 in his vehicle. Charles Hubbard, 54, of Loganville, Georgia was sentenced to nine years in prison to be followed by three years of supervised release on July 30, 2018. Hubbard pleaded guilty to conspiracy to obtain property by extortion under color of official right and conspiracy to possess cocaine with the intent to distribute on August 17, 2017. The other defendants pleaded guilty as follows: ●Martin Rosendary, 47, of Atlanta, Georgia pleaded guilty to conspiracy to obtain property by extortion under color of official right, conspiracy to possess cocaine with the intent to distribute, and conspiracy to commit robbery by force on September 2, 2016. Rosendary is scheduled to be sentenced on August 15, 2018. ●Shane J. Mattadeen, 41, of Lilburn, Georgia, pleaded guilty to conspiracy to obtain property by extortion under color of official right and conspiracy to possess cocaine with the intent to distribute on July 10, 2018. Mattadeen was sentenced to eight years in prison to be followed by five years of supervised release on February 12, 2018. ●Wilfred Rivera, 38, of Sugar Hill, Georgia pleaded guilty to conspiracy to obtain property by extortion under color of official right and conspiracy to possess cocaine with the intent to distribute on March 5, 2018. Rivera was sentenced to seven years, eight months in prison to be followed by three years of supervised release on June 4, 2018. ●Michael L. Henley, Jr., 32, of Alpharetta, Georgia, pleaded guilty to conspiracy to commit robbery by force on February 26, 2018. Henley was sentenced to six years, three months in prison to be followed by three years of supervised release on June 7, 2018. ●Shaeib H. Morgan, 42, of Stone Mountain, Georgia pleaded guilty to conspiracy to obtain property by extortion under color of official right and distribution of heroin on August 18, 2016. Morgan was sentenced to three years, 10 months in prison to be followed by three years of supervised release on May 28, 2018. ●Clem C. Williamson, 43, of Lawrenceville, Georgia, pleaded guilty to conspiracy to obtain property by extortion under color of official right and conspiracy to possess cocaine with the intent to distribute on August 29, 2017. Williamson was sentenced to one year, six months in prison to be followed by three years of supervised release on April 24, 2018. This case was investigated by the Atlanta-Carolinas High Intensity Drug Trafficking Area Program, and the Drug Enforcement Administration, with assistance from the Georgia State Patrol and the Federal Bureau of Investigation. Assistant U.S. Attorney Elizabeth M. Hathaway, Chief of the Narcotics and Dangerous Drugs Section, and Special Assistant U.S. Attorney Tyler A. Mann 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 – Jhonnita L. Williams, a former department administrator at the Metropolitan Atlanta Rapid Transit Authority (MARTA) agency, has been charged with participating in a false-invoice scheme, resulting in MARTA paying more than $500,000 for maintenance work that was never performed. 

“For years, Williams allegedly betrayed her employer and exploited her position of trust at MARTA, resulting in a massive theft of tax payer money,” said U.S. Attorney Byung J. “BJay” Pak.  “This grand jury charged yet another defendant in this significant fraud scheme.”

“Williams is accused of dipping into taxpayers’ money to subsidize her own personal greed,” said Murang Pak, Acting Special Agent in Charge of FBI Atlanta. “Public corruption like this hits at the heart of government, eroding the public’s confidence, and that’s why the FBI is committed to holding accountable those who choose to abuse their positions of trust.”  

“With this indictment and the conviction of Ms. Williams’s co-conspirator Joe Erves, who is currently serving time, MARTA is closing the chapter on this incident,” said MARTA Chief of Police Wanda Y. Dunham.  “We have zero tolerance for employees who violate the public trust. We remain vigilant to guard against and root out this type of behavior.”

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.  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 allegedly had numerous fake invoices prepared on behalf of three vendors for MARTA maintenance projects for which no work was performed.  Williams and Erves allegedly used the false invoices as a basis 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, the three vendors funneled a portion of the money received from MARTA back to Williams and Erves.

Williams used the money to pay for various personal expenses, including the financing and purchase of an approximately 3,000 square foot single-family home with four bedrooms and two and a half bathrooms. To secure the loan, Williams falsely represented on her loan application that she received $8,500 as a gift from a family member, when in fact she was the source of the money.

On July 24, 2018, a grand jury returned a seven-count indictment against Jhonnita L. Williams, 47, of Atlanta, Georgia, charging her with conspiratorial and substantive federal program theft, mail fraud, and false statements on a loan application. 

On September 20, 2017, Joseph J. Erves, 53, 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.  Ferrell Williams’s sentencing hearing is scheduled for August 1, 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 Federal Bureau of Investigation and the MARTA Police Department.

Assistant U.S. Attorney Jeffrey W. Davis, Chief of the Public Integrity & Special Matters Section, and Assistant U.S. Attorney Alison Prout 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 – Kerby Rigaud, who participated in an international business email compromise scheme, has been sentenced to federal prison for conspiracy to commit wire and bank fraud and money laundering.

“Rigaud and his co-conspirators stole over $1 million from victims while perpetrating their email scam,” said U. S. Attorney Byung J. “BJay” Pak. “Citizens are urged to carefully scrutinize any email directing the transfer of money via wire.”

“Rigaud and his co-conspirators used cyberspace to organize a complex criminal scheme that crossed borders and defrauded numerous people right here in Georgia,” said Malcolm D. Wiley, Acting Special Agent in Charge of the United States Secret Service, Atlanta Field Office.  “Today’s sentence should be a warning to other like-minded criminals that take advantage of unsuspecting victims that they will be punished for their crimes.”

According to U.S. Attorney Pak, the charges and other information presented in court: From April 2015 through April 2016, Rigaud served as a key player an international business email compromise scam impacting victims across the U.S., including in the Northern District of Georgia. 

In numerous instances, victims received emails that appeared to be from trusted sources, including banking representatives and closing agents.  In reality, Rigaud’s co-conspirators sent the emails, directing the victims to wire money to specific bank accounts, some of which were opened in the metro-Atlanta area.  In some instances, the co-conspirators hacked email accounts or they “spoofed” the email addresses, causing the email address to appear as if it were sent by a trusted source, when in reality, it was sent from a different account.

Rigaud recruited numerous individuals who agreed to allow him use their bank accounts for the purpose of receiving large wires from unwitting victims.  After receiving the wires, Rigaud directed his recruits on where to send the money, including to a number of financial institutions in Asia.  Rigaud and his co-conspirators attempted to steal over $1 million during the timeframe of the conspiracy.

Kirby Rigaud, 27, of Duluth, Georgia, was sentenced to two years, three months in prison to be followed by three years of supervised release following his prison term. He was also ordered to pay restitution in the amount of $176,059.03.            

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

Assistant U.S. Attorney Kamal Ghali, Deputy Chief of the Cyber and Intellectual Property Crime 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 - Cedrick Hill has been arraigned on a federal charge for assaulting an FBI agent with his truck in an attempt to evade arrest.  Hill was a fugitive at the time his arrest, having been previously indicted on federal charges for alleged drug offenses.

“Hill allegedly attempted to flee arrest, showing no regard for life when he seriously injured an FBI agent,” said U.S. Attorney Byung J. “BJay” Pak.  “This case is an important reminder of the risks that our law enforcement officers face every day to keep our community safe. We support the work they do and have zero tolerance those who bring them harm.”

“The actions of this defendant were reprehensible, with absolute disregard for the life of our agent,” said Murang Pak, Acting Special Agent in Charge of FBI Atlanta. “The agent was dragged for about a quarter mile at high speeds before the defendant stopped the vehicle due to the defendant’s injuries.  Our agent displayed tremendous courage and calm under fire during this very difficult situation.  Fortunately, our agent is recovering from his injuries and will have his day in court for this blatant attack on a federal officer.”

According to U.S. Attorney Pak, the charges, and other information presented in court: In January 2018, Hill was a fugitive, having previously been indicted by a federal grand jury in a 30-defendant indictment for drug offenses.  On January 5, 2018, FBI agents believed Hill was located at a hotel in Sandy Springs, Georgia.  Upon arrival at the hotel, an agent encountered Hill in the foyer and told him he was under arrest. 

Hill began to put his arms behind his back, but pulled away as the agent began to handcuff him.  Hill then allegedly ran through the lobby and exited the hotel with the agent in pursuit.  The defendant ran to his truck to escape arrest.  The agent attempted to stop him, and became lodged in the driver’s side door. 

With the agent dangling from the door, Hill allegedly sped through the parking lot at a high rate of speed and hit another vehicle, crushing the agent at the point of impact and breaking his arm and femur.  The agent managed to discharge his service weapon with his free hand, striking Hill twice.   

Despite being shot, Hill drove out of the hotel parking lot, crossed Interstate 285, and turned down an access road before stopping the vehicle and releasing the injured agent onto the side of the road.  The injured agent managed to call 911 and request medical care for himself and Hill.  The defendant drove back to the hotel, where he was treated by first responders and later arrested.  The agent remained on the side of the road until he was located by first responders.

Cedrick Hill, 26, of Marietta, Georgia was arraigned before U.S. Magistrate Judge Justin S. Anand for assaulting an FBI agent. Hill was indicted by a federal grand jury on July 17, 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 Federal Bureau of Investigation.    

Assistant U.S. Attorney Jessica C. Morris 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 - Dennis Kitchens has been sentenced to an additional two years in prison for escaping from the minimum-security camp at the U.S. Penitentiary in Atlanta (USP Atlanta) over 10 years ago.

“Kitchens evaded law enforcement for years after his escape in 2006, but he was ultimately caught and returned to prison,” said U.S. Attorney Byung J. “BJay” Pak. “Inmates who escape from prison threaten the safety of our communities. Eventually, the road will run out for them and they will be found and prosecuted, as in this case.”

According to U.S. Attorney Pak, the charges and other information presented in court:  In 2004, Kitchens was sentenced to serve time in prison after a conviction for possession with intent to distribute crack cocaine.  From January 2006 through June 2006, Kitchens was assigned to serve his time at USP Atlanta.  USP Atlanta is a medium-security federal prison for male inmates operated by the Federal Bureau of Prisons. USP Atlanta also has a detention center for pre-trial inmates and a satellite prison camp for minimum-security male inmates. On June 11, 2006, Kitchens escaped from the prison camp.

After his escape, U.S Marshals worked to locate Kitchens, but he evaded detection by law enforcement for over 10 years.  On January 27, 2017, a Cobb County Georgia Police Officer pulled Kitchens over after he cut across lanes of traffic without warning. Kitchens gave the officer a false name, but the officer fingerprinted him at the scene and discovered his true identity.  At the time, Kitchens possessed approximately 10.5 grams of cocaine and 29 OxyContin pills. 

On March 6, 2018, Kitchens pleaded guilty to possession of cocaine with the intent to distribute in the Superior Court of Cobb County, Georgia and was sentenced to 10 years in prison on that charge.  

Dennis Kitchens, 57, of Atlanta, Georgia, was sentenced to two years in prison to be followed by three years of supervised release for escaping from prison.  This term of imprisonment will run consecutive to his prior federal term of imprisonment resulting from his 2004 conviction.  Kitchens was convicted of the escape on April 24, 2018, after he pleaded guilty.

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

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 - Marc E. Bercoon and William A. Goldstein have been sentenced to federal prison on charges that they manipulated the market for shares of MedCareers Group, Inc., a publicly traded company, and that they carried out a second investment fraud scheme using a new business corporation that they organized as the bait for investors.

“These defendants manipulated the stock of a publicly traded company by orchestrating two schemes, netting over $2.5 million from investors,” said U.S. Attorney Byung J. “BJay” Pak.  “At the same time they were rigging the stock market, the defendants fleeced dozens of investors in a separate fraud scheme. Today’s sentencing marks a fitting end to the defendants’ long history of cheating investors out of their hard-earned money.”

“It’s easy to dismiss financial fraud cases like this as harmless, but there is a real victimization and lives are changed because of it,” said Murang Pak, Acting Special Agent in Charge (A/SAC) of FBI Atlanta. “Hopefully the sentencing of these two criminals will give the many people who were defrauded some solace.”

According to U.S. Attorney Pak, the charges and other information presented in court:  From July 2009 through September 2011, Bercoon and Goldstein conspired with others to manipulate the market for shares of MedCareers Group, Inc., a publicly traded company quoted on the over-the-counter bulletin board under the ticker symbol “MCGI.”

The conspiracy culminated in two “pump and dump” schemes carried out in March and May 2010.  To carry out these schemes, Bercoon and Goldstein arranged for MedCareers Group, Inc. to issue a series of misleading press releases and SEC filings, at the same time as co-conspirators sent out mass emails touting the stock.  While the price of MCGI and the demand for the stock were both artificially high because of these efforts, the defendants orchestrated a sell-off of their stock, coordinating activity in multiple “nominee” accounts, which were titled in the names of other people and entities to hide the defendants’ involvement.

From May 2009 through June 2010, Bercoon and Goldstein also carried out a second investment fraud concerning a privately held company.  Specifically, Bercoon and Goldstein organized a private corporation, Find.com Acquisition, Inc., and then solicited investments from dozens of individuals.  Bercoon and Goldstein told investors, and induced brokers working for them to tell investors, that their funds would be used to develop an internet search engine named Find.com.  Bercoon and Goldstein used the bulk of the over $1.5 million raised from investors for unrelated purposes, such as subsidizing their other business ventures and making payments to themselves and their family members.  In fact, over $550,000 of the $1.5 million invested in Find.com Acquisition, Inc. was simply withdrawn from the bank in cash shortly after being invested.

As part of the scheme, investors were provided with written offering materials.  In addition to stating that the investments would be used to develop the Find.com internet search engine business, the written materials stated that investors were being offered the opportunity to buy stock at a price of $1.00 per share, and that no more than 12.5% of investments would go toward commissions.  Despite these representations, Bercoon and Goldstein sold stock to some investors at heavily discounted prices, without informing other investors, and paid commissions of 30% to 40% to brokers on some investments.

These charges flow from a securities fraud investigation conducted by the FBI, in which court-authorized wiretaps were used to intercept telephone conversations.

Marc E. Bercoon, 58, of Dunwoody, Georgia and William A. Goldstein, 54, of Alpharetta, Georgia were each sentenced to 10 years in prison, three years of supervised release following their prison terms, and payment of restitution in the amount of $1,496,733.  The Court also entered a forfeiture order as to each defendant in the amount of $1,953,974.  On February 21, 2018, Bercoon and Goldstein were convicted by a jury on 12 counts of conspiracy, mail fraud, wire fraud, and securities fraud.

In 2010, the U.S. Securities and Exchange Commission sued Bercoon and Goldstein in connection with a separate investment fraud scheme concerning LADP Acquisition, Inc.  A judgment of over $3 million was entered against both men in that case.  The Court applied a sentencing enhancement for violation of a prior judicial order, finding that the defendants violated a preliminary injunction in the LADP case.

This case was investigated by the Federal Bureau of Investigation.  The Atlanta Regional office of the SEC, the Los Angeles Regional Office of the SEC, the Internal Revenue Service Criminal Investigation, and the Criminal Prosecution Assistance Group of FINRA provided valuable contributions in the case.

Assistant U.S. Attorney Stephen H. McClain, Chief of the Complex Frauds Section, and Assistant U.S. Attorneys Alana R. Black and Kamal Ghali 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 - Sudhakar Reddy Bonthu, a former manager at Equifax, pleaded guilty today to a charge of insider trading based on his purchases of options ahead of Equifax’s public announcement of its data breach.

“Bonthu was privy to nonpublic information pertaining to Equifax’s data breach, and he violated the law when he used that knowledge to enrich himself,” said U.S. Attorney Byung J. “BJay” Pak.  “Our office will continue investigate and prosecute those who take advantage of their positions for illegal gain.”

“Our message with this case is simple - company insiders must follow the same rules that govern regular investors, otherwise the public’s confidence in the stock market erodes,” said Murang Pak, Acting Special Agent in Charge of FBI Atlanta. “If they don’t, the FBI and its federal partners are determined to investigate them and hold them accountable.”

“Bonthu used confidential information to determine that his company had suffered a massive data breach and then violated company policy to illegally profit from it,” said Richard R. Best, Director of the Securities and Exchange Commission’s Atlanta Regional Office.  “Corporate employees cannot take advantage of their access to sensitive information and unlawfully benefit from it.”

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. 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 consumers. 

Sudhakar Reddy Bonthu was a software development manager for Equifax’s Global Consumer Services team in August 2017.  In that role, he was entrusted with information that resulted in him concluding that Equifax was the victim of a data breach.  On August 25, 2017, Bonthu and other Equifax employees were asked to assist in responding to the breach, although he was not directly informed that Equifax had been breached.  On August 25, 2017, Bonthu was informed that the target date for announcing the breach publicly was September 6, 2017.  Around August 30, 2017, Bonthu learned that at least 100 million individuals’ information was exposed as part of the breach and that the data included names and Social Security numbers.  The next day, Bonthu received an email related to his work on the breach with a file attached named “EFXDatabreach.postman_collection.”  “EFX” is the stock ticker symbol for Equifax.

On September 1, 2017, Bonthu bought 86 put options in Equifax stock that expired on September 15, 2017.  Those put options allowed him to profit if the value of Equifax stock dropped within that two-week period. Equifax publicly disclosed the data breach on September 7, 2017, and its stock fell the next day.  Bonthu then exercised his put options, realizing a profit of more than $75,000.

Sudhakar Reddy Bonthu, 44, of Atlanta, Georgia is scheduled to be sentenced on October 18, 2018, at 2:00 p.m. before U.S. District Judge Amy Totenberg.

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

Assistant U.S. Attorney Christopher J. Huber, Deputy Chief of the Complex Frauds Section, and Assistant U.S. Attorney Lynsey M. Barron 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 - Ricardo Silva, a current inmate at Smith State Prison and a high-ranking member of the Sureños prison gang, has been sentenced to 35 years in federal prison for trafficking methamphetamine.  He is currently serving a sentence with the state of Georgia for trafficking cocaine.

“Silva’s time in state prison did not deter him from continuing his drug trafficking activity,” said U.S. Attorney Byung J. “BJay” Pak. “Instead of learning his lesson from his cocaine-trafficking conviction, Silva chose to continue building a drug-trafficking network with methamphetamine, but he will now face the consequences of his crime with a lengthy sentence in federal prison.

“The mission of DEA is unwavering - we combat drug traffickers - to include those who “push” drugs on the streets while incarcerated,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Filed Division.  “In the end, these substances cause immeasurable damage to communities. Today’s sentencing is a perfect example of how the law enforcement community and the U.S. Attorney’s Office work together to keep deserving criminals like Silva behind bars.”

“Methamphetamine continues to ravage many communities in our nation,” said Daniel R. Salter, the Executive Director of the Atlanta-Carolinas High Intensity Drug Trafficking Area (HIDTA).  “Because of the positive results yielded in this case, the sentencing of Silva should serve as a stern warning to others, that whether you seek to push methamphetamine on the streets or while incarcerated, you will ultimately be brought to justice.”

“We are especially proud of our agents and investigators who proactively identified the criminal enterprise being conducted by Silva, and worked tirelessly with our partners at the federal, state, and local levels to expose his actions,” said Gregory C. Dozier, Commissioner of the Georgia Department of Corrections. “This is yet another example of why we appreciate the support and assistance of our law enforcement partners, as we continue to work together in our commitment to expose those who pose a threat to the safety of the citizens of Georgia and ensure justice is served.”

“Criminals who are able to operate inside prisons and conduct this level of criminal activity are a direct threat to the safety of the public,” said GBI Director Vernon Keenan. “The GBI is fully committed to working with the state and federal partners to address this type of crime.”

According to U.S. Attorney Pak, the charges and other information presented in court: Since January 2010, Ricardo Silva has been serving a state sentence for trafficking cocaine. Georgia Department of Corrections officials believed that Silva was – and still is – one of the highest-ranking Georgia members of the Sureños, a dangerous gang with a strong presence in state and federal correctional facilities across the United States.

In 2016, federal agents with HIDTA and the DEA began investigating Silva for trafficking drugs while he was incarcerated in Smith State Prison.  Over the course of the investigation, agents learned that Silva obtained access to a contraband cellphone, despite being segregated from the general population for 23 hours a day.  Silva was able to thwart the prison’s security features designed to prevent inmates from making calls on unauthorized devices.

Agents used a variety of investigative techniques, including a federal wiretap of Silva’s contraband cellphone, to uncover his drug trafficking activities. During the investigation, they seized or found evidence of more than 100 pounds of methamphetamine in liquid and crystal form. Silva coordinated deliveries of this methamphetamine with a source of supply based in Mexico.

Law enforcement officers also conducted a traffic stop after observing one of Silva’s co-conspirators making a drug transaction, finding a firearm and approximately six pounds of crystal methamphetamine at the scene.  Silva’s drug distribution network consisted of family members, former prisoners, and other recruits.

Ricardo Silva, 45, of Lawrenceville, Georgia was sentenced by U.S. District Judge Timothy C. Batten, Sr., to 35 years in prison followed by five years of supervised release for conspiring to possess with intent to distribute at least 50 grams of methamphetamine, possessing with intent to distribute at least 50 grams of methamphetamine, and possessing a firearm in furtherance of a drug trafficking crime. Silva was found guilty by a jury on April 18, 2018.

The following defendants have also been convicted in the conspiracy:

●Victor Alfonso Gattan, a/k/a LA, age 33, of Gwinnett County, Georgia, pleaded guilty and was sentenced on July 10, 2018 to 12 years in federal prison for conspiring to possess with intent to distribute at least 50 grams of methamphetamine;

●Anthony Sandoval, a/k/a Tony, age 25, of Monroe, Georgia, pleaded guilty in federal court to conspiring to possess with intent to distribute at least 50 grams of methamphetamine on April 30, 2018, and is awaiting sentencing;

●Lydia Beck, a/k/a Lady, age 26, of McDonough, Georgia, pleaded guilty in federal court to conspiring to possess with intent to distribute at least 50 grams of methamphetamine on December 12, 2017, and is awaiting sentencing;

●Fernando Betancourt, a/k/a Scrappy, age 33, or Douglasville, Georgia, pleaded guilty in federal court to conspiring to possess with intent to distribute at least 50 grams of methamphetamine on March 5, 2018, and is awaiting sentencing; and

●Leslie Nelson, age 38, of Atlanta, Georgia, pleaded guilty and was sentenced on September 22, 2017 to 15 years in state prison for trafficking methamphetamine and possession of a weapon during a crime in the Superior Court of Clayton County.

This case was investigated by the Atlanta-Carolina High Intensity Drug Trafficking Area Program, the Drug Enforcement Agency, the Georgia Department of Corrections, the Georgia Bureau of Investigation, the Georgia State Patrol, and the Atlanta Police Department.

Special Assistant U.S. Attorney Nicholas N. Joy and Assistant U.S Attorneys Jennifer Whitfield and Vivek Kothari prosecuted the case.

The U.S. Attorney’s Office in Atlanta recommends that 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 - Eugene Harvey, a former baggage handler for Delta Air Lines at Hartsfield-Jackson International Airport, has been sentenced to federal prison for conspiring to carry hundreds or weapons onto passenger planes, as a part of a scheme to traffic firearms from Georgia to New York. 

“Harvey breached airport security at one of the nation’s busiest airports in the world, when he smuggled illegal weapons - some of which were loaded - onto passenger airplanes,” said U.S. Attorney Byung J. “BJay” Pak. “We take airline safety seriously and we will continue to prosecute individuals who threaten the safety of our airline travelers.”

“There is no telling how many homicides were prevented by stopping Harvey and his accomplices from continuing to smuggle guns, not to mention the airline safety factor the guns posed,” said Ricardo Grave de Peralta, Acting Special Agent in Charge of FBI Atlanta. “This case is another example of our determination to make our neighborhoods safer by keeping illegal firearms off our streets.”  

“Firearms trafficking puts guns into the hands of violent criminals,” said ATF Special Agent in Charge Arthur Peralta.  “Mr. Harvey was not concerned with the safety of airline passengers or with the fact that his actions promoted violence on the streets of New York City.  We must all work together to ensure that people like Mr. Harvey are identified, arrested and prosecuted to the fullest extent of the law.”   

According to U.S. Attorney Pak, the charges and other information presented in court: Throughout 2014, Harvey used his security badge to smuggle firearms through airport-controlled security checkpoints at Hartsfield-Jackson, while working as a baggage handler for Delta Air Lines. He then transferred the firearms to his accomplice, another former Delta employee.  The accomplice concealed the firearms in his carry-on luggage and took them into the passenger cabins of flights traveling between Atlanta and New York’s JFK and LaGuardia Airports.  The transfer of the firearms would take place in locations past the Transportation Security Administration’s checkpoints - such as a men’s restrooms or food court areas. The transfer locations were agreed upon through text messages prior to the handoff.  Harvey’s accomplice then flew to New York with the guns, where they were illegally sold by a third accomplice.

A federal investigation into Harvey began when the New York Police Department (NYPD) and the Kings County, New York, District Attorney’s Office notified the FBI that an unidentified individual was helping a gun trafficker move firearms illegally from Georgia to New York.  The NYPD identified and arrested the New York seller of the illegal firearms, and worked with the Atlanta FBI Office to investigate how the guns were being smuggled into New York.  Upon learning the firearms were being smuggled on passenger planes, Delta Air Lines worked closely with law enforcement to identify Harvey as the inside smuggler and immediately terminated his employment.

In total, Harvey trafficked 135 firearms between Georgia and New York.  The last shipment on December 10, 2014, contained 18 firearms, seven of which were loaded. 

Eugene Harvey, 34 of College Park, Georgia and his co-conspirators were recently convicted and sentenced in New York for state firearms violations.  Harvey was sentenced today by U.S. District Judge Thomas W. Thrash, Jr. to 30 months in prison to run concurrent with the five year sentence he is currently serving in New York, to be followed by three years supervised release for conspiring to carry guns onto an aircraft as part of a scheme to traffic firearms to New York.  Harvey was arrested on the federal charges on December 20, 2014 and he pleaded guilty to the conspiracy charge on December 8, 2017.

This case was investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Federal Air Marshals, with assistance from the Transportation Security Administration.

Assistant U.S. Attorney Kim S. Dammers, Chief of the Organized Crime and Gang Section and Assistant U.S. Attorneys Skye Davis 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 – Shusta Traverse Gumbs was sentenced today following his convictions for two counts of using a motor vehicle to assault members of the U.S. Marshals Services’ Southeast Regional Fugitive Task Force (SERTF) after he eluded arrest in his vehicle, pinning a Deputy U.S. Marshal with his car during his escape.

“In an attempt to flee arresting officers, Gumbs showed no regard for life when he seriously injured one of the Deputy Marshals with his vehicle,” said U.S. Attorney Byung J. “BJay” Pak.  “His lengthy prison sentence reflects our commitment to prosecute those who seek to injure our law enforcement partners who work tirelessly to protect us.”

“We appreciate the efforts of the U.S. Attorney’s Office in obtaining this conviction of Gumbs, who is a violent repeat offender,” said Keith D. Booker, Chief Inspector, Southeast Regional Fugitive Task Force, U.S. Marshals Service.   “Law enforcement personnel face dangers every day in an effort to keep communities safe. Violence against those who swear an oath to protect the public will not be tolerated.”

According to U.S. Attorney Pak, the charges, and evidence presented at trial: On October 21, 2016, the SERFTF sought Gumbs for an active warrant issued by Douglas County, Georgia, Superior Court for failure to appear for the offenses of theft by receiving stolen property, felon in possession of a firearm, and possession of marijuana.  SERFTF members saw Gumbs stopped in a black car in a parking lot of a store in the West End neighborhood of Atlanta. 

A deputy entered the parking lot in a car, with another deputy as his passenger.  A third deputy arrived in a van, with two more deputies as his passengers.  Two separate deputies each arrived in separate vehicles. All the officers then converged on Gumbs’s vehicle with the sirens and blue lights of their vehicles engaged and firearms drawn.  Gumbs was ordered to turn off and exit his vehicle. Gumbs suddenly placed his vehicle in reverse and backed up approximately 10 to 15 feet.

One of the deputies then ran to his vehicle to retrieve an expandable baton should it become necessary to break any of the windows of Gumbs’ vehicle.  As that deputy approached Gumbs’s vehicle a second time, Gumbs accelerated his vehicle to force his way past two of the officers’ parked vehicles. As Gumbs did so, he pinned the deputy between the two vehicles, crushing a thigh, knee, foot, and ankle. Gumbs then fled the West End area at a high rate of speed during heavy traffic, striking a motorist’s vehicle, and running a stop sign and a red traffic light. He eventually abandoned the vehicle and eluded capture until four days later, on October 25, 2016.

Following a jury trial, Shusta Traverse Gumbs, 40, of the U.S. Virgin Islands, was convicted on December 11, 2017, of two counts of forcibly assaulting, impeding, opposing, resisting, or interfering with four federal officers during the performance of their official duties. U.S. District Judge Mark H. Cohen sentenced Gumbs to 19 years, six months in prison, followed by three years of supervised release.

This case was investigated by the U.S. Marshals Services’ Southeast Regional Fugitive Task Force, with assistance from the Atlanta Police Department.

Assistant U.S. Attorney Richard S. Moultrie, Jr., Chief of the Violent Crime and National Security Section, 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.

ROME, Ga. - Michael McEarchern has been sentenced for attempting to hire someone to kill his ex-wife, promising $10,000 and two Atlanta Hawks basketball tickets as payment for the murder.

“McEarchern was serious about having his ex-wife killed and provided $800 as a down payment for her murder,” said U.S. Attorney Byung J. “BJay” Pak.  “The defendant has been brought to justice and his lengthy prison sentence will provide him with an opportunity to reflect on his egregious crime.”

“Had the FBI not been notified by a concerned citizen, McEarchern more than likely would have found someone to carry out the murder of his ex-wife,” said J.C. Hacker, Special Agent in Charge of FBI Atlanta. “It is a great example of how law enforcement, working with the public, can prevent crime, and in this case the murder of an innocent woman.”

According to U.S. Attorney Pak, the charges and other information presented in court:  McEarchern was an inmate at the jail in Bartow County, Georgia, having been arrested on drug-related charges in October 2017.  While incarcerated, McEarchern reached out to several individuals trying to find someone who could arrange for the murder of his ex-wife, who lived in Cobb County.  One individual told a friend of McEarchern’s desire to kill his ex-wife, and that person reported the crime to the FBI.  To ensure that McEarchern was serious about seeking someone to carry out the murder, the FBI waited for McEarchern to reach out to the informant, which he did. 

Believing that he was arranging the killing of his ex-wife, McEarchern agreed to pay $10,000 in cash and two tickets to an Atlanta Hawks basketball game as payment.  Additionally, to show that he was serious, he had $800 in cash mailed to the purported assassin.  Jail recordings captured McEarchern providing the address to the person who he asked to mail the money for him. The FBI retrieved an envelope containing the $800 with a return address of the person who sent the money on McEarchern’s instruction. The defendant also provided an address where the assassin could find the ex-wife.   

Michael McEarchern, 29, of Acworth, Georgia was sentenced by U.S. District Judge Harold L. Murphy on July 13, 2018, to 10 years in prison to be followed by three years of supervised release. McEarchern was convicted of murder-for-hire on April 24, 2018, after he pleaded guilty.

This case was investigated by the Federal Bureau of Investigation and the Bartow County Sheriff's Office.

Assistant U.S. Attorney Kim S. Dammers, Chief of the Organized Crime and Gang Section, prosecuted the case.

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

ATLANTA – William Anthony Everett and Marcus Lamont Ward, Jr. were charged in a superseding indictment by a federal grand jury for conspiracy to commit and commission of armed robberies of two banks, and several robberies of Metro PCS stores, Subway sandwich shops, and a Dollar General store. The men were also charged with several counts of possessing a firearm during these armed robberies.  Everett was also charged with possessing a firearm while a convicted felon.

“Federal, state, and local law enforcement officers collaborated extensively to solve the violent crime spree for which the defendants are charged,” said U.S. Attorney Byung J. “BJay” Pak. “These defendants are alleged to have committed numerous armed robberies, together and separately, in several metro Atlanta cities. Their crimes involved harrowing incidents in which bank tellers and cashiers were terrorized, while they were forced to relinquish cash at gunpoint.”

“For about a two-month period, these two defendants are alleged to have terrorized innocent victims who just happened to be in their path,” said J.C. Hacker, Special Agent in Charge of FBI Atlanta. “The reign of terror ended, and now the traumatized victims can take solace that these two defendants will face justice in court, thanks to the coordinated effort of several law enforcement agencies.”  

“This indictment demonstrates the outstanding work of law enforcement at all levels to investigate violent crimes in Georgia,” said GBI Director Vernon Keenan.  “The GBI remains committed to working with our local and federal partners to aggressively pursue and dismantle this type of criminal element in our state.” 

“I commend the U.S. Attorney’s Office for the collaborative partnership that has developed resulting in local, county, state, and federal authorities working together to ensure our communities are protected from violent offenders,” said LaGrange Police Chief Louis Dekmar.

“This case is an excellent example of law enforcement agencies working together quickly and effectively, leading to the arrests and subsequent indictment of these criminals,” said Hogansville Police Chief Brian Harr.

According to U.S. Attorney Pak, the superseding indictment, and other information presented in court: On October 7, 2016,  LaGrange Police Department (LPD) officers arrested Everett and Ward in a dark gray jeep following a traffic stop executed by the Hogansville Police Department (HPD). The defendants’ arrests occurred shortly after the armed robbery of a Community Bank and Trust (CB&T) branch in LaGrange. Inside the jeep, owned and driven by Ward, officers recovered a black and silver semi-automatic pistol, money from the LaGrange bank, and clothing -  a shirt, baseball cap, and black sunglasses - that matched items worn by the robber during the LaGrange robbery, as captured by the bank’s surveillance cameras.  A bank manager at the LaGrange CB&T branch identified Everett as the man who committed the LaGrange and Hogansville armed robberies. A witness described seeing two suspicious men behind the Hogansville CB&T branch emerge from a dark Jeep just before that bank robbery.

Following the defendants’ arrests, the FBI consulted with Georgia Bureau of Investigation agents and local law enforcement officers about a rash of armed commercial robberies involving Metro PCS stores, Subway sandwich shops, and a Dollar General store. During all but one of the robberies, video surveillance footage captured a man who appeared to be Everett pointing either a silver and black, or black, handgun at the cashiers while robbing the establishments. Multiple witnesses described the man resembling Everett as escaping in a dark jeep that matched the general description of Ward’s jeep, in which the men were arrested on October 7, 2016. Another witness from one of the Metro PCS stores knew Everett and Ward and reported their involvement in the Metro PCS store robbery. The cashiers at the Dollar General store also identified Everett as the armed robber of their business.

The superseding indictment alleges that Everett and Ward conspired to commit the following armed robberies, including some in which only Everett is charged in the substantive counts of the indictment:

●September 29, 2016, armed robbery of a Metro PCS store located in southeast Atlanta, Georgia;

●September 22, 2016, armed robbery of a Metro PCS store located in Decatur, Georgia, including the brandishing of a firearm during this crime of violence;

●September 12, 2016, armed robbery of a Metro PCS store located in Fairburn, Georgia, including the brandishing of a firearm during this crime of violence;

●September 7, 2016, armed robbery of a Subway sandwich shop located in Forest Park, Georgia, including the brandishing of a firearm during this crime of violence;

●August 29, 2016, armed robbery of a Metro PCS store located in College Park, Georgia, including the brandishing of a firearm during this crime of violence;

●August 23, 2016, armed robbery of a Metro PCS store located in northwest Atlanta, Georgia; and

●August 14, 2016, armed robbery of a Dollar General store located in Kennesaw, Georgia.

William Anthony Everett, 57, and Marcus Lamont Ward, Jr., 31, both of Atlanta, Ga., were charged in a superseding indictment on July 10, 2018 for conspiracy to commit and commission of armed robberies of two banks, and several store robberies, including several counts of possessing a firearm during and in furtherance of these armed robberies.  Members of the public are reminded that the superseding indictment only contains charges.  The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.

This case is being investigated by the Federal Bureau of Investigation, Georgia Bureau of Investigation, Atlanta Police Department, DeKalb Police Department, Fairburn Police Department, Forest Park Police Department, Fulton County Police Department, Hapeville Police Department, Hogansville Police Department, LaGrange Police Department, Kennesaw Police Department, and Newnan Police Department.

Assistant U.S. Attorney Richard S. Moultrie, Jr., Chief of the Violent Crime and National Security Section, and Assistant U.S. Attorney Dashene A. Cooper are prosecuting the case.

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

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

ATLANTA - Six defendants have been indicted by a federal grand jury on charges of stealing expensive cars from dealerships in three states, altering their Vehicle Identification Numbers (VIN), and fraudulently obtaining new titles for the cars.

“These defendants were brazen in stealing expensive vehicles from car dealerships,” said U.S. Attorney Byung J. “BJay” Pak. “They are alleged to have altered the Vehicle Identification Numbers of the stolen cars to cover their tracks and to allow them to sell the cars as legitimate.”

“The FBI Atlanta’s Organized Crime Task Force, working in coordination with the Alpharetta Public Safety Department and others, were able to bring a stop to the illicit business this crime ring is alleged to have been conducting,” said J.C. Hacker, Special Agent in Charge of FBI Atlanta. “The combined effort is another example of how law enforcement will go to every length to protect our citizens and bring those who violate the law to justice.”

“When a civil servant is associated with criminal activity, it undermines the public’s trust in government,” said Special Agent in Charge Floyd Martinez. “The General Services Administration Office of Inspector General will continue to work with our law enforcement partners to aggressively investigate and hold accountable individuals who abuse this trust for personal gain.”

“This is another great example of what happens when we combine federal and local resources in an effort to combat expansive criminal activity,” said Alpharetta Police Chief John Robison.  “We are grateful for our strong partnership with the FBI, and we look forward to continuing to work with them in the future.”

According to U.S. Attorney Pak, the charges, and other information presented in court: The defendants allegedly worked together to steal high-end vehicles, mainly from car dealerships in Georgia, Tennessee, and South Carolina. After stealing the cars, the defendants researched vehicles that were similar to the ones they had stolen, and when a similar car was found, they used that vehicle’s VIN to create a new VIN for the stolen car. They then affixed the new VIN to the dashboard to thwart detection that the vehicle was actually stolen.

At that point, defendants submitted fraudulent powers of attorney to state motor vehicle departments to obtain copies of the titles of the similar cars. With the fake title in hand, the defendants allegedly sold the stolen car with its new VIN. The defendants allegedly stole eight Bentleys, three Audis, two Mercedes-Benz, two GMC Yukons, two Chevrolet Corvettes, as well as other expensive cars. 

The following defendants were indicted by a federal grand jury on June 26, 2018 and charged with conspiracy, wire fraud, mail fraud, and altering a VIN:

●Everett Tripodis, 42, of Atlanta, Georgia; 

●Janell Payne, 39, of Atlanta, Georgia;

●Mark Wilson, 31, of Toledo, Ohio;

●Kakawana Tate, 42, of Atlanta, Georgia;

●Antonio Tyler, 42, of Augusta, Georgia; and

●Quentin Berry, 45, of Atlanta, Georgia.   

Tripodis and Payne were arraigned on July 10, 2018, on federal charges of stealing expensive cars, altering their Vehicle Identification Numbers (VIN), and fraudulently obtaining new titles for the cars. Tripodis was also ordered detained on July 13, 2018, pending trial by U.S. Magistrate Judge Russel G. Vineyard.  Tripodis has two previous federal convictions for tampering with and altering VINs.  Payne is trained as a lawyer.

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

This case is being investigated by the Federal Bureau of Investigation.  The Alpharetta Police Department, the Atlanta Police Department, and the General Services Administration – Office of Inspector General also provided assistance on the case.

Assistant U.S. Attorneys Phyllis Clerk and Paul R. Jones 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 – A federal grand jury has returned two indictments charging seven Nigerian nationals with federal charges ranging from wire fraud to identity theft arising from their operation of online romance fraud schemes that cost users of American dating websites over $1.5 million in losses.  Federal agents have arrested five of the seven defendants - two defendants remain at-large.  The indictments were partially unsealed earlier today. 

“The defendants in these cases allegedly used fake personas on online dating websites to trick lonely individuals into giving them money,” said U.S. Attorney Byung J. “BJay” Pak.  “The defendants would allegedly spend weeks cultivating online relationships with their victims before defrauding them.  Some victims lost hundreds of thousands of dollars from their retirement savings or inheritances.  Users of online dating websites should be aware of such scams and should exercise extreme caution if asked for money by anyone online or over the phone.”

“The anonymity of the internet often makes a tempting playground for unscrupulous individuals who are simply waiting for an opportunity to steal from others,” said Thomas J. Holloman, III, Special Agent in Charge, IRS Criminal Investigation. “The special agents of the IRS - Criminal Investigation are uniquely skilled in their ability to trace the criminal proceeds obtained as a result of online fraud, and will continue to work with our law enforcement partners in an effort to hold cybercriminals accountable for their actions.”

According to U.S. Attorney Pak, the indictments, and other information presented in court:  The defendants and other conspirators allegedly created phony dating profiles on popular online dating websites that described fictitious personas.  These profiles depicted photographs of attractive men and women that, in some instances, were public figures, such as government officials or models, taken from publically available websites.  The conspirators allegedly used their fake online personas to target users of online dating websites and falsely pose as potential paramours by expressing strong romantic interest in the targeted users.  These conspirators often targeted vulnerable individuals who possessed financial assets and in some cases spent weeks and months cultivating romantic relationships with them through online messaging, text messaging, and voice calls.

After gaining their affection and trust, the conspirators, posing as the fake paramours, allegedly provided the targeted users with elaborate false stories to cause the users to send them money through interstate wire or online transfers to bank accounts controlled by the conspirators.  The fake paramours often claimed to be working overseas and in need of money to travel back to the United States or to complete business deals abroad.  Once the conspirators received money from targeted users, the conspirators quickly withdrew the funds and dispersed them into other accounts, domestically and abroad. 

The indictments charge the defendants with a total of 60 counts of wire fraud, money laundering, identity theft, and use of false passports. The defendants charged in the indictments are as follows:

●Olu Victor Alonge, a/k/a Serge Damessi, a/k/a Didier Baraze, a/k/a Mobo Marcus Adeh, a/k/a Ayo Baraze, a/k/a Nicolas Soglo, 34, of Newnan, Georgia;

●Ugochukwu Lazarus Onebunne, a/k/a Policap Tizhe, a/k/a Saheed Ademoha, 41, of Douglasville, Georgia;

●Olajide Olalekan Adara, a/k/a Kelvin Mensah, 33, of Loganville, Georgia;

●Joshua Adedeji Ipoade, 28, of Atlanta, Georgia;

●Oladunni Temitope Oladipupo, 24, of Lynn, Massachusetts; and

●Two other defendants are fugitives and their identities remain sealed.

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. Capitol Police and the Internal Revenue Service Criminal Investigations Division. 

Assistant U.S. Attorneys John S. Ghose and Sekret Sneed 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 – Emily Moerdermo Fu, a metro Atlanta realtor and businesswoman, who defrauded clients out of more than $22 million dollars over a 2-year period, pleaded guilty to mail fraud on July 12, 2018.

“Real estate professionals who embezzle their clients’ investment funds threaten the integrity of our real estate market,” said U.S. Attorney Byung J. “BJay” Pak. “Investors must remain vigilant against fictitious loans, made-up closings, and other schemes by licensed professionals before they invest their monies.”

“The defendant used her position as a well-regarded realtor to defraud money from hardworking investors for her own personal financial gain,” said Scott D. Fix, Acting U.S. Postal Inspector in Charge of the Charlotte Division.  “Postal Inspectors will continue to vigorously pursue and bring to justice those individuals who use the U.S. mail to commit crimes.”

According to U.S. Attorney Pak, the charges and other information presented in court: Fu operated Capital Investment International Management, Inc., a company located in Suwanee, Georgia, that offered a wide range of services to investors in commercial properties around the Atlanta area, 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 records of some of the investment companies and confronted Fu, who admitted to embezzling around $930,000.  Through queries into 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 told 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” for her own purposes.  She also used properties, purchased by the investors with cash, as collateral for unauthorized loans which she then pocketed. Fu had been a prominent real estate professional, whose recognitions included “Individual of the Year – Governor’s International Award” in Georgia in 2012.

Sentencing for Emily Fu, 57, of Atlanta, Georgia has not been scheduled.  

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

Assistant U.S. Attorney Brian Pearce 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.

ROME, Ga. - Shawn Ryan Budovic, who targeted very young children for sexual exploitation, was sentenced to 25 years imprisonment for the production of child pornography. 

“The defendant used the internet to hunt and sexually exploit young children for his own sexual gratification,” said U.S. Attorney Byung J. “BJay” Pak. “While Budovic will now serve a lengthy prison sentence for his crimes, this is also a reminder to parents of the dangers children may encounter on the internet, as well as an alert to tactics predators use to lure, manipulate and prey on their victims.”

“Individuals responsible for producing child pornography steal the innocence of children and further their revictimization each time the evidence of that exploitation is shared online,” said Homeland Security Investigations Atlanta Special Agent in Charge Nick S. Annan. “This case shows HSI investigators are 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: Budovic used the messenger application Kik to meet his former girlfriend when she was a minor and he was in his mid-twenties. Budovic began an online relationship with the minor, and over time he groomed her to believe that his sexual interest in children was normal.  He discussed his sexual interest in young children with his girlfriend and sent her images of child pornography.  Eventually, Budovic asked his minor girlfriend for sexually explicit photographs of her younger siblings, who were as young as two, four, and nine years old at the time.  At Budovic’s urging, the minor girlfriend ultimately sent him multiple sexually explicit photos of her younger sisters.  Homeland Security Investigations agents found pornographic photos of the children on Budovic’s phone when they executed a search warrant at his home.

Budovic’s obsession with child pornography did not stop with his minor girlfriend and her siblings.  He also had a collection of hundreds of videos and images of pre-pubescent girls being sexually molested and raped.  Budovic sought out girls as young as 12 years old on websites, such as Facebook and Skype, and engaged in sexually explicit chats with numerous minors.  In multiple instances, he enticed young girls to send him sexually explicit images and videos of themselves over the internet.  Budovic also shared images of his own genitals with the girls.

Shawn Ryan Budovic, 28, of Cartersville, Georgia was sentenced to 25 years in prison to be followed by lifetime supervised release.  He will be required to register as a sex offender upon release.  Budovic was convicted on these charges on May 1, 2018, after he pleaded guilty.

This case was investigated by the Department of Homeland Security, Homeland Security Investigations.

Assistant U.S. Attorney Jolee Porter 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.

ROME, Ga. - Barry Shedd has been sentenced to 20 years in federal prison for possession with the intent to distribute at least 50 grams of methamphetamine less than two months after his release from state custody. 

“This defendant had already served sentences for distributing dangerous drugs when he chose to return to criminal activity,” said U.S. Attorney Byung J. “BJay” Pak.  “Shedd took his freedom for granted, and now he will serve 20 years in federal prison, where there is no parole.”

“The amount of prison time Shedd received correctly reflects the continuous criminal activities he engaged in, to include the distribution of the insidious drug methamphetamine,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division.  “This sentencing removes yet another dangerous criminal from our streets and sends a clear message to others who may choose to indulge in this lifestyle. DEA and its law enforcement partners and the U.S. Attorney’s Office will relentlessly pursue and ultimately prosecute criminals like Shedd.”

“On the date Shedd was arrested he was cooperative and if not for the vehicle accident would surely still be what I consider a menace to society. It is apparent that the incarceration period and release just prior to this arrest did not have the desired effect of guiding Shedd toward rehabilitation,” said Major Carl Lively, Floyd County Police Department.  “Shedd is well known to many officers in our department due to his past drug involvement history. During the past years when he has not been incarcerated he has mostly been a resident in our county. The damages that he has caused to his family and our community through his decisions over the years will never be known.”

According to U.S. Attorney Pak, the charges and other information presented in court: On August 17, 2017, Shedd crashed his vehicle in a single car accident in Floyd County, Georgia.  He was observed entering the woods at the site of the crash and then returning to his vehicle. 

Because of his known drug history, a K-9 unit searched the wooded area near the crash.  Law enforcement officers located a bag containing a quarter kilogram of methamphetamine, 110 pills, digital scales, hypodermic needles, and Shedd’s prison ID card.  Officers also seized $3,253 in cash. 

Shedd had only just been released from prison 58 days earlier for a prior drug offense.  Because of his repeated convictions for trafficking in methamphetamine, the Court designated Shedd a career offender.

Barry Shedd, 46, of Rome, Georgia, was sentenced by U.S. District Judge Harold L. Murphy to 20 years in prison to be followed by 10 years of supervised release on July 12, 2018.  Shedd was convicted on these charges on January 10, 2018, after he pleaded guilty.

This case was investigated by the Drug Enforcement Administration, Floyd County Police Department, Polk County Police Department, and Rome/Floyd Metro Task Force.

Assistant U.S. Attorney Alison Prout prosecuted the case.

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

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

ATLANTA – The U.S. District Court and the U.S. Attorney’s Office for the Northern District of Georgia are issuing an alert to citizens concerning a scam that has cost victims thousands of dollars.  Citizens continue to receive fraudulent phone calls from scammers falsely claiming to be with the U.S. District Court, the U.S. Marshals Service, or other government agencies.  The scammers claim that the victim failed to appear for jury duty in federal court and threaten the victims with arrest unless they purchase a pre-paid credit card—such as a Green Dot card or gift card—and provide the card number to the scammers.

“These schemes are often carried out by state prisoners using contraband cellphones,” said U.S. Attorney Byung J. “BJay” Pak. “While our office has prosecuted dozens of these cases, citizens should be vigilant and suspicious of anyone who claims to be from a federal agency and demands payment for failing to appear for a jury summons. In short, a representative from a federal agency or federal court will never call demanding money.” 

 “If you missed jury duty, the court will never call you on the phone and demand money or a gift card number,” said Lucy S. Moses, Jury Administrator for the U.S. District Court. “Everything related to jury duty is done through the U.S. Mail to the individual juror. Citizens who receive a call and question whether it is legitimate can verify by calling the jury office themselves.”

Based on reports received by the Northern District’s jury office, over the last two years, local citizens have given scammers anywhere from $400 to $13,000 out of fear that an arrest warrant had been issued due to their failure to appear for jury duty.  Many of the victims took money out of their savings or retirement to pay the scammers.  One elderly gentleman reported that he had given all he had - $5,000 - and was fearful of what might happen to his wife, who suffers from dementia.  On another occasion, a local teacher reported that she gave a scammer $1,200 because she was going through an adoption process and did not want anything that would interfere with her ability to adopt.

Victims commonly report that the scammers sound convincing and speak authoritatively.  The scammers may use real information about the victim and court addresses.  They may also use the real names of law enforcement officers, court officials, and federal judges to make the scam appear more credible.  They may even “spoof” the phone number on caller ID so that it falsely appears to be from the court or a government agency.  In one reported instance, a scammer learned that a potential victim was getting married and threatened to cancel her wedding if she did not pay.

Citizens can protect themselves by knowing these facts about federal jury service:

●The court will always send a jury summons by U.S. Mail.

●The court and law enforcement will never demand payment over the phone.

●The court and law enforcement will never demand a gift card number to satisfy an obligation.

●A prospective juror who disregards a jury summons will be contacted through the mail by the court clerk’s office and may, in certain circumstances, be ordered to appear before a judge.  Such an order will always be in writing and signed by the judge.  

●A fine will never be imposed until after the individual has appeared in court and been given the opportunity to explain his or her failure to appear.  If a fine is imposed, it will be in open court and reduced to writing (and will not be payable by gift card number).

Citizens who wish to verify whether they were summoned for federal jury duty may contact the Northern District of Georgia’s jury office at 404-215-1640.  Citizens can report a scam phone call by contacting the FBI Atlanta Field Office at 770-216-3000.

NEWNAN, Ga. - Christopher Bradley Braden, who on two separate occasions arranged to meet minor girls for sex, pleaded guilty to enticing a minor to engage in illegal sexual activity.

“Braden was lurking on the internet seeking to prey on young girls,” said U.S. Attorney Byung J. “BJay” Pak. “On two separate occasions, the defendant drove for hours hoping to have sex with the girls. Thanks to the vigilance of our local law enforcement partners, Braden will be held accountable for his depraved conduct.”

“The FBI’s Violent Crimes Against Children unit, along with the FBI Atlanta Metro Atlanta Child Exploitation Task Force (MATCH) remain vigilant for predators who pose a threat to our children,” said J. C. Hacker, Special Agent in Charge of FBI Atlanta. “Braden’s plea should send a message to child predators that law enforcement is hunting them just as they are hunting victims.”

“The internet is a tool that has provided our society with many wonderful conveniences, however, the internet also has a dark side that sexual predators can use to prey on children,” said Marietta Police Chief Dan Flynn. “This case is a good example of federal, state, and local law enforcement collaborating to counter criminal activity on the internet in order to protect our children.”

“Our department is fortunate to have teamed up with federal, state and local law enforcement partners to stop this predator,” said Bremen Police Chief Keith Pesnell.  “I’m also grateful for the hard work of my officer who was involved in taking Braden off the street to protect our children.”

According to U.S. Attorney Pak, the charges and other information presented in court: In November 2016, Braden started communicating with a young girl on the cell phone app - Meet24. She told him that she was 13 years old. He immediately initiated sexual conversations with the minor, asking about her body development and her sexual experience. Braden sent her a video of himself masturbating. He made arrangements to meet her for the purpose of having sex with her on December 1, 2016. When Braden showed up at the pre-arranged location in Marietta, Georgia, he was met by two Marietta Police Department officers and was arrested. He was later released on bond. The 13-year-old girl was actually an undercover police officer.

In May 2017, almost six months later, Braden met a 14-year-old girl on the same cell phone app – Meet24. Like before, he asked the minor questions about her body development and her sexual experience. He even sent the girl a photo of his erect penis. Braden made arrangements to meet the minor at a gas station in Bremen, Georgia. While traveling to the gas station, he sent the girl a message confirming that she was 14 years old. When Braden showed up near the gas station, he was pulled over and arrested by Bremen Police Department officers. Like before, the 14-year-old girl was actually an undercover police officer.

Christopher Bradley Braden, 40, of Jasper, Alabama was charged in a federal indictment with two counts of enticing a minor to engage in illegal sexual activity. He pleaded guilty to one count, which carries a mandatory minimum sentence of 10 years in prison. Sentencing is scheduled for October 11, 2018, at 10:00 a.m. before U.S. District Judge Timothy C. Batten, Sr.

This case is being investigated by the Federal Bureau of Investigation, with assistance from the Marietta Police Department and the Bremen Police Department.

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

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

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

ATLANTA – Melvin Thomas, a former correctional officer at the U.S Penitentiary in Atlanta (“USP Atlanta”) was sentenced to federal prison for accepting bribe payments in exchange for smuggling contraband into the prison.

“Thomas reneged on his oath of office by violating the laws he pledged to uphold,” said U.S. Attorney Byung J. “BJay” Pak. “This type of conduct will not be tolerated, and the defendant will now be held accountable for his betrayal of the public trust, as well as his disloyalty to his fellow correctional officers.”

“Smuggling contraband into federal prisons compromises the safety of correctional officers and inmates.  For that reason, the OIG takes very seriously investigations of this nature,” said Robert A. Bourbon, Special Agent in Charge of the Department of Justice Office of the Inspector General’s Miami Field Division.

According to U.S. Attorney Pak, the charges and other information presented in court:  From approximately July 2009 to April 2017, Thomas was a correctional officer at USP Atlanta, a medium-security federal prison for male inmates that is operated by the Federal Bureau of Prisons. USP Atlanta prohibits inmates from using or possessing tobacco products. As a correctional officer, Thomas accepted several bribe payments from an inmate in exchange for smuggling tobacco into the prison. In total, the inmate paid Thomas approximately $3,500 for the contraband that he smuggled into the prison. 

Melvin Thomas, 40, of Rocky Mount, North Carolina, was sentenced by U.S. District Judge Timothy C. Batten, Sr. to one year, one day in prison to be followed by two years of supervised release. He was also ordered to pay a $3,500 fine. Thomas pleaded guilty to bribery of a public official on April 10, 2018. 

This case was investigated by the Department of Justice Office of Inspector General.

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

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