Northern District of Georgia

ATLANTA - Mitzi Bickers has been arraigned on 11 federal charges including conspiring to commit bribery, wire fraud, money-laundering, federal obstruction and tax fraud.  Bickers was indicted by a federal grand jury on March 27, 2018.

“City of Atlanta contracts always should go to the most qualified bidder through a contracting process that is fair and transparent,” said U.S. Attorney Byung J. “BJay” Pak.  “Instead, Mitzi Bickers allegedly conspired to use her influence as a high-ranking City of Atlanta official and later as a connected political consultant to steer lucrative city contracts to Elvin R. Mitchell, Jr., Charles P. Richards, Jr., and their companies through bribery.  The illicit arrangement netted over $2 million in bribes for Bickers and almost $17 million in city contracts for Mitchell and Richards, and has shaken the public’s trust in the city’s contracting process.”

“The actions of Bickers, alleged in this indictment, traded the public’s trust in a fair bidding process for personal gain,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “The FBI and its partners in law enforcement will not tolerate those who choose to try to influence established and proper government procedures.”

“Public officials need to be reminded of the trust and duty bestowed upon them by the taxpayers to serve the public’s interest not their own,” said Thomas J. Holloman, Special Agent in Charge, IRS-Criminal Investigation.  “When public officials and those seeking to do business with them break this trust by committing fraud, they will be charged to the fullest extent of the law.”

According to U.S. Attorney Pak, the charges, and other information presented in court:   As the City of Atlanta’s Director of Human Services and after leaving employment with the city, Bickers allegedly conspired with contractors Elvin R. Mitchell, Jr. and Charles P. Richards, Jr. to accept bribe payments for herself and other public officials in exchange for the her agreement to obtain city contracts for Mitchell’s and Richards’ companies.  Both Mitchell and Richards have pleaded guilty to paying bribes to Bickers and are currently serving federal prison sentences for their crimes.

In 2009, Bickers worked on the mayoral campaign and began working for the City of Atlanta after the election.  From February 2010 to May 22, 2013, Bickers served as the City of Atlanta’s Director of Human Services.  Beginning in 2010, Mitchell and Richards agreed to pay bribes to Bickers to secure profitable City of Atlanta contracts for their businesses.  At times, the bribe payments allegedly were referred to as “up-front money.” In reality, Mitchell and Richards often paid Bickers when their companies actually received City of Atlanta contract work. 

In exchange for the bribe payments, Bickers promised to represent Mitchell, Richards and their companies on matters relating to City of Atlanta contracting, even though she was a high-level city employee at the time.  Bickers also allegedly provided Mitchell and Richards with sensitive contracting information during the critical time when they were bidding on city contracts.  Between 2010 and 2013, Mitchell’s and Richard’s companies received multi-million dollar contracts with the city for snow removal, sidewalk repair and maintenance, and bridge reconstruction.

In effort to conceal her relationship with Mitchell and Richards, Bickers allegedly filed numerous false City of Atlanta Financial Disclosure Forms.  For example, in 2011, Bickers swore under penalty of perjury that she had no financial relationships with any outside businesses, even though Mitchell’s and Richards’ companies paid her over $650,000 in that year.  She used much of this money to purchase a $775,000 lakefront home in Jonesboro, Georgia, making a down payment of over a half million dollars.  In that same year, Bickers also allegedly claimed on her taxes that she made only $57,896 as a city employee, resulting in a $3,924 tax refund from the IRS.

In 2013, Bickers’ financial ties to the Pirouette Companies came to light and Bickers resigned her position with the City of Atlanta.  After her resignation, Bickers, Mitchell, and Richards allegedly continued the bribery scheme.  For example, Bickers helped Mitchell secure a multi-million dollar contract for snow and debris removal work after a snowstorm locked down Atlanta in 2014.  In turn, Mitchell paid Bickers and companies associated with her hundreds of thousands of dollars in bribes.  Bickers spent the proceeds of the bribery at stores like Gucci and on expensive vacations, home renovations, four Yamaha WaveRunners, a sports utility vehicle and an ATV.  Bickers is also charged with money laundering for purchasing an SUV and four WaveRunners with bribery proceeds from an account held by the Bickers Group, which was her political consulting company. 

Ultimately, between 2010 and 2015, Mitchell and Richards allegedly paid Bickers and companies associated with her over $2 million in an attempt get City of Atlanta contracts through bribery.  In this same period, the City of Atlanta paid Mitchell’s and Richards’ businesses approximately $17 million for the government contracts they secured.

In September 2015, Mitchell began cooperating with FBI’s investigation into corruption at City Hall.  On September 11, 2015 at approximately 5:30 a.m., Shandarrick Barnes threw a concrete block  reading “ER, keep your mouth shut!” through a plate glass window in Mitchell’s home.  Bickers is alleged to have played a role in this attempt to obstruct the federal investigation.  Barnes will be sentenced by District Court Judge Steven C. Jones on April 9, 2018. 

Mitzi Bickers, 51, of Atlanta, Georgia, was arraigned today before U.S. Magistrate Judge Russell G. Vineyard.  Members of the public are reminded that the indictment only contains charges.  The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.

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

First Assistant U.S. Attorney Kurt R. Erskine and Assistant U.S. Attorney Jeffrey W. Davis 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.

Bickers Indictment

ATLANTA - The deadline for individuals to file their tax returns is quickly approaching. Most will file their taxes and await their refund with no issues or concerns. However, some may encounter an unexpected impediment – an unscrupulous return preparer who took advantage of them, or their identity was stolen and a tax refund has already been claimed in their name by a thief.

“Unfortunately, criminals use tax season to prey on unsuspecting taxpayers,” said U.S. Attorney Byung J. “BJay” Pak.  “Remember to be diligent in your tax preparation and beware of offers that sound too good to be true.” 

“With the April 17th tax deadline forthcoming, it is important for people to have confidence that when they pay and file their taxes, their fellow Americans are doing the same,” said Thomas J. Holloman, Special Agent in Charge, IRS Criminal Investigation.  “During these times, every citizen and taxpayer must stay vigilant and aware of the various tax schemes being perpetrated in order to safeguard their identities from being compromised.” 

The U.S Attorney’s Office for the Northern District of Georgia, along with IRS-Criminal Investigations and other law enforcement partners, is actively engaged in combating tax preparing cheats and identity thieves. The following cases highlight some of the work done by the U.S. Attorney’s Office and its law enforcement partners over the past year relating to tax fraud.

Anthony Adewale Oloko and Temilola M. Brown 

Anthony Adewale Oloko used stolen taxpayer personally identifiable information (PII) to file fraudulent tax returns with the IRS and then directed the tax refunds into fraudulently opened bank accounts.  Between February 2014 and February 2017, Oloko filed 139 fraudulent returns totaling $886,895 in refunds.  Of these 139 filed returns, nine refunds were actually issued by the IRS, totaling $27,129.  The remainder of the fraudulent returns were successfully flagged by IRS systems.              

Temilola M. Brown, who worked with Oloko opened a fraudulent bank account using a false name and identification.  The investigation revealed that five fraudulent refunds totaling $37,320 were attempted to be directed into that account, but only one refund in the amount of $9,472 was actually deposited into the account.  In addition, surveillance footage revealed Brown withdrawing money from ATMs in Mableton and Cumberland, Georgia.

Anthony Adewale Oloko was sentenced on February 12, 2018, to four years and three months in prison.  Temilola M. Brown was sentenced on February 13, 2018, to one year and one day in prison, in connection with a scheme to use stolen taxpayer PII to file fraudulent tax returns with the IRS and then direct the tax refunds into fraudulently opened bank accounts.  Both Oloko and Brown had previously pleaded guilty to theft of public money charges, and Oloko also pleaded guilty to one count of aggravated identity theft.

This case was investigated by Treasury Inspector General for Tax Administration (TIGTA), and Assistant U.S. Attorney Michael Herskowitz prosecuted the case.

Leshanda Hunte and Raphael Menard

On February 16, 2018, Leshanda Hunte was convicted by a jury of one count of conspiracy to commit theft of government money and five counts of theft of government money.  Hunte's husband, Raphael Menard, was also charged in the case.  He pleaded guilty to conspiracy to commit theft of government money in January 2018. 

Hunte and Menard operated a tax refund scheme that involved filing false federal tax returns using the names and Social Security numbers of real people, but with false financial information that created the impression that the filer was owed a sizeable refund.  The tax victims were elderly, disabled, and in some cases had died before the returns were filed.  The IRS then issued tax refunds, every penny of which made its way to four bank accounts opened by Hunte and Menard in Dunwoody, Georgia.  Using this scheme, Hunte and Menard stole more than $100,000 in tax refunds in just two months in the fall of 2012, although the evidence at trial established that the tax refund scheme had been operating at least as early as November 2011.  The bank account activity showed that Hunte and Menard used the stolen tax refund money to finance their own lifestyle, including expenditures for rent, travel and expensive restaurants.

The tax refund scheme unraveled after astute employees at the bank noticed the suspicious refund activity and froze the Hunte-Menard accounts.  When three bankers told Hunte why they froze the accounts, Hunte responded that she was a tax preparer and that the refund checks belonged to her “clients.”  The bankers told Hunte that she would have to bring each client into the bank to sign a release before the bank could pay out the money.  A few days later Hunte brought a man into the bank whom she presented as a client; in reality, the man was her cousin and roommate.  After being deceived, the bank gave Hunte $8,573 in cash.  Two days later, Menard went to the bank and tried the same trick.  This time, however, a banker noticed that the third party presented a fake ID and she called the Dunwoody Police Department, who arrested Menard and the other man. 

Hunte, 34, and Menard, 32, of Marietta, Georgia, will be sentenced before U.S. District Court Judge William S. Duffey, Jr., on May 8, 2018.  Hunte and Menard each face a maximum of five years’ imprisonment for their conspiracy convictions.  Hunte also faces an additional sentence of up to ten years' imprisonment for each of the five substantive theft convictions.

This case is being investigated by the Internal Revenue Service Criminal Investigation, with valuable assistance from the U.S. Postal Inspection Service.

Assistant U.S. Attorneys Trevor Wilmot and Samir Kaushal are prosecuting the case.

Calvin C. Barnes, Sharon Ceacal, Kenneth Cottrell, Zechariah Daniel, Derrick Lawson, Reynolds Scott III, Anthony Shivers and Calvin C. Williams

Eight members of a large Atlanta-based tax fraud and money laundering conspiracy have been sentenced for their roles in stealing funds from the U.S. Treasury.  

In 2009, 2010, 2011 and 2012, members of the conspiracy filed and caused to be filed over 100 fraudulent corporate tax returns, claiming $35 million in refunds for fuel taxes falsely claimed to have been paid on fuel purchased for off-road company vehicles.  The IRS actually paid the co-conspirators over $5.6 million from those falsely claimed tax refunds, before those losses were stopped at the time of the first arrest in this investigation in May 2012.  The false claims were made in the names of hijacked corporations and shell companies, none of which used off-road vehicles or paid the fuel tax claimed for refund.

Kenneth Cottrell, who has worked as a tax preparer, was personally involved in the preparation of some of the fraudulent returns.  Calvin L. Barnes, Sharon Ceacal, Zechariah Daniel, Derrick Lawson, Reynolds Scott III and Calvin C. Williams were primarily involved with negotiating the fraudulently obtained refund checks and distributing the proceeds to coconspirators. Anthony Shivers assisted his brother Charlie Shivers III with whatever needed to be done in the conspiracy.

U.S. District Judge Thomas W. Thrash imposed sentences on the eight defendants, who had all pleaded guilty, as follows:

•Calvin L. Barnes, a/k/a “Big Cal”, 36, of Forest Park, Georgia, was sentenced to one year and one day in prison.

•Sharon Ceacal, 51, of Warner Robins, Georgia, was sentenced on August 2, 2017 to a year and a day in prison.

•Kenneth Cottrell, 33, of Atlanta, Georgia, was sentenced on July 31, 2017 to six months in prison.

•Zechariah Daniel, a/k/a “Zech”, a/k/a “Leroy Harris”, 36, of Atlanta, Georgia, was sentenced on August 2, 2017 to two years, four months in prison.

•Derrick Lawson, 43, of Lithonia, Georgia, was sentenced on August 3, 2017 to one year, six months in prison.

•Reynolds Scott III, 49, of Atlanta, Georgia, was sentenced on August 2, 2017 to four months in prison.

•Anthony Shivers, 47, of Lovejoy, Georgia, was sentenced on May 1, 2017 to three years, five months in prison.

•Calvin C. Williams, a/k/a “Lil’ Cal”, 48, of Smyrna, Georgia, was sentenced on August 2, 2017 to 10 months in prison.

This case was investigated by the IRS Criminal Investigation, the U.S. States Secret Service, and Assistant U.S. Attorney Alana R. Black prosecuted the case. 

Jahmir Antoine Robinson

From April 2011 through April 2012, Jahmir Robinson ran a scheme to defraud the United States by filing false federal income tax returns using stolen identities. Robinson obtained personal identity information, including names, Social Security numbers, and dates of birth, of true individuals to file federal tax returns without their authorizations.  To circumvent IRS checks and balances, Robinson obtained Employer Identification Numbers (EINs) from the IRS for 17 individual corporations and filed fictitious Forms 944 so that the IRS database would automatically match employer income tax withholdings against the individual returns.

In total, Robinson used the stolen identities and EINs to file 153 fraudulent individual tax returns with the IRS for tax years 2010 and 2011.  Robinson caused the IRS to disburse refunds to an account he controlled. As a result of the scheme, Robinson caused a tax loss totaling $409,114.27.

Jahmir Antoine Robinson, 35, of Lithonia, Georgia, was sentenced by U.S. District Judge Leigh Martin May to four years, six months in prison in federal prison, four years of supervised release, and ordered to pay $240,033.33 in restitution.  He was convicted on these charges on November 8, 2017, after he pleaded guilty.  Robinson was sentenced for running a stolen identity refund fraud (SIRF) scheme after he stole the identities of 153 people, and caused a tax loss of approximately $409,000.

This case was investigated by the IRS Criminal Investigation, and Assistant U.S. Attorney Bernita B. Malloy prosecuted the case.

Kim Earlycutt, Shannon King, and Marcia Farmer

Three defendants, Kim A. Earlycutt, Shannon A. King, and Marcia Farmer, obtained identity documents of foreign nationals and forged foreign identity documents in connection with their work at T&K Tax Services and More, which Earlycutt partially owned.  Using these identity documents, the defendants submitted IRS W-7 forms to get individual taxpayer identification numbers (ITINs).  The defendants then created false and fraudulent tax claim forms, specifically Forms 1040, or individual income tax returns, using these ITINs.  Included with these Forms 1040 were falsified W-2 forms, which had fraudulent employer information, income, withholding amounts, and deduction amounts. 

 The defendants filed the fraudulent tax returns with the IRS, by mailing them and by using T&K’s electronic filing number.  The tax returns all contained requests for refunds which were not actually due.  The defendants enriched themselves by retaining a portion of the tax refunds that had been fraudulently obtained, including in some instances the entire refund.  In all, they sought refunds in excess of $7 million and actually received over $5 million in fraudulent refunds.  They used these fraudulent funds to pay personal expenses, including paying their personal automobile insurance.  One defendant, Kim Earlycutt, used the fraudulent funds for gambling.

 Kim A. Earlycutt, 54, of Covington, Georgia, was sentenced on August 25, 2017, to nine years in prison and ordered to pay restitution in the amount of $5,222,634.

 Shannon A. King, 37, of Lithonia, Georgia, was sentenced on August 24, 2017, to four years, six months in prison and ordered to pay restitution in the amount of $2,596,169.

Marcia Farmer, 51, of Snellville, Georgia, was sentenced on August 29, 2017, to one year, six months in prison to be followed by nine months of home confinement and was ordered to pay restitution in the amount of $3,370,811.   

All three were sentenced by U.S. District Judge Leigh Martin May.

This case was investigated by Internal Revenue Service Criminal Investigation, the U.S. Postal Inspection Service, and the U.S. Secret Service.

Assistant U.S. Attorney Christopher J. Huber prosecuted the case.

Shamil Dean

Tax preparer, Shamil Dean was sentenced to two years in prison for her role in stealing fraudulently obtained tax refunds payable to another person.  Dean maintained two bank accounts into which she deposited $147,318.64 through electronic deposits and paper U.S. Treasury checks.  These funds were fraudulently obtained tax refunds, from returns filed in the names of identity theft victims.  Dean transferred or withdrew the proceeds from the fraudulent refunds shortly after depositing them. 

On May 3, 2017, U.S. District Judge Leigh Martin May sentenced Dean to two years in prison.  Dean was also ordered to pay $110,773.55 in restitution.  Dean had pleaded guilty to a single count of aggravated identity theft on February 22, 2017.

The case was investigated by IRS Criminal Investigation, and Assistant U.S. Attorney Alana R. Black and David M. Zisserson and Charles M. Edgar of the Department of Justice, Tax Division prosecuted the case.

Gianna C. Liady

Gianna C. Liady co-owned K-1 Financial, a tax return preparation firm operating in Atlanta, Georgia.  In November 2017, Liady pleaded guilty to a one-count Information charging her with assisting in the preparation and filing of a false federal income tax return.  Liady prepared and filed false tax returns on behalf of K-1 Financial’s customers causing a tax loss to the United States of approximately $197,506.

U.S. District Court Judge Eleanor L. Ross sentenced Liady to serve one year, three months in prison and to pay restitution in the amount of $197,506.

This case was investigated by IRS Criminal Investigation. 

Assistant U.S. Attorney Bernita B. Malloy and Trial Attorney Sean Beaty of the Justice Department’s Tax Division prosecuted the case.

Go to https://www.irs.gov/ and click on 2018 Dirty Dozen for more on tax schemes.

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 – Elisabeth Greenhill and Jonathan Greenhill have been charged for running a fraud scheme that targeted faith-based and humanitarian groups conducting mission work overseas. 

“These defendants allegedly lined their pockets with money that a number of groups had raised to conduct charitable work overseas,” said U.S. Attorney Byung J. “BJay” Pak. “Fraud schemes that target faith-based and humanitarian groups continue to grow in number and complexity.  Charitable groups should always make certain that a reputable business is helping them make arrangements for their mission work.”

“There are many people who suffered from this alleged fraud, including the needy, the generous groups who volunteer their time and money, and the travel agencies who provide the means for the good work to reach the needy,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “The FBI will always make it a priority to prosecute anyone who tries to take advantage of the generosity and kindness of our citizens.”

According to U.S. Attorney Pak, the charges, and other information presented in court: Elisabeth Greenhill and Jonathan Greenhill operated “Mission Trip Airfare,” a travel agency that specialized in booking trips for faith-based and humanitarian groups conducting mission work overseas.  Mission Trip Airfare typically purchased tickets from other travel agencies for its customers.

The indictment alleges that beginning in 2015, the defendants accepted funds from faith-based and humanitarian groups for tickets but failed to send these funds to the travel agencies doing business with Mission Trip Airfare.  Instead of paying the travel agencies, the defendants used the client funds for their own personal benefit.  Once the travel agencies threatened to stop doing business with Mission Trip Airfare, the defendants began using new customer funds to pay down the outstanding balances with the travel agencies.  During this timeframe, the defendants also continued to use customer funds for their own personal benefit.  After the faith-based and humanitarian groups started to complain about not receiving tickets, the defendants falsely stated that Mission Trip Airfare was in the process of issuing refunds.  The indictment further alleges that the defendants continued to misappropriate customer funds even after the faith-based and humanitarian groups contacted them asking for refunds. 

The defendants’ fraud scheme allegedly caused the travel agencies and the faith-based and humanitarian groups to lose hundreds of thousands of dollars, the vast majority of which the defendants allegedly used for their own personal benefit. 

Elisabeth Greenhill, 55, of Roswell, Georgia was arraigned today before U.S. Magistrate Judge Russell G. Vineyard.  Jonathan Greenhill, 48, of Atlanta, Georgia has not yet been arraigned. 

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 FBI.

Assistant U.S. Attorney Thomas J. Krepp is prosecuting the case.

Members of the public who believe they were impacted by this scheme are encouraged to contact the FBI at (404) 679-9000.

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. - Brandon Eugene Williams has pleaded guilty to distributing the hallucinogenic drugs LSD and dimethyltryptamine (“DMT”) to an FBI informant on two occasions.

“This defendant willingly distributed almost 200 hits of LSD and quantities of DMT to an FBI informant,” said U.S. Attorney Byung J. “BJay” Pak. “These drugs are very dangerous if ingested. We will continue to vigorously investigate and prosecute individuals who distribute these drugs.”

“Every time we put a drug dealer in prison, it makes our communities a bit safer,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “Hopefully, Williams sentence will give him time to think about changing his direction in life.”

According to U.S. Attorney Pak, the charges and other information presented in court: Brandon Eugene Williams and another individual met with an FBI informant on April 13, 2017, to discuss distributing DMT and other drugs. It was at that meeting that he gave the informant a sample of DMT.  

On June 4, Williams advised the informant that he had a sheet of LSD hits to sell.  Later, on June 6, he sold the informant a sheet containing 97 hits of LSD and another quantity of DMT.  Then in early July, Williams and the informant discussed a second deal for LSD and DMT.  Later that month, on July 19, Williams delivered to the informant another 100 hits of LSD and more DMT.  After the informant advised surveillance agents that the drugs had been received, the agents arrested Williams.

Sentencing for Brandon Eugene Williams, 31, of Atlanta, Georgia, has not yet been scheduled.  Williams pleaded guilty March 29, 2018.

 This case is being investigated by the FBI and members of the North Georgia Major Offenders Task Force (NGMOTF).  The NGMOTF is a FBI led, Safe Streets Task Force, with members from the Cherokee County Sheriff’s Office, Gainesville Police Department, Georgia Bureau of Investigation, Hall County Sheriff’s Office, and Lumpkin County Sheriff’s Office.

Assistant U.S. Attorney William L. McKinnon, Jr. is prosecuting the case.

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

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

NEWNAN, Ga. - Abubakar Sakapala and Alick Banda have been charged by a federal grand jury with drug conspiracy and possession charges for transporting cocaine from Texas to Georgia in a tractor-trailer.  Their scheme was uncovered during a general motor carrier compliance inspection on Interstate 20 in Haralson County, Georgia.

“Sakapala and Banda allegedly transported cocaine to Georgia with a street value of approximately $5.8 million,” said U.S. Attorney Byung J. “BJay” Pak.  “However, thanks to the efforts of our law enforcement partners, these defendants were stopped before they had a chance to deliver this poison to our streets.”

“This cocaine posed a clear and present danger to the citizens of this country, however, because of great police work these drugs will never reach the intended consumer,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “The successful prosecution of this case illustrates that fruitful results can be achieved through the cooperative efforts of federal, state and local law enforcement.”

According to U.S. Attorney Pak, the indictment, and other information presented in court: On March 13, 2018, Georgia State Patrol (“GSP”) stopped a tractor-trailer traveling along Interstate 20 in Haralson County, Georgia for a general motor carrier compliance inspection.  Sakapala was driving the tractor-trailer at the time.  GSP found Banda allegedly attempting to hide in the sleeper compartment of the tractor by laying under some covers.

GSP questioned Sakapala, who gave them inconsistent statements about how he had acquired the tractor-trailer.  GSP examined Sakapala’s driver’s log and noticed he falsely reported that he was off duty at the time of the stop.  GSP also questioned Banda, who told them he had driven the tractor-trailer during parts of the trip.

Upon obtaining consent to search the tractor and trailer, GSP opened the trailer and immediately observed that the back wall of the trailer was made out of plywood. GSP removed the plywood and found a concealed compartment, or “trap,” with a sheet metal door.  From the trap, GSP removed seven bags, which contained approximately 152 individually wrapped kilogram-sized bundles of cocaine. The approximate street value of this cocaine is $5.8 million.  DEA agents were called to the scene to seize the drugs, taking Sakapala and Banda into custody.

Abubakar Sakapala, 40, of Calverton, Maryland, and Alick Banda, 27, of Richardson, Texas have been charged by a federal grand jury with drug conspiracy and drug possession charges for transporting cocaine from Texas to Georgia in a tractor-trailer.   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 Drug Enforcement Administration.

Assistant U.S. Attorney DeLana Jones is prosecuting the case.

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

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

ATLANTA – Donquell Weddington has been indicted on federal charges of distributing heroin to an individual which resulted in serious injury and death, as well as three additional counts of distributing heroin and cocaine in 2017 and 2018.  This case was presented as part of Operation SCOPE. 

“Weddington’s alleged heroin distribution led to a drug overdose which resulted in a death in our community,” said U.S. Attorney Byung J. “BJay” Pak.  “Operation SCOPE does not just apply to those who prescribe opioids, it also targets drug traffickers who allegedly distribute heroin, fentanyl, or opioids that cause death or serious injury to users. We have a zero tolerance for those who destroy lives through the distribution of drugs like heroin.”

“In this case, the death of a person addicted to heroin strikes at the core of this country’s opioid epidemic,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division.  “Donquell Weddington allegedly provided the victim in this case with a deadly dose of heroin. The mission of DEA is unwavering--we combat drug traffickers by investigating and prosecuting those who criminally distribute drugs, which ultimately cause immeasurable damage and even death to those in our communities. This case is a perfect example of how the law enforcement community and the U.S. Attorney’s Office work together to remove such criminals from its streets.”

“The Georgia Bureau of Investigation is proud to partner with local, state, and federal agencies in battling the opioid/heroin epidemic,” said GBI Director Vernon Keenan.  “This indictment serves as notice that drug dealers will be held accountable for the consequences of the dangerous drugs they sell.”

“We will not stand by and allow these criminals distributing drugs throughout our city to do so unchecked,” said Atlanta Police Chief Erika Shields.  “The relationship we have with our local, state and federal partners is invaluable and with them, we will continue the fight against the distribution of dangerous drugs in our communities.”

According to U.S. Attorney Pak, the charges, and other information presented in court: On the morning of April 10, 2017, Donquell Weddington allegedly sold heroin to an individual after days of negotiating the deal by telephone. Later that day, the buyer suffered a drug overdose in the lobby of an office building in the Buckhead area of Atlanta, Georgia. Paramedics transported the person to Piedmont Hospital where the individual was treated for symptoms related to a heroin overdose.

The person was released from the hospital later that evening, and proceeded to Hartsfield-Jackson Atlanta International Airport intent on catching a flight to New York. Instead, the individual collapsed in the T-Gate Concourse of the airport and died the following morning from a heroin overdose.

Months later, Weddington allegedly sold heroin and cocaine on three separate occasions in the Northern District of Georgia.

Donquell Weddington, 24, of Atlanta, Georgia, will be arraigned at a later date.  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 DEA, the Georgia Bureau of Investigation, and the Atlanta Police Department.

Assistant U.S. Attorney Nicholas Hartigan is prosecuting the case.

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

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

GAINESVILLE, Ga. – Twin brothers Kecole Dukes and Kemeca Dukes have been convicted of conspiracy to distribute and distribution of crack cocaine.  Both Dukes’ were on parole having recently served a sentence for selling crack cocaine.

“Crack cocaine is still a scourge in our communities,” said U.S. Attorney Byung J. “BJay” Pak. “These defendants are career offenders, and have multiple convictions for distributing crack cocaine in the past.  “They are now facing lengthy sentences in federal prison where there is no parole.”

“Removing drugs and the criminals who illegally deal in them has a positive impact in our communities and contributes to stabilizing those areas which are more susceptible to violent criminal activity,” said ATF Atlanta Special Agent in Charge Arthur Peralta. “This sentence should serve as a deterrent to those who destroy their communities by flooding their streets with drugs.  Our communities have had enough and it’s though collaborations with our federal, state, local, and community partners that we can have a positive and long lasting effect.”

“We appreciate the efforts of the ATF and Hall County MANS Unit in investigating and apprehending these individuals who continued to distribute crack cocaine into the Gainesville community after having been convicted multiple times on drug offenses,” said Northeastern Judicial Circuit District Attorney Lee Darragh. “We would also like to thank the jurors for their service and verdict.”

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.

During the conspiracy 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.

On March 23, 2018, Kemeca Dukes, 40, of Gainesville, Georgia pleaded guilty to one count of distributing crack cocaine.  On March 29, 2018, Kecole Dukes, 40, also of Gainesville, Georgia was found guilty by a federal court jury of conspiring to possess with intent to distribute at least 28 grams of crack cocaine and distributing at least 28 grams of crack cocaine and three counts of distributing crack cocaine.

Sentencing for the Dukes’ has not yet been scheduled.

This case was investigated jointly by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Hall County MANS Unit.

Assistant U.S. Attorneys William L. McKinnon, Jr. and Erin E. Sanders and 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 - Charles Blackman, a/k/a Ralph Jones, Stephanie Price, a/k/a Rhonda Johnson, Joseph Payne, and Quinton Williams have been arraigned on federal charges of conspiracy to commit wire fraud.  Blackman, Price, Payne and Williams were indicted by a federal grand jury on March 20, 2018.

“Blackman and his accomplices allegedly conspired to ‘ticket switch’ and defraud Home Depot of merchandise valued in excess of $300,000,” said U.S. Attorney Byung J. “BJay” Pak.  “Honest, hardworking citizens are the ones who ultimately pay the price for thieves who seek to steal from businesses.”

“This case illustrates not just the significance of an aggressive approach to combat this type of fraud, but it also illustrates the importance of partnerships,” said Kenneth Cronin, Special Agent in Charge of the U.S. Secret Service, Atlanta Field Office. “We will continue to work closely with prosecutors to ensure offenders like Blackman and his conspirators are put behind bars.”

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 Home Depot 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; Stephanie  Price, a/k/a Rhonda Johnson, 51; Joseph Payne, 54; and Quinton Williams, 52, all of Atlanta, Georgia, were arraigned before U.S. Magistrate Judge Justin S. Anand.  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. Secret Service. The Woodstock Police Department and Cherokee County District Attorney’s Offices contributed to this case.

Assistant U.S. Attorney Cassandra J. Schansman is prosecuting the case.

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

 

ATLANTA - The U.S. Attorney’s Office for the Northern District of Georgia has announced that Georgia Bone & Joint (GBJ), Southern Bone & Joint a/k/a Summit Orthopaedic Surgery Center (Summit Surgery Center), Southern Crescent Anesthesiology, PC (SCA), Sentry Anesthesia Management, LLC (Sentry), and David LaGuardia (LaGuardia) agreed to pay $3.2 million to settle allegations that LaGuardia, Sentry, and SCA provided a free medical director to Summit Surgery Center in order to induce it to choose to perform more procedures at the surgery center rather than in the GBJ office; and that GBJ and LaGuardia caused the submission of false claims to Medicare for prescription drugs purchased outside of the United States and not approved by the U.S. Food and Drug Administration (FDA).

“Kickbacks should never play a role in medical decision-making,” said U.S. Attorney Byung J. “BJay” Pak.  “It is critical to our health care system that patients seeking health care know that their providers’ recommendations are based on what is in the patient’s best interests and not influenced by illegal kickbacks or arrangements.” 

“Decisions on where and how patients’ medical procedures are performed should never be made based on thinly veiled bribes, as was alleged in this matter,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services.  “Such alleged schemes will be aggressively investigated and prosecuted.”  

“Abuses of the healthcare system destroy the basic trust between providers and patients, between taxpayers and government,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “The FBI and its federal partners make it a priority to make sure funds are not hijacked by those willing to misuse taxpayer dollars, thereby violating individuals who count on our healthcare programs for their medical needs.”

“This settlement sends a clear message to all healthcare providers that fraudulent activities intended to defraud federal benefit programs are a federal crime that carries serious consequences and will not be tolerated,” said U.S. Postal Service, Office of Inspector General Special Agent in Charge Imari Niles. “The USPS-OIG, along with our law enforcement partners, will continue to aggressively investigate those who engage in fraudulent activities intended to defraud federal benefit programs and the Postal Service.”

This civil settlement resolves a lawsuit filed in the U.S. District Court for the Northern District of Georgia by Sharon Kopko, former Practice Administrator for SBJ, under the qui tam, or whistleblower provisions of the False Claims Act.  United States ex rel. Sharon Kopko v. Georgia Bone and Joint, et al., Civil Action No. 3: l 3-CV-067-TCB.  Under the False Claims Act, private citizens may bring suit for false claims on behalf of the United States and share in any recovery obtained by the government; Ms. Kopko will receive a share of the settlement. 

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

This case was investigated by the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Department of Health & Human Services Office of Inspector General, the FBI and the U.S. Postal Service Office of Inspector General.

The civil settlement was reached by Assistant U.S. Attorneys Darcy Feuerzeig Coty and Neeli Ben-David.

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. - Maurice Antonio Kent, Christopher Nwanjoku, Jamel Dupree Hughes, Cedric Sams, Jr., Jennifer Foutz, and Michael Kent, all members or associates of the street gang 135 Pirus, have been arrested on federal charges ranging from conspiracy to obstruct justice to murder in aid of racketeering.  A federal grand jury returned the nine-count indictment on March 21, 2018, which was unsealed earlier today.  

“Gangs, like the 135 Pirus drive violence in our communities and show no regard for human life,” said U.S. Attorney Byung J. “BJay” Pak.  “The members and associates in this case were allegedly involved in a multitude of violent acts, including a murder, and are being prosecuted under our Project Safe Neighborhoods initiative aimed at stopping this very criminal activity.”

“It appears in this case that 135 Pirus gang members are willing to kill or violently assault someone for the smallest perceived sign of disrespect,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “The FBI led Safe Streets Gang Task Force, along with its local partners, will continue to devote significant resources to the task of dismantling violent gangs that do so much harm to our communities.”

“The residents of Bartow County benefit from this partnership which not only brings together local and federal resources to combat violent crime, but it also erases jurisdictional lines between agencies producing a maximum investigative effort. We are thankful to be a part of PSN and our community is safer because of this program,” said Bartow County Sheriff Clark Millsap

“The PSN strategy is proving itself once again to be effective in reducing gang violence and gun related crime,” said Chief Gary Yandura, Brookhaven Police Department.  “The Brookhaven Police Department is proud to be the lead agency for this PSN grant aimed at strengthening our anti-gang strategy.  Joining forces with Chamblee Police Department and the DeKalb County Police Department, as well as our federal partners and our research and prevention partners, has resulted in significant and strategic investigations such as this to ultimately reduce gang violence in our communities.” 

“We are thankful for the communication and the relationships that are in place between our local and Federal partners. Gangs and criminal activity does not stop at jurisdictional lines.  Criminals such as these will be identified and taken off the streets because of professional law enforcement agencies partnering together to combat gang activity,” said Acworth Police Chief Wayne Dennard.

According to U.S. Attorney Pak, the charges, and other information presented in court: The 135 Pirus gang originated in Compton, California, and expanded into the Northern District of Georgia, dividing itself into a Southside/Atlanta group, a Northside/North group, and a Northwest Georgia group.  Leaders of the gang in Georgia maintain ties with the California gang leadership.  The 135 Pirus are governed by a set of rules, codes, laws, and oaths, which, among other things, call for death of any gang member who cooperates with law enforcement.

To become a 135 Pirus member, a recruit, or a “550,” must be sponsored by an existing gang member.  A potential new member is “jumped in” or physically beaten for 35 seconds by gang members.  The gang also refers to this initiation as being “put on the hood.”  All 135 Pirus members are required to “put in work,” meaning that they must engage in acts of criminal activity such as drug dealing and violence when ordered to do so by members of gang leadership.  Members allegedly committed acts of violence, including murder, engaged in drug trafficking and other money making criminal conduct, to be promoted and maintain standing within the structure of the gang.

In the early morning hours of May 13, 2017, an argument occurred outside a Brookhaven, Georgia, nightclub.  When a California-based high-ranking 135 Pirus gang member was supposedly disrespected, Maurice Antonio Kent allegedly fired multiple rounds into a crowd of people outside the club, wounding a gang member from another gang and a security guard.  Maurice Antonio Kent was arrested by the Brookhaven Police Department at the scene.  Soon thereafter, 135 Pirus gang members came to believe that the 17-year-old, a fellow 135 Pirus gang member, was talking to the police about the shooting. 

On June 3, 2017, Christopher Nwanjoku , Jamel Dupree Hughes, Jennifer Foutz, and Cedric Sams Jr., allegedly devised a plan to lure the 17-year-old to Bartow County, Georgia, and then murder him.  The 17-year-old’s body was later discovered lying on the side of a rural road in Bartow County.

On June 7, 2017, Hughes and Foutz encountered a member of another gang at a gas station in Acworth, Georgia.   After words were exchanged, Hughes allegedly exited the passenger side of Foutz’s vehicle and shot the member of the other gang multiple times.  Fortunately, undercover police officers were at the gas station on an unrelated case, and observed the shooting.  During a short police pursuit, Hughes allegedly tossed the gun out of the car window.  The gun was recovered and Hughes and Foutz were stopped and arrested.

The federal charges result from 135 Pirus gang-related crimes including the May 13, 2017 shooting, the June 4, 2017 murder, and the June 7, 2017 shooting.  The defendants in this case are as follows:

• Maurice Antonio Kent, a.k.a. “Savage Duze,” 27, of Cartersville, Georgia, a leader of the 135 Pirus group based in Cartersville, is charged with two counts of Assault with a Dangerous Weapon in Aid of Racketeering, Discharge of a Firearm During a Crime of Violence, and Possession of a Firearm by a Convicted Felon, all related to the nightclub shooting.

• Christopher Nwanjoku, a.k.a. “Problem,” 25, of Lawrenceville, Georgia, a leader of the Northside 135 Pirus group based in Gwinnett County, is charged with Murder in Aid of Racketeering and Use of a Firearm in Furtherance of a Crime of Violence Resulting in Death, for his role in the 17-year-old’s murder.

• Jamel Dupree Hughes, a.k.a. “Savage,” 24, of Atlanta, Georgia, a 135 Pirus member, is charged with Murder in Aid of Racketeering, Use of a Firearm in Furtherance of a Crime of Violence Resulting in Death, Attempted Murder in Aid of Racketeering, and Discharge of a Firearm in Furtherance of a Crime of Violence, relating to the 17-year-old’s murder and the gas station shooting.

• Cedric Sams, Jr., a.k.a. “Awall,” 25, of Cartersville, Georgia, a member of Northwest Georgia 135 Pirus group, is charged with Murder in Aid of Racketeering and Use of a Firearm in Furtherance of a Crime of Violence Resulting in Death, for the 17-year-old’s murder.

• Jennifer Foutz, a.k.a. “Rose,” 25, of Acworth, Georgia, the “First Lady” of the Northwest Georgia 135 Pirus group, is charged with Murder in Aid of Racketeering, Use of a Firearm in Furtherance of a Crime of Violence Resulting in Death, Attempted Murder in Aid of Racketeering, and Discharge of a Firearm in Furtherance of a Crime of Violence, relating to the 17-year-old’s murder and the gas station shooting.

• Michael Kent, a.k.a. “Wikked,” 27, of Atlanta, Georgia, who is Maurice Antonio Kent’s twin brother, is charged with Conspiracy to Obstruct Justice.

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 FBI Safe Streets Gang Task Force with the assistance of the Bartow County Sheriff’s Office, Brookhaven Police Department, and Acworth Police Department.

Assistant U.S. Attorneys from the newly created Organized Crime and Gang Section of the U.S. Attorney’s Office for the Northern District of Georgia are prosecuting the case.

This case is 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 - Cephos Leyon Jamal White, a/k/a Jamal, has been sentenced to ten years, one month in federal prison for the armed robbery of a jewelry store in Conyers, Georgia in April 2017.

“White robbed four jewelry stores at gunpoint, tied the employees up, and stole jewelry worth more than $1 million,” said U.S. Attorney Byung J. “BJay” Pak.  “The cooperation between federal and local law enforcement ended this crime spree, and brought him to justice.”

“Thanks to the cooperation between our local and federal partners, White and his accomplice will be out of commission for a long time,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “Though the lives of the innocent victims they terrorized will never be the same, those victims can take solace in the fact White won’t be able to terrorize anyone else while he serves a lengthy sentence.”

“I am very proud of the efforts by our Detectives and the working relationship with the FBI and US Attorney’s Office in bringing these people to justice,” said Conyers Police Chief Gene Wilson.  “We are pleased to bring the victims in this case, and others, a sense of security after such a harrowing robbery committed by these individuals.”

According to U.S. Attorney Pak, the charges and other information presented in court: On April 18, 2017, Cephos Jamal White and Sandrika Sears went to a Kay Jewelers store in Conyers posing as a couple interested in buying a ring. The couple wore hats and sunglasses to disguise their facial features and Sears wore a wig.

After White introduced the couple as “Jamal” and “Monae,” White pulled out a gun and Sears helped him bind the two store clerks with zip-ties. White’s and Sears’s criminal scheme netted the pair a cache of jewelry with a retail value of approximately $1.5 million.

Cephos Leyon Jamal White, a/k/a Jamal, 30, of Lawrenceville, Georgia, was sentenced by U.S. District Court Judge Steven C. Jones to ten years, one month in prison to be followed by five years of supervised release.  White was convicted of these charges on December 12, 2017, after he pleaded guilty. Sandrika Sears also pleaded guilty on January 12, 2018, to the armed robbery of Kay Jewelers, but her sentencing hearing is pending.

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

Assistant U.S. Attorney Joseph Plummer prosecuted the case.

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

For further information, please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov 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 $1.5 million dollars from her employer over a six-year period, has pleaded guilty to wire fraud.

“Accountants who lie, cheat, and steal threaten the financial solvency of businesses,” said U.S. Attorney Byung J. “BJay” Pak. “Businesses must remain vigilant against fraud – all too often the perpetrator is someone they know.”

“For several years, Kemp took advantage of her position of managing the company’s payroll,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “Her guilty plea should send a message that no matter your position, you cannot profit illegally, or violate the trust of the company who hires you.”

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 (“the company”).  During that time, Kemp embezzled over $1.5 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.  She 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.    

Sentencing for Stantisha Kemp, 40, of Atlanta, Georgia, is scheduled for June 11, 2018 at 11:00 a.m., before U.S. District Judge Steven C. Jones.  

This case is being investigated by the FBI.

Assistant U.S. Attorney Kamal Ghali 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 – Jeff North, a previously convicted felon, has been sentenced to 25 years in federal prison for committing a violent carjacking and shooting the victim, and for unlawfully possessing a firearm.

“North callously shot the carjacking victim at close range when he refused to surrender his vehicle,” said U.S. Attorney Byung J. “BJay” Pak.  “As a felon, with several prior convictions for violent crimes and drug offenses, North shows no regard for the rule of law, and contempt for law abiding citizens.  This sentence will remove him from our streets and put him in federal prison where he will serve a lengthy sentence.” 

“Jeff North is a convicted felon who will be off of our streets and unable to victimize anyone for a long time,” said Acting Special Agent in Charge John Schmidt. “He will no longer be in a position to possess or use firearms. The sentence imposed by the court guarantees that our community will be safe from Mr. North for a very long time.”

According to U.S. Attorney Pak, the charges and other information presented in court: On March 23, 2015, an Atlanta Police officer was on routine patrol when a person, who was later identified as the victim of a carjacking, flagged him down.  The victim, whose shirt was soaked in blood, reported that someone had just shot him and stolen his van.  The victim then pointed toward the van as it was fleeing the scene.  The police officer stopped the van, and arrested North, who was driving the van at the time.  Inside the vehicle, the officer found a revolver along with the victim’s wallet and identification. 

At the time of the carjacking, North was a six-time convicted felon, with prior convictions for robbery, aggravated assault, aggravated battery, possession with intent to distribute heroin and cocaine, and possession of a firearm during the commission of a felony.   

Jeff North, 54, of Atlanta, Georgia was sentenced to 25 years in prison to be followed by three years of supervised release.  The court also ordered North to pay $36,010.71, in restitution.  After a trial, a jury convicted North on December 7, 2017.

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

Assistant U.S. Attorney Ryan J. Huschka 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 - Artur Sargsyan has been sentenced for the crime of criminal copyright infringement for private financial gain while operating a massive file-sharing infrastructure that distributed approximately 1 billion copies of copyrighted musical works through Internet downloads.  Sargsyan’s file-sharing websites, which contained numerous pop-up advertisements, generated significant profit for him when visitors accessed the websites to illegally download copyrighted works.

“Sargsyan operated one of the most successful illegal music sharing websites on the Internet,” said U.S. Attorney Byung J. “BJay” Pak.  “His reproduction of copyrighted musical works were made available only to generate undeserved profits for himself.  The incredible work done by our law enforcement partners and prosecutors in light of the complexity of Sargsyan’s operation demonstrates that we will employ all of our resources to stop this kind of theft.”

“Mr. Sargsyan was warned several times that he was violating the law by illegally sharing copyrighted works, but chose to ignore those warnings,” said David J. LaValley, Special Agent in Charge of FBI Atlanta. “His sentence sends a message that no matter how complex the operation, the FBI, its federal partners and law enforcement partners around the globe will go to every length to protect the property of hard working artists and the companies that produce their art.”  

According to U.S. Attorney Pak, the charges and other information presented in court: Artur Sargsyan owned and operated a number of websites including Sharebeast.com, Newjams.net, and Albumjams.com.  From at least 2012 through 2015, Sargsyan illegally distributed and reproduced copyrighted works through Sharebeast.com.  Using a network of websites that he owned and operated, including Newjams.net and Albumjams.com, Sargsyan created links to a wide swath of copyright-protected music that was stored on Sharebeast.com.  Sharebeast illegally stored and distributed works from scores of artists, including Bruno Mars, Linkin Park, Pitbull, Pharrell Williams, Gwen Stefani, Maroon 5, Ariana Grande, Destiny’s Child, Ciara, Katy Perry, Beyonce, Jennifer Hudson, Kanye West, and Justin Bieber.  Meanwhile, Sargsyan profited from the distribution of the copies of these copyrighted works.

According to the Recording Industry Association of America (“RIAA”), Sharebeast.com was the largest online file-sharing website specializing in the reproduction and distribution of infringing copies of copyrighted music operating out of the United States.  From 2012 to 2015, the RIAA sent Sargsyan over 100 e-mails notifying him that Sharebeast.com was illegally hosting and sharing copyright-infringing works.  Sargsyan continued, however, to make the copyright-infringing files available for download, disregarding the many warnings that he received.  The RIAA conservatively estimated the total monetary loss to its member companies at $6.3 billion.

Artur Sargsyan, 30, of Glendale, California, was sentenced by U.S. District Judge Timothy C. Batten, Sr., to five years in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $458,200.  He was also ordered to forfeit $184,768.87.  Sargsyan was convicted on these charges on September 1, 2017, after he pleaded guilty.

This case was investigated by the FBI.

Assistant U.S. Attorneys Samir Kaushal and Kamal Ghali prosecuted the case.  John Zacharia, formerly the Deputy Chief for Litigation for the Computer Crime and Intellectual Property Section, previously prosecuted the case.  The prosecution reflects a coordinated effort by the U.S. Attorney’s Office for the Northern District of Georgia, the Department of Justice Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS), the Office of International Affairs, the FBI’s field offices in Atlanta, Denver, Chicago, and Los Angeles, and the U.S. Attorney’s Office for the Central District of California.  Substantial assistance was provided by the United Kingdom’s National Crime Agency and the Ministry of Security and Justice in the Netherlands.

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 - Farran S. Campbell has been sentenced to four years and three months in federal prison for aggravated identity theft and conspiracy to commit wire fraud.  As part of his fraud and deception, Campbell stole identities, took out fraudulent loans, claimed automobiles were for sale that he never possessed, and even claimed he was a physician. 

“Campbell knew no limits on how far he would go to commit fraud, even committing it while charged with other crimes,” said U.S. Attorney Byung J. “BJay” Pak.  “This defendant was especially conniving as he set up bogus businesses in the names of his victims, and then used those businesses to commit his loan fraud.  With each new criminal who thinks they have developed a way to defraud, law enforcement is developing new techniques to catch them.” 

“The sentence highlights the seriousness of the defendant’s conduct,” said Thomas J. Holloman, III, Special Agent in Charge, IRS Criminal Investigation. “If you steal someone’s identity and knowingly use it to commit financial fraud, you will be sentenced to a minimum of 2 years in prison. Identity theft is a pervasive problem in our country and IRS-CI will continue to make these cases an investigative priority when they involve the filing of false refund claims and other related financial frauds.”  

According to U.S. Attorney Pak, the charges and other information presented in court:  Farran Campbell carried out a loan fraud scheme involving fake car dealerships and aggravated identity theft.  Campbell incorporated car dealerships under state law, using stolen identities.  He then used the newly organized car dealerships to apply for lines of credit from commercial lenders who specialize in “floor plan” loans to car dealers, specifically loans purportedly collateralized by the car dealer’s inventory. 

Eventually, Campbell would default on the lines of credit.  The lenders were unable to repossess the vehicles purportedly collateralizing the loan, which were often cars whose vehicle identification numbers Campbell had simply harvested from the Internet, without actually owning or possessing those vehicles.  Campbell went so far as to have a criminal associate prepare a fake tax return in the name of one of his identity theft victims.  The tax return, which was never filed with the IRS, showed substantial income and assets, and appears to have been created for the sole purpose of being provided to a lender as part of a fraudulent application for credit.

In 2014, Campbell set up a car dealership called Campbell’s Cars, LLC, using the stolen identity of O.C., a Georgia resident who had good credit, but no connection to Campbell or the business.  Campbell then used the new car dealership entity and O.C.’s good credit to obtain a loan from a commercial lender.  The lender was unable to recover its losses by repossessing the cars that were supposedly collateralizing the loan, and eventually sued O.C. to collect the debt. 

On March 31, 2017, while Campbell was on bond in another federal case, agents executed search warrants at Campbell’s home and business.  These searches caught Campbell “red-handed,” in the process of carrying out the same fraud scheme with a new lender and two new identity theft victims.  At Campbell’s workplace, agents discovered a fake ID in the name of one of Campbell’s previous identity theft victims. 

At Campbell’s home, agents discovered a complete loan package ready to be mailed to the lender from a new fake car dealership named Launch Auto Sales, more fake IDs in the names of two new identity theft victims, and pieces of paper on which Campbell had been practicing the signatures of the victims repetitively.  Shortly thereafter, Campbell’s bond was revoked and he has been in custody since April 2017.

During the case, Campbell repeatedly claimed to be a physician, even though he is not.  As part of this deception, Campbell had the same criminal associate prepare a fake income tax return for him claiming income from a local hospital and showing employment as a physician.  This tax return was never filed with the IRS, and appears to have been intended to help Campbell get approved for a rental home.  Campbell also swore out a false affidavit, which he provided to a DeKalb County Assistant District Attorney, in which he falsely claimed to be a licensed neurologist.  The affidavit was submitted to the DeKalb County prosecutor as part of an unsuccessful attempt to convince that official to dismiss a car theft case pending against a friend of Campbell’s.

On May 8, 2017, Campbell entered a negotiated plea of guilty to a criminal information charging aggravated identity theft and conspiracy to commit wire fraud.  Campbell admitted that, from at least June 2014 through September 2014, he had conspired with others to commit wire fraud victimizing the commercial lender, and that he had also committed aggravated identity theft by using the identity of O.C. to apply for credit from the lender. 

Farran S. Campbell, 32, of Brookhaven, Georgia, was sentenced on Tuesday March 20, 2018, by U.S. District Judge Eleanor L. Ross, to four years, three months in prison to be followed by three years of supervised release, and ordered him to pay restitution in the amount of $31,724.70. 

This case was investigated by the Internal Revenue Service, Criminal Investigation, and the U.S. Secret Service.

Assistant U.S. Attorney Alana R. Black prosecuted the case.

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

ATLANTA - Rondell Muwwakkil has been sentenced to 14 years in prison for robbing five metro-Atlanta banks in 2016.  He passed notes to tellers at banks inside of stores demanding they give him small bills in each robbery. 

“Muwwakkil never cared about the terror he caused when robbing these banks,” said U.S. Attorney Byung J. “BJay” Pak. “Regardless of whether a robber uses a weapon or a simple note to rob a bank, it makes no difference.  As we continue to employ our Project Safe Neighborhood initiative, we will continue to prosecute anyone who drives violent crimes in the district.”

“The FBI would like to thank the public who helped us locate and arrest this suspect,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “As frightening as the five robberies were to the victims in the banks, there is little doubt there would have been more robberies, and more victims, had it not been for a concerned citizen’s tip.”

According to U.S. Attorney Pak, the charges and other information presented in court: Rondell Muwwakkil committed five bank robberies in August 2016. He committed each of the robberies by passing the bank teller a note demanding money. The robberies were scattered throughout the metro-Atlanta area.

On August 12, 2016, Muwwakkil took a taxi to the Best Bank located inside a Kroger in Decatur, Georgia, and then he went inside and robbed it. On August 17, 2016, He again took a different taxi to the same Best Bank inside of Kroger in Decatur, Georgia, then proceeded inside the store and robbed the bank.  On August 22, 2016, he robbed a Best Bank inside of a Kroger in Ellenwood, Georgia, and on August 27, 2016, he robbed the Woodforest National Bank inside a Walmart in Duluth, Georgia. Finally, on August 30, 2016, he robbed the Woodforest National Bank inside the Walmart in Newnan, Georgia.

In each robbery, Muwwakkil waited in line as if he were a regular customer. When he reached the teller, he passed them a note that told them to give him all loose bills in $100s, $50s, $20s, and $10s. Muwwakkil then took the money and fled the robbery scene.  Muwwakkil was identified as the robber by a tip called in to the FBI. His fingerprints were also found on the demand note given to the bank teller in the August 22 bank robbery.

Rondell Muwwakkil, 48, of Atlanta, Georgia, has been sentenced to 14 years in prison to be followed by three years of supervised release, and ordered to pay $7,961.00 in restitution.  Muwwakkil was convicted of the August 22 and 27, 2016 robberies on January 5, 2018, after he pleaded guilty to those robberies.

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

This case was investigated by the Federal Bureau of Investigation.

Assistant U.S. Attorney Mary L. Webb 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 – Joe L. Fletcher, a current inmate at the U.S. Penitentiary in Atlanta (USP Atlanta), has been indicted by a federal grand jury following a Facebook video posting that showed Fletcher in his prison cell talking on a contraband phone with family members and friends.  During the conversations, Fletcher bragged about his ability to possess a phone in prison, called himself “a motivational speaker for gangsters,” and also claimed responsibility for a 2010 murder in Ohio.

“This inmate was particularly proud of himself when he posted a lengthy interactive video on his Facebook page that showed him talking on a contraband phone from inside his prison cell,” said U.S. Attorney Byung J. “BJay” Pak.  “He made a further claim that he committed a murder in another state.  Prisoners with illegal phones and similar devices inside our prisons pose a serious problem that threatens the safety and security of employees and the public.  We are committed to helping the Bureau of Prisons eradicate dangerous contraband inside federal prisons in our district.”

“This defendant’s alleged braggadocio potentially will earn him more time in USP Atlanta, which he claims to enjoy,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “The FBI will continue to seek out those inmates and others who smuggle cell phones into a prison environment, because of the harm they cause and the continued criminal activity they afford inmates.”

According to U.S. Attorney Pak, the indictment, and other public information:  Joe L. Fletcher, who has convictions for drug trafficking and illegal possession of a firearm, arrived at USP Atlanta on January 5, 2018.  On January 27, 2018, he posted to his public Facebook page a 49-minute video recording of a phone conversation with family members and friends.  During the conversation, Fletcher bragged that he could possess a phone in any prison and that he was enjoying his time inside USP Atlanta. 

After calling himself “a motivational speaker for gangsters,” Fletcher then claimed credit for committing a murder in 2010 in Akron, Ohio.  The day after the Facebook posting, corrections officers searched Fletcher’s cell and found two concealed cell phones plugged into the ceiling light fixtures. 

Joe L. Fletcher, 30, of Akron, Ohio, is charged with illegally possessing a communication device inside a federal prison.  He was arraigned before U.S. Magistrate Judge Linda T. Walker.  Members of the public are reminded that the indictment only contains charges.  The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.

This case is being investigated by the FBI.

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

ATLANTA - William Charles Pelletier has been indicted by a federal grand jury charged with abusive sexual contact for sexually assaulting a female passenger on a Delta flight to Atlanta, Georgia.

“This defendant allegedly believed he could sexually assault a fellow passenger on a flight to Atlanta,” said U.S. Attorney Byung J. “BJay” Pak. “This conduct is unacceptable, and anyone who chooses to act in this manner will be prosecuted.  Citizens deserve to feel protected from sexual assault and should not have to fear this happening to them while traveling.”

“Behavior like what this defendant is accused of will not be tolerated by the FBI or any other law enforcement agency,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “No citizen should have to confront this type of behavior any time or anywhere. And no person should ever think they can get away with such alleged actions.”

According to U.S. Attorney Pak, the Indictment, and other information presented in court: on November 10, 2017, on a Delta flight from Charlottesville, Virginia, to Atlanta, several passengers reported that Pelletier was verbally abusive and unruly during the flight. As passengers were preparing for landing Pelletier threw a pretzel bag at the female passenger seated directly in front of him. The female passenger initially ignored Pelletier. But seconds later, she felt Pelletier reach around her seat and put his cupped hand on her breast. A passenger seated next to Pelletier witnessed the alleged assault and requested that the flight attendant contact the police. Pelletier was arrested when the flight arrived in Atlanta.

Arraignment for William Charles Pelletier, 35, of Andover, Maine, has not been determined.  Members of the public are reminded that the indictment only contains an allegation of criminal conduct. The defendant is presumed innocent of the charge and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.

This case is being investigated by the FBI and the Atlanta Police Department.

Assistant U.S. Attorney Phyllis Clerk is prosecuting the case.

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

ATLANTA - Jun Ying has been indicted on federal charges of insider trading relating to his sales of Equifax Inc. securities in advance of its announcement regarding a data breach. 

“This defendant took advantage of his position as Equifax’s USIS Chief Information Officer and allegedly sold over $950,000 worth of stock to profit before the company announced a data breach that impacted over 145 million Americans,” said U.S. Attorney Byung J. “BJay” Pak.  “Our office takes the abuse of trust inherent in insider trading very seriously and will prosecute those who seek to profit in this manner.”

“The alleged actions of this defendant undermine the public’s confidence in the nation’s stock markets,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “By prosecuting cases like this, the FBI and the U.S. Securities and Exchange Commission are sending a strong message to company insiders that they must follow the same rules that govern regular investors. Otherwise, they face the severe consequences for failing to do so.”

According to U.S. Attorney Pak, the charges, and other information presented in court: Equifax Inc. is a consumer credit reporting agency headquartered in Atlanta, Georgia.  During the summer of 2017, Equifax was the victim of a data breach, where hackers acquired names, Social Security numbers, birth dates, and addresses of over 145 million American citizens.  Jun Ying was the Chief Information Officer of Equifax U.S. Information Solutions in August 2017.  In that role, he became aware of information that resulted in him determining that Equifax had been the victim of that data breach before that information was made public. 

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

Jun Ying, 42, of Atlanta, Georgia, will arraigned later this week before U.S. Magistrate Judge Linda T. Walker on the charges.  Ying was indicted by a federal grand jury on March 13, 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 FBI.  The U.S. Securities and Exchange Commission made contributions to the case.

Assistant U.S. Attorneys Christopher J. Huber and 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 - Kerby Rigaud, who participated in an international business email compromise scheme, has pleaded guilty to conspiracy to commit wire and bank fraud and money laundering. 

“Business email compromise scams continue to inflict serious harm on our citizens and businesses,” said U.S. Attorney Byung J. “BJay” Pak. “We urge everyone to carefully scrutinize any emails they receive directing the transfer of money via wire.  We will continue to pursue justice for the victims of this pernicious financial threat.”

“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 Kenneth Cronin, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.  “The United States Secret Service and our law enforcement partners will continue to place a high priority on investigating cases that take advantage of unsuspecting victims.”

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 in an international business email compromise scam impacting victims across the U.S., including in the Northern District of Georgia.  In numerous instances, victims, including those identified in the indictment as T.W., A.P., and J.L., received emails that purported to be from trusted sources, including banking representatives and closing agents.  The emails directed the victims to wire money to specific bank accounts, some of which were opened in the metro-Atlanta area. 

Rigaud’s co-conspirators sent the emails, and in some instances, they hacked into victim’s email accounts. In others, they “spoofed” the email addresses; that is, the co-conspirators took steps to make the email appear as if it were sent by a trusted source, when in reality, it was sent from a different account by a malicious actor. 

Rigaud recruited numerous individuals who agreed to let 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.  Investigators believe that Rigaud and his co-conspirators attempted to steal over $1 million dollars during the timeframe of the conspiracy.

Sentencing for Kerby Rigaud, 27, of Duluth, Georgia, is scheduled for June 14, 2018 at 10:00 am at before U.S. District Judge Eleanor L. Ross.

This case is being investigated by the U.S. Secret Service.

Assistant U.S. Attorney Kamal Ghali 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 - Ronald L. Wheeler, III, a/k/a Trappy, has pleaded guilty to conspiracy to commit access device fraud for working as a public relations specialist for the Dark Web Marketplace AlphaBay.

“Wheeler spent hours on the Dark Web and general Internet providing AlphaBay users tips for attempting to avoid detection by law enforcement,” said U.S. Attorney Byung J. “BJay” Pak.  “His plea is the end of his nefarious career as an AlphaBay promoter.”      

“If people think the Dark Web gives them autonomy to operate illegally behind a cyber-curtain without the scrutiny of law enforcement, then Mr. Wheeler’s plea is a stark reminder that we won’t let that happen,” said David J. LeValley, Special Agent in Charge, FBI Atlanta. “We will not stop diligently prosecuting those who choose to disobey our laws and threaten our communities.” 

“In pleading guilty, Ronald Wheeler has become another example that you cannot hide behind the anonymity created by the Darkweb,” said Thomas J. Holloman, Special Agent in Charge, IRS Criminal Investigation. “IRS-CI, with its law enforcement partners, will continue to take every step in taking down those who create and facilitate Dark Web sites while attempting to hide their illegal profits by seeking payment in digital currencies such as Bitcoin.”  

According to U.S. Attorney Pak, the charges, and other information presented in court: Ronald L. Wheeler III a/k/a Trappy 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 (“TOR”) 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 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.  In return for his work, Wheeler received a salary in Bitcoin.  Throughout his participation in the conspiracy, Wheeler advised the public on how to access AlphaBay and encouraged the public to use the website.  Wheeler’s work with AlphaBay continued until early July 2017, when the FBI and its international law enforcement partners shut down the website. 

Sentencing for Ronald Wheeler, III, a/k/a Trappy, 24, of Streamwood, Illinois has been scheduled for May 24, 2018 at 2:00 p.m., before U.S. District Judge Leigh M. May.

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

Assistant U.S. Attorney Samir Kaushal is prosecuting the case.  Substantial assistance was provided by the U.S. Attorney’s Office for the Northern District of Illinois.

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. -- Federal and state agents have arrested 23 members and associates of the Ghostface Gangsters prison gang, which originated in the Cobb County, Georgia jail in 2000, and has since spread through Georgia jails, prisons, and beyond.  A federal grand jury returned a 21-count indictment on Feb. 8, 2018, which was recently unsealed.  The crimes alleged in the indictment range from wire fraud to murder.

“An attack on our law enforcement officers is an attack on all of us and can never be tolerated,” said Attorney General Sessions. “Law enforcement officers are the thin blue line standing between law abiding people and the violent gangs and criminals who peddle poison to our young people, terrorize our communities, and attempt to impose a false sovereignty over our neighborhoods. President Trump has ordered us to improve the safety of our law enforcement officers, and at the Department of Justice, we are carrying out that order. I want to thank everyone who helped make today’s arrests possible, including ATF and the FBI, as well as more than a dozen state and local law enforcement agencies across Georgia and Alabama. Today’s arrests will help us achieve justice for the officers who have sacrificed so much and to follow President Trump’s order to back the men and women in blue.”

“The Ghostface Gangsters gang is very violent and their members will not hesitate to shoot at anyone,” said U.S. Attorney Byung J. “BJay” Pak.  “Members have allegedly committed drug trafficking crimes inside and outside of prisons to make money, while committing violent crimes against each other, innocent citizens, and police officers.  We are partnering with local and state law enforcement agencies, including the Georgia Department of Corrections, to stop this criminal enterprise.  If convicted, the defendants will be removed to federal facilities all across the United States.”

“As a result of this operation, ATF has disrupted a dangerous and pervasive threat to the local community,” said ATF Acting Special Agent in Charge John Schmidt. “The Ghostface Gangsters gang flourished through recruitment, intimidation, and perpetration of heinous crimes, and it is critical that law enforcement agencies take aggressive actions against these criminals.  This investigation is an example of ATF remaining on the frontline of preventing violent crime through excellent cooperation with our law enforcement partners.”

“The recent federal indictments of this dangerous gang demonstrates how effective and important interagency collaboration is between federal, state, and local partners, and also demonstrates the commitment of law enforcement entities at every level to keep the communities across this nation as safe as possible,” said Chief Michael Register, Cobb County Police Department.

“As part of our commitment to ridding our prisons of criminal activity, we maintain a robust plan for identifying and managing those participating in gang activity,” said Corrections Commissioner Gregory C. Dozier.  “The use of contraband cell phones by these individuals as a tool to carry out their crimes, is a fight we continue to battle.  We appreciate the support and assistance of our law enforcement partners on every level, in our efforts to see that justice is being served on those who pose a threat to the safety of the public and the operations of our facilities.”

According to U.S. Attorney Pak, the charges, and other information presented in court:  Beginning in the year 2000, the defendants named in the Racketeering Influenced Corrupt Organization (RICO) conspiracy charge allegedly plotted to commit murders, kidnapping, firearm crimes, drug trafficking, assault, witness tampering, wire fraud and other crimes in furtherance of the Ghostface Gangsters criminal enterprise.  Other members and associates are charged in a drug conspiracy, and with separate counts of Violent Crimes in Aid of Racketeering, including carjacking, attempted murder, kidnapping, assault with serious bodily injury and maiming.

Ghostface Gangsters are organized into different positions of leadership, including the founding pillars, those having a “seat at the table,” “First Lady,” state-wide positions consisting of security, violator, structure board, education coordinator, living coordinator, communications coordinator, investigator, enforcement coordinator, recruiter, planning and strategy, treasurer, legal coordinator, meeting coordinator and event coordinator. 

Members within the prisons used contraband cell phones to continue their drug sales both within and outside the prison, and used the phones to communicate regularly with other gang members one-on-one and even conducted video conferences with multiple members about decisions to be made by the gang. 

Since the early 2000’s, Ghostface Gangsters and their associates have trafficked methamphetamine, marijuana and illegal pills, both inside and outside prisons throughout Georgia. Some of the defendants in this case have committed multiple violent acts to include:

On July 5, 2016, defendant Victor Manuel Dejesus allegedly violently carjacked a citizen using a firearm and threatened to kill her.  He took the car, then picked up defendant Christopher Marlow, and together they fled from a Cobb County Deputy Sheriff. Dejesus shot at the deputy from inside the car and later threw the gun out the window.  The gun was later turned over to police after a citizen found it lying on the side of the road.

• On December 2, 2016, defendant Cody Ryan Todd, upon receiving an order from defendant David Gene Powell, allegedly joined other GFG members to kidnap one of their own members for violating gang rules. Todd and the other members of the GFG beat the victim badly, including trying to pull out his teeth with pliers.  They videotaped the incident, which showed the victim lying down and pleading for help because he could not breathe.
   
• In December of 2016, defendants Christopher Jarman Davis and Jonathan Stubbs, under the orders of defendant Jeffrey Alan Bourassa, allegedly kidnapped another GFG member, held him at gunpoint and cut off his tattoo with a knife.
   
• On March 8, 2017, defendant William J. Goodman allegedly stabbed another GFG member in the neck and back for violating gang rules, causing severe blood loss, serious bodily injury, and a collapsed lung.
   
• On October 29, 2016, defendant Richard B. Sosebee shot a man in the eye during a drug deal, causing him to lose his eye.
   
• On December 11, 2017, defendant Kevin Scott Sosebee was a passenger in a car pulled over in a traffic stop.  The Cobb County Police officer who pulled the car over was alone.  Before the officer could exit his car, Sosebee allegedly shot at him several times and then fled from the officer.
   

The RICO conspiracy charge names the following defendants:

• Jeffrey Alan Bourassa, a/k/a “J.B.,” “Babyface,” and “Kid,” 35, of Cobb County, Georgia, is a founding pillar of GFG.  Bourassa is also charged with aiding and abetting another person by kidnapping and maiming a fellow GFG member;
• Kevin Scott Sosebee, a/k/a “Sosa,” 27, of Cobb County, Georgia, is also charged with the attempted murder of a Cobb County Police Officer;
• David Gene Powell, a/k/a “Davo,” of Cobb County, Georgia, 40, is a founding pillar of GFG.  He is also charged with aiding and abetting another person by kidnapping and assaulting a fellow GFG member;
• Victor Manuel Dejesus, a/k/a “VG Vic,” 36, of Gwinnett County, Georgia.  Dejesus is also charged with carjacking, attempted murder of a Cobb County deputy sheriff, and using a firearm during a crime of violence;
• Richard Brian Sosebee, a/k/a “Dirty,” 42, of Hall County, Georgia, is also charged with attempted murder and other firearms charges;
• Jonathan Stubbs, 29, of Hamilton County, Tennessee, is also charged with aiding and abetting one other by kidnapping and maiming a fellow GFG member;
• Cody Ryan Todd, 28, of Carroll County, Georgia.  He is also charged with aiding and abetting another person by kidnapping and assaulting a fellow GFG member;
• Toby James Ogletree, 42, of Spalding County, Georgia;
• Cheri Lea Rau, 59, of Cobb County, Georgia.

 

The following defendants are also named in the drug conspiracy:

• Joseph M. Propps, a/k/a “JP,” 39, of Cobb County, Georgia;
• Marc Avon Lefevre, Jr,  a/k/a “Ghost,” 32, of Cobb County, Georgia;
• Christopher Lasher, a/k/a/ “Retta,” 35, of Marietta, Georgia;
• Genevieve Waits, 35, of Cleveland, Ohio;
• Christopher Steven Jones, a/k/a “Red,” 34, of Cherokee County, Georgia;
• Samantha Miller, 26, of Cobb County, Georgia;
• Hailey Danielle Sizemore, 27, of Douglas County, Georgia;
• Kayli Brewer, 26, of Cobb County, Georgia;
• Brittany Nicole Jones, 30, of Rockdale County, Georgia;
• David Gene Powell, a/k/a “Davo;”
• Jeffrey Alan Bourassa, a/k/a “J.B.,” “Babyface;”
• Cheri Lea Rau; and
• Toby James Ogletree.
   

Additional defendants and their charges are as follows:

• Christopher Marlow a/k/a “Loko,” 28, of Cobb County, Georgia, is charged with attempted murder of the Cobb County deputy sheriff and firearm charge.
• Christopher Jarman Davis, 27, of Walker County, Georgia, along with Jonathan Stubbs and Jeffrey Bourassa, is charged with aiding and abetting one other by kidnapping and maiming a fellow GFG member.
• William J. Goodman, aka “JBeenlivin’good” and “JGood,” 24, of Paulding County, Georgia, is charged with attempted murder of a fellow GFG member.
• Kelly Ray Shiflett, 30, of Floyd County, Georgia, is charged with being a convicted felon in possession of a firearm; and
• Randall Arthur Lee Chumley, 36, of Pickens County, Georgia, is charged with being a convicted felon in possession of a firearm, and other drug and firearm charges.

 
Several defendants in the indictment were arraigned before U.S. Magistrate Judge Walter E. Johnson.  Twenty gang members were already in custody on state or local charges and will be arraigned in the next few days.  Members of the public are reminded that the indictment only contains charges, and that the defendants are presumed innocent of the charges.  It will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
 
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Cobb County Police Department with the assistance of the Georgia Department of Corrections and the following agencies:  Marietta Cobb Smyrna/Cobb Anti-Gang Enforcement (CAGE), Cobb County Sheriff’s Office, Marietta Police Department, Cobb District Attorney’s Office, Criminal Investigations Division and Criminal Intelligence Unit of the Georgia Department of Corrections, Cherokee County Sheriff’s Office, Ball Ground Police Department, Cherokee County District Attorney’s Office/Blue Ridge Judicial Circuit, Douglas County Sheriff’s Office, Douglasville Police Department, Douglas County District Attorney’s Office, FBI, Floyd County Sheriff’s Office, Floyd County Police Department, Rome/Floyd Metro Task Force, Floyd County District Attorney’s Office, Carrollton Police Department, Carroll County District Attorney’s Office/Coweta Judicial Circuit, Gainesville Police Department, Hall County District Attorney’s Office, Pickens County Sheriff’s Office, Pickens County District Attorney’s Office/Appalachian Judicial Circuit, Jefferson County, Alabama Sheriff’s Office, Metro Area Crime Center,  Jefferson County, Alabama District Attorney’s Office/Alabama Tenth Judicial Circuit, Georgia Department of Community Supervision,  Walton County Sheriff’s Office, Newton County Sheriff’s Office, Covington Police Department,  Walton/Newton County District Attorney’s Office/Alcovy Judicial Circuit, Drug Enforcement Administration – Chattanooga Field Office, Murray County Sheriff’s Office, and the Catoosa County Sheriff’s Office. 

This case is being prosecuted by Assistant U.S. Attorney Katherine M. Hoffer and Trial Attorney John Hanley of the Department of Justice 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.

Federal and state agents arrested 23 leaders, members and associates of the Ghostface Gangsters prison gang pursuant to a 21-count indictment returned on Feb. 8 and unsealed today.  The crimes alleged in the indictment include conspiracy to commit racketeering, conspiracy to commit drug trafficking, carjacking, four counts of attempted murder, kidnapping, maiming, assault, possession with intent to distribute methamphetamine, and firearms offenses.

Attorney General Jeff Sessions; U.S. Attorney Byung J. “BJay” Pak for the Northern District of Georgia; Assistant Special Agent in Charge John Schmidt of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Chief Michael J. Register of the Cobb County Police Department and Commissioner Gregory C. Dozier of the Georgia Department of Corrections made the announcement.

“An attack on our law enforcement officers is an attack on all of us and can never be tolerated,” said Attorney General Sessions. “Law enforcement officers are the thin blue line standing between law abiding people and the violent gangs and criminals who peddle poison to our young people, terrorize our communities, and attempt to impose a false sovereignty over our neighborhoods.  President Trump has ordered us to improve the safety of our law enforcement officers, and at the Department of Justice, we are carrying out that order. I want to thank everyone who helped make today’s arrests possible, including ATF and the FBI, as well as more than a dozen state and local law enforcement agencies across Georgia and Alabama.  Today’s arrests will help us achieve justice for the officers who have sacrificed so much and to follow President Trump’s order to back the men and women in blue.”

“The Ghostface Gangsters gang is very violent and their members will not hesitate to shoot at anyone,” said U.S. Attorney Pak.   “Members have allegedly committed drug trafficking crimes inside and outside of prisons to make money, while committing violent crimes against each other, innocent citizens, and police officers.  We are partnering with local and state law enforcement agencies, including the Georgia Department of Corrections, to stop this criminal enterprise.  If convicted, the defendants will be removed to federal facilities all across the United States.”

“As a result of this operation, ATF has eliminated a dangerous and pervasive threat to the local community,” said Assistant Special Agent in Charge Schmidt.  “The Ghostface Gangsters gang flourished through recruitment, intimidation and perpetration of heinous crimes, and it is critical that law enforcement agencies take aggressive actions against these criminals.  This investigation is an example of ATF remaining on the frontline of preventing violent crime through excellent cooperation with our law enforcement partners.”

“The recent federal indictments of this dangerous gang demonstrates how effective and important interagency collaboration is between federal, state, and local partners, and also demonstrates the commitment of law enforcement entities at every level to keep the communities across this nation as safe as possible,” said Chief Register.

“As part of our commitment to ridding our prisons of criminal activity, we maintain a robust plan for identifying and managing those participating in gang activity,” said Corrections Commissioner Dozier.  “The use of contraband cell phones by these individuals as a tool to carry out their crimes, is a fight we continue to battle.  We appreciate the support and assistance of our law enforcement partners on every level, in our efforts to see that justice is being served on those who pose a threat to the safety of the public and the operations of our facilities.”

According to the indictment, the Ghostface Gangsters is a whites-only prison gang formed in the year 2000 in the Cobb County, Georgia jail system.  The gang has since expanded outside the prison system, and its membership is now estimated to include thousands of members throughout Georgia.  The gang is highly organized into different positions of leadership, including, for example, the founding “Pillars” of the gang, those having a “seat at the table,” “First Lady” and numerous state-wide positions of governance.  Members follow written gang literature, use violence to enforce gang rules, and facilitated the gang’s criminal activities from within prisons using contraband cell phones.   

Nine Ghostface Gangsters are charged with conspiracy to commit racketeering in furtherance of the gang’s criminal enterprise, including two of the gang’s founding “Pillars.”  According to the indictment, these gang members murdered two correctional officers and a Polk County detective and also committed multiple attempted murders, kidnapping, firearm crimes, drug trafficking, assaults, witness tampering, wire fraud and other crimes in furtherance of the gang’s activities.  The Racketeer Influenced and Corrupt Organization Act conspiracy charge names the following defendants:

• Jeffrey Alan Bourassa, aka J.B., Babyface and Kid, 35, of Cobb County, Georgia.  Bourassa is alleged to be a founding Pillar of the Ghostface Gangsters.  He is also charged with aiding and abetting another person by kidnapping and maiming a fellow Ghostface Gangsters member;
• David Gene Powell, aka Davo, 40, of Cobb County, Georgia.  Powell is alleged to be a founding Pillar of the Ghostface Gangsters.  He is also charged with aiding and abetting another person by kidnapping and assaulting a fellow Ghostface Gangsters member;
• Victor Manuel Dejesus, aka VG Vic, 36, of Gwinnett County, Georgia.  Dejesus is also charged with carjacking, attempted murder of a Cobb County deputy sheriff, and using a firearm during a crime of violence;
• Richard Brian Sosebee, aka Dirty, 42, of Hall County, Georgia.  Sosebee is also charged with attempted murder and other firearms charges;
• Jonathan Stubbs, 29, of Hamilton County, Tennessee.  Stubbs is also charged with aiding and abetting another by kidnapping and maiming a fellow Ghostface Gangsters member;
• Cody Ryan Todd, 28, of Carroll County, Georgia.  Todd is also charged with aiding and abetting another person by kidnapping and assaulting a fellow Ghostface Gangsters member;
• Kevin Scott Sosebee, aka Sosa, 27, of Cobb County, Georgia, is also charged with the attempted murder of a Cobb County Police Officer;
• Toby James Ogletree, 42, of Spalding County, Georgia; and
• Cheri Lea Rau, 59, of Cobb County, Georgia.

Thirteen Ghostface Gangsters members and associates—including three founding “Pillars” and four female gang leaders who held the position of “First Lady”—are charged in a drug conspiracy involving distribution and possession with intent to distribute methamphetamine, cocaine, marijuana and illegal pills.  The following defendants are named in the drug conspiracy:

• Joseph M. Propps Jr., aka P, 39, of Cobb County, Georgia;
• Marc Avon Lefevre, aka Ghost, 32, of Cobb County, Georgia;
• Christopher Lasher, aka Retta, 35, of Marietta, Georgia;
• Genevieve Waits, 35, of Cleveland, Ohio;
• Christopher Steven Jones, aka Red, 34, of Cherokee County, Georgia;
• Samantha Miller, 26, of Cobb County, Georgia;
• Hailey Danielle Sizemore, 27, of Douglas County, Georgia;
• Kayli Brewer, 26, of Cobb County, Georgia;
• Brittany Nicole Jones, 30, of Rockdale County, Georgia;
• Powell;
• Bourassa;
• Rau; and
• Ogletree.

Other gang members are charged with separate counts of violent crimes in aid of racketeering, including carjacking; four attempted murders, including the attempted murders of a Deputy Sheriff and a Cobb County police officer; kidnapping; assault with serious bodily injury; and maiming. Specifically, the indictment alleges:

• On July 5, 2016, Dejesus violently carjacked a citizen using a firearm and threatened to kill her.  He took the car, then picked up defendant Christopher Marlow, aka Loko, 28, of Cobb County, Georgia, and together they fled from a Cobb County Deputy Sheriff.  Dejesus shot at the deputy from inside the car and later threw the gun out the window;
• On Oct. 29, 2016, Richard Brian Sosebee shot a victim in the eye during a drug deal, causing the victim serious bodily injury;
• On Dec. 2, 2016, Todd, upon receiving an order from Powell, joined other Ghostface Gangster members to kidnap one of their own members for violating gang rules. Todd and the other members of the Ghostface Gangsters beat the victim badly and tried to pull out his teeth with pliers;
• In December 2016, Stubbs and Christopher Jarman Davis, 27, of Walker County, Georgia, under the orders of Bourassa, allegedly kidnapped another Ghostface Gangsters member, held the victim at gunpoint and cut off his tattoo with a knife, causing serious bodily harm;
• On March 8, 2017, William J. Goodman, aka JBeenlivin’good and JGood, 24, of Paulding County, Georgia, stabbed another Ghostface Gangsters member in the neck and back for violating gang rules, causing serious bodily injury;
• In December 2017, Kevin Scott Sosebee shot at a Cobb County police officer who pulled over a car in which Sosebee was a passenger.

In addition, Kelly Ray Shiflett, 30, of Floyd County, Georgia, is charged with being a convicted felon in possession of a firearm, and Randall Arthur Lee Chumley, 36, of Pickens County, Georgia, is charged with being a convicted felon in possession of a firearm and other drug and firearm charges.

Twenty-two indicted gang members are already in custody on state or local charges and will be arraigned in federal court in the next few days before U.S. Magistrate Judge Walter E. Johnson. 

An indictment merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.

This case is being investigated by the ATF; the Cobb County Police Department with the assistance of the FBI; the Georgia Department of Corrections; and the following federal, state and local agencies:  Marietta Cobb Smyrna/Cobb Anti-Gang Enforcement (CAGE), Cobb County Sheriff’s Office, Marietta Police Department, Cobb District Attorney’s Office, Criminal Investigations Division and Criminal Intelligence Unit of the Georgia Department of Corrections, Cherokee County Sheriff’s Office, Ball Ground Police Department, Cherokee County District Attorney’s Office/Blue Ridge Judicial Circuit, Douglas County Sheriff’s Office, Douglasville Police Department, Douglas County District Attorney’s Office, Floyd County Sheriff’s Office, Floyd County Police Department, Rome/Floyd Metro Task Force, Floyd County District Attorney’s Office, Carrollton Police Department, Carroll County District Attorney’s Office/Coweta Judicial Circuit, Gainesville Police Department, Hall County District Attorney’s Office, Pickens County Sheriff’s Office, Pickens County District Attorney’s Office/Appalachian Judicial Circuit, Jefferson County, Alabama Sheriff’s Office, Metro Area Crime Center,  Jefferson County, Alabama District Attorney’s Office/Alabama Tenth Judicial Circuit, Georgia Department of Community Supervision,  Walton County Sheriff’s Office, Newton County Sheriff’s Office, Covington Police Department, Walton/Newton County District Attorney’s Office/Alcovy Judicial Circuit, Drug Enforcement Administration – Chattanooga Field Office, Murray County Sheriff’s Office and the Catoosa County Sheriff’s Office. 

This case is being prosecuted by Trial Attorney John Hanley of the Justice Department’s Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Katherine M. Hoffer and Jolee Porter.

ATLANTA - Kesia Quinette Jackson has been sentenced for her role as an organizer in an armed robbery spree that spanned five counties, and target seven Wal-Mart Stores. 

“Jackson led a robbery crew that terrorized business employees, shoppers, and citizens during a crime spree,” said U.S. Attorney Byung J. “BJay” Pak.  “Jackson and her crew calculated their robberies and helped drive violence and fear in multiple counties.  The defendant’s conviction and lengthy sentence resulted from the collaboration of multiple federal and local law enforcement agencies determined to apprehend and aggressively prosecute every member of this robbery crew.”

"For nearly two years Jackson led a robbing crew that rained terror on innocent victims, who just by chance, were in the wrong place at the wrong time,” said David J. LeValley, Special Agent in Charge, FBI Atlanta. “The FBI, working together with several local law enforcement agencies and the US Attorney’s Office have put an end to their reign of terror so that the victims can take solace in the fact they won’t be able to traumatize any more innocent people.”

According to U.S. Attorney Pak, the charges and other information presented in court:  Between February 3, 2014, and October 26, 2015, Kesia Quinette Jackson, along with others committed 11 armed robberies throughout the metro-Atlanta area.  Jackson was the organizer of the robberies.  Seven of the robberies targeted Wal-Mart Stores.

Jackson and her co-defendants researched store locations in DeKalb, Gwinnett, Cobb, Clayton and Forsyth Counties, and then surveilled the businesses before and during the robberies, usually between 10:00 pm and midnight. Jackson was captured on surveillance video prior to the robberies while she talked on her cell phone and cased the locations. During each robbery, co-defendant Deanthony Foster was also captured on video surveillance entering the stores wearing a surgical mask, brandishing a firearm, and proceeded to force store employees to empty their cash registers. During the final robbery, Foster fired a shot near store employees when they failed to immediately give him cash.  

In addition to the Wal-Mart store robberies, Jackson also targeted gas stations and convenience stores.  On February 3, 2014, Jackson and her crew robbed a gas station in Gwinnett County. Jackson was inside the business casing the establishment immediately prior to the armed robbery. Within 24 hours after the robbery, proceeds from the robbery were deposited into Jackson’s personal bank account. On June 2, 2014, Jackson and her crew robbed another gas station in DeKalb County, during which a co-defendant shot an employee in the leg. Like the other robberies, Jackson entered the business and cased the business immediately before the robbery.

Jackson’s sentence also involves conduct related to her role in three gas station armed robberies, one on August 27, 2015, one on September 21, 2015, and the third on October 26, 2015, in Cobb and DeKalb counties. During one of the robberies a co-defendant shot a victim employee.   

Kesia Quinette Jackson, 46, of Atlanta, Georgia, has been sentenced to 21 years, three months in prison to be followed by five years of supervised release, and ordered to pay restitution in the amount of $62,315.95.  Jackson pleaded guilty on November 10, 2016.

Co-defendants Deanthony Foster and Eric Lamar Ross were previously sentenced for their respective roles in the robberies.  Foster, a gunman, received a sentence of 32 years in prison. Ross, who acted as a lookout during two of the robberies, received a sentence of five years in prison.

This case was investigated by the FBI, with assistance from the following law enforcement agencies: Cobb County Police Department, DeKalb County Police Department, Gwinnett County Police Department, Hapeville Police Department, Roswell Police Department, Riverdale Police Department, Dunwoody Police Department, and the Forsyth County Sherriff’s Office.

Assistant U.S. Attorneys Katherine M. Hoffer and Jessica C. Morris prosecuted the case.

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

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

A former employee of a U.S. government contractor in Afghanistan pleaded guilty today to accepting illegal kickbacks from an Afghan subcontractor in return for his assistance in obtaining subcontracts on U.S. government contracts.

Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; U.S. Attorney Byung J. Pak of the Northern District of Georgia; Special Agent in Charge John Khin of the Defense Criminal Investigative Service’s (DCIS) Southeast Field Office, Atlanta Resident Agency; Special Inspector General for Afghanistan Reconstruction (SIGAR) John F. Sopko; Director Frank Robey of the U.S. Army Criminal Investigation Command’s (CID) Major Procurement Fraud Unit (MPFU); Special Agent in Charge David J. LeValley of the FBI Atlanta Resident Agency and Special Agent in Charge Wendell W. Palmer of Air Force Office of Special Investigations (OSI), made the announcement.

Christopher McCray, 55, of Jonesboro, Georgia and Chattanooga, Tennessee, pleaded guilty to one count of accepting illegal kickbacks before U.S. District Judge Mark H. Cohen of the Northern District of Georgia.  He is scheduled to be sentenced by Judge Cohen on June 14 at 10:00 a.m. EST.  McCray was charged in an indictment filed on April 25, 2017 in the Northern District of Georgia with one count of conspiracy to accept kickbacks and 14 counts of accepting illegal kickbacks. 

As part of his plea, McCray admitted that he was employed as the country manager for a subcontractor of an American company that was moving cargo for the Army and Air Force Exchange Service from Bagram Airfield to military bases through Afghanistan.  When the prime contractor needed McCray’s employer to take a much bigger role in the distribution, McCray had the chance to influence the choice of the necessary Afghan trucking company as a subcontractor to his employer.  McCray’s employer entered into a subcontract with an Afghan company but before the choice of the subcontractor was made, the Afghan trucking company secretly agreed to kick back to McCray 15 percent of the revenues it would receive on the contract, he admitted.  McCray thereafter remained as the only representative of his employer in Afghanistan for the duration of the subcontract and was responsible for checking the accuracy of the invoices submitted to McCray’s employer and the quality of the Afghan company’s work, all while secretly receiving the kickbacks, he admitted.

McCray received the secret payments from December 2012 to May 2014.  He and the Afghan trucking company also maintained a separate set of invoices, which showed the amounts charged to McCray’s employer and the amounts kept by the Afghan company and the amounts sent to McCray.  McCray was first paid in cash, then by wires sent to his bank in Atlanta and then by Western Union payments sent to his mother, who would deposit the funds, mostly in cash, into McCray’s bank accounts, he admitted. 

DCIS, SIGAR, Army CID-MPFU, the FBI and Air Force OSI investigated this matter.  Trial Attorney James Gelber of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Brian Pearce of the Northern District of Georgia are prosecuting the case.

ROME, Ga. – Former Cartersville police officer Bryson-Taylor Wayne Banks, who notified drug traffickers that the FBI was conducting a court-authorized wiretap, has pleaded guilty to a felony charge of Unlawful Notification of Electronic Surveillance.

“The defendant made a decision to side with the drug dealers and sabotage an FBI investigation,” said U.S. Attorney Byung J. “BJay” Pak.  “He placed his fellow law enforcement officers in imminent danger, and sold out his oath to uphold the law.”

“It is disheartening to learn that one of our own decided to take the side of law breakers, putting fellow officers and agents in danger while violating the trust of law abiding citizens in his community,” said David J. LeValley, Special Agent in Charge, FBI Atlanta. “It is only fitting that Banks will now have time to reflect on his decision, as he more than likely will spend time in prison, alongside the drug dealers he chose to side with.”

“Mr. Banks actions do not reflect the values or culture of the Cartersville Police Department,” said Lieutenant Michael Bettikofer, Cartersville Police Department.

According to U.S. Attorney Pak, the charges and other information presented in court: In 2015, Banks, then an officer with the Cartersville Police Department and member of the Bartow-Cartersville Drug Task Force, was investigating a number of drug traffickers operating in the Cartersville area, including Tomas Pineda Mendoza, using a female confidential source (“CS”) to obtain information about the network.  In cultivating his relationship with the CS, Banks improperly gave her information from law enforcement databases and illegally sent her a picture of another cooperating source.

Separately, the FBI was investigating an inmate in a Georgia state prison, Francisco Palacios Baras, also known as “Shorty,” who was using contraband cell phones to coordinate methamphetamine transactions outside of the prison.  Using a court-authorized wiretap on two of Shorty’s cell phones, the FBI learned that Mendoza was one of Shorty’s associates, and that Mendoza was scheduled to pick up two kilograms of methamphetamine.  The FBI planned to arrest Mendoza after he picked up those drugs.  

The morning of the planned arrest, in the interest of sharing information and coordinating operations with fellow law enforcement agencies, an FBI agent informed Banks of the wiretap investigation and the plan to arrest Mendoza.  Banks, knowing that the drug trafficker he had been investigating was about to be arrested by a different agency, contacted his CS and instructed her to tell Mendoza to not pick up drugs that day because the FBI planned to arrest him.  Banks also told the CS that the FBI knew about Mendoza because they were wiretapping Shorty’s phones. 

Mendoza did not pick up the methamphetamine as planned, but was intercepted over the wiretap calling Shorty and telling him that “one of the girls” had warned Mendoza not to pick up the drugs.  He said that he had identified the agents watching his apartment, as “the girl” had warned, and that law enforcement was listening to Shorty’s phones.  Following this, Shorty stopped using the phones being wiretapped by the FBI. 

With the arrest plan compromised, the surveillance team identified, and the wiretap exposed, the FBI agents had to take precautions for agents’ personal safety and try to rebuild the investigation.  However, the renewed investigation was ultimately successful, resulting in Shorty and Mendoza being arrested and sentenced to 9 years, seven months, and 10 years, 10 months imprisonment, respectively, for conspiracy to distribute methamphetamine.

Sentencing for Bryson-Taylor Wayne Banks, 31, of Cartersville, Georgia, is scheduled for May 11, 2018, before U.S. District Judge Harold Murphy.

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

Assistant U.S. Attorneys Michael Herskowitz and Garrett Bradford 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 – Dr. Joseph L. Burton, a former county medical examiner and forensic pathologist, has been indicted along with seven other individuals by a federal grand jury on charges of illegal distribution of opioid painkillers and other drugs as part of Operation SCOPE (Strategically Combatting Opioids through Prosecution and Enforcement).  Multiple individuals have also been arrested on charges related to the unlawful distribution of opioids prescribed by Burton.      

“Burton traded away his responsibility as a licensed doctor and respected pathologist by allegedly writing unnecessary prescriptions in exchange for sex and romantic companionship,” said U.S. Attorney Byung J. “BJay” Pak.  “His associates sought to profit by having those prescriptions filled, and then selling those drugs which included opioid painkillers like oxycodone.  The DEA and local law enforcement have halted this unlawful distribution of opioids into our community, and we are committed to prosecuting those who sought to profit.” 

“When powerful and addictive opioids are illegally prescribed or distributed, they can become weapons of mass destruction,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. Many of these dangerous substances are the catalyst behind the current opiate crises that this country is now experiencing. DEA, its many law enforcement partners and the U.S. Attorney’s office are firmly committed to extricating such criminals like Dr. Burton from perpetuating the vicious cycle of opioid addiction.”

According to U.S. Attorney Pak, the indictment, and other information presented in court: Joseph Burton, a licensed physician, operated as a consulting pathologist, meaning that he determined the medical causes of diseases and death.  Federal agents began investigating him after the Georgia Drug & Narcotics Agency visited Burton in early 2017 and discovered that he was prescribing painkillers to a large number of patients despite not operating a medical clinic or regularly seeing patients.  Over a roughly two-year period beginning in July 2015, Dr. Burton allegedly issued over 1,100 opioid prescriptions, which amounted to over 108,000 individuals doses, including over 66,000 30mg oxycodone pills.  The indictment alleges that Burton prescribed opioids such as oxycodone, hydrocodone, and methadone, irrespective of any legitimate medical purpose and outside the normal course of professional practice, in exchange for sexual favors and romantic affection. 

For example, Burton prescribed opioids to individuals without thoroughly examining them, and on occasion, without ever meeting them at all.  Codefendants Jennifer Hunter, Rhonda Haugland, and Tiffany Willis each engaged in a romantic relationship with Burton in exchange for prescriptions in their names as well as the names of others.  As part of the conspiracy, Hunter, Haugland, and Willis 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.        

Burton and the seven other individuals are charged in the federal indictment with conspiring to distribute and dispense controlled substances—outside of the normal course of professional practice and without a legitimate medical purpose—from July 2015 to February 2018.  Burton is also charged with ten individual counts of illegal drug distribution for specific prescriptions.  Six of Burton’s alleged conspirators were also charged in several of these counts.  Burton was previously arrested on October 11, 2017, on a federal criminal complaint and indicted on a narrower set of charges. 

The following individuals are charged in this superseding indictment: 

• Joseph Lawson Burton, 76, of Milton, Georgia,
• Jennifer Hunter, 29, of Acworth, Georgia,
• Tiffany Willis, 26, of Cartersville, Georgia,
• Rhonda Haugland, 59, of Flowery Branch, Georgia,
• Michelle Danner, 45, of Acworth, Georgia,
• Cheryl Truelove, 50, of Hiram, Georgia,
• Jerry Stephens, Jr., 29, of Cartersville, Georgia, and

Rodney Kennedy, 63, of Cartersville, Georgia.
 
Members of the public are reminded that the indictment only contains charges.  The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
 
This case is being investigated by the 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 are prosecuting the case.

The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.  Citizens can also contact the Georgia Crisis and Access Line at 1-800-715-4225.

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 – Nadir Anwar Jabbar and Scarlett Capri King have been sentenced to federal prison for conspiring to defraud various car dealerships and car loan financing institutions by using stolen identities to purchase luxury vehicles. 

“The five victims in this case never knew their personal information had been compromised, nor did they know of the potential damage to their credit,” said U.S. Attorney Byung J. “BJay” Pak.  “Jabber and King sought over a million dollars in riches on the backs, and credit, of the victims.  They thought, as all thieves do, that they would get away undetected.  Fortunately, they were discovered and will now serve time in a federal prison.  As criminals get more creative, encourage every citizen to regularly check their credit and closely monitor their accounts for any suspicious activity.” 

“Through no fault of their own, five unknowing victims personal lives have been disrupted for years as they try to recover their identities and financial security,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “That is why the FBI and the U.S. Attorney’s Office are determined to prosecute suspects like Jabbar and King, and any others who will try steal the identities of innocent persons.”

According to U.S. Attorney Pak, the charges and other information presented in court:  From October 2013 to May 2014, Jabbar and King ran a scheme to defraud car dealerships and car loan financing institutions by using stolen identities to purchase luxury vehicles. The defendants targeted out-of-state dealerships and carried out their scheme without visiting dealerships by using the Internet, e-mail, phone and mail to submit fraudulent information.

They directed car dealerships to mail paperwork to various addresses in Georgia and Florida and provided forged documents to support the loan applications. The defendants also arranged for the delivery of the vehicles to various addresses in metro Atlanta. Jabbar used a network of runners to pick up the stolen vehicles. King fraudulently notarized documents to support the fraudulent loan applications and assisted with picking up vehicles. In total, 14 cars were purchased using stolen identities, with a total loss of approximately $1.1 million dollars.

Nadir Anwar Jabbar, 44, of Ellenwood, Georgia, has been sentenced to seven years in prison, three years of supervised release, and ordered to pay $209,734.13 in restitution.  Jabbar was convicted on November 8, 2017, after he pleaded guilty.

Scarlett Capri King, 40, Stone Mountain, Georgia, has been sentenced to two years, seven months in prison, one year of supervised release, and ordered to pay restitution in the amount of $6,000.  King was convicted on November 8, 2017, after she pleaded guilty.

This case was investigated by the FBI.

Assistant U.S. Attorney Bernita B. Malloy and Special Assistant U.S. Attorney Diane 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 – U.S. Penitentiary inmate Deldrick D. Jackson has been sentenced to an additional one year, six months in federal prison for running an inmate taxi service and a contraband smuggling operation and with his fiancée Kelly Bass. 

“Inmates who escape from prison threaten the safety of our communities and undermine our criminal justice system,” said U.S. Attorney Byung J. “BJay” Pak.  “In this case, Jackson not only escaped from prison, but shockingly ran a contraband smuggling scheme and a for-profit taxi service for escaped inmates.  To those inmates tempted to escape, when you are caught, the consequences will be severe.”

“Not only did Jackson escape from custody and smuggle contraband into a federal prison, but he and his fiancée facilitated the escape of other prisoners while profiting from it,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “This kind of audacity cannot be tolerated and this additional sentence should send a message to anyone inclined to attempt an escape.”

“Prison is where criminals go to be punished, not a place to take joyrides and commit even more crimes,” said Atlanta Police Chief Erika Shields. “I’m proud that our team worked closely with the FBI and the U.S. Attorney’s Office to ensure this activity was put to a stop.”

According to U.S. Attorney Pak, the charges, and other information presented in court: the U.S. Penitentiary in Atlanta, Georgia, (“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. 

In May 2013, Jackson was convicted in federal court of conspiring to distribute cocaine and conspiring to launder money.  From July 2016 to April 2017, Jackson was assigned to USP Atlanta. Prison visitation records showed that Bass is Jackson’s fiancée. 

From approximately November 2016 to April 2017, Jackson and Bass provided escaped inmates with transportation from USP Atlanta to nearby restaurants, hotels, or residences. For example, on January 28, 2017, Bass picked up Jackson and other escaped inmates from outside USP Atlanta, drove them to a nearby hotel, and hours later, returned Jackson and the other inmates to USP Atlanta. During the course of the conspiracy, Jackson and Bass also smuggled contraband into USP Atlanta to be sold to other prison inmate.

Finally, on April 13, 2017, Bass drove Jackson from USP Atlanta to a local fast food restaurant. Shortly thereafter, law enforcement officers stopped Bass’s vehicle and arrested Bass and Jackson.  Upon searching the SUV, officers recovered two cell phones, 83 packs of cigarettes, and eight bottles of whiskey. In total, Jackson and Bass provided escaped inmates with transportation from USP Atlanta and/or smuggled contraband into the prison on approximately 15 occasions.  Jackson and Bass received approximately $4,000 from the escaped inmates or their families in exchange for rides and from the purchase of contraband.

Deldrick D. Jackson, 41, of DeKalb County, Georgia, was sentenced to an additional one year and six months in prison – to be served after he completes his current ten years, eight month sentence for conspiring to distribute cocaine and conspiring to launder money.  On May 16 and November 14, 2017, Jackson pleaded guilty to conspiracy to escape from custody and to escape from custody, respectively.  He was indicted on April 25, 2017, on conspiratorial and substantive escape charges. 

On September 13, 2017, Kelly M. Bass, 38, of DeKalb County, Georgia, was sentenced to six months in prison followed by eight months of home confinement.  Bass pleaded guilty to conspiratorial and substantive escape charges on June 5, 2017.  She was also indicted on April 25, 2017, on conspiratorial and substantive escape charges.

The FBI and Atlanta Police Department investigated this case.

Assistant U.S. Attorneys Jeffrey W. Davis and Timothy H. Lee 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 convicted by a jury on federal 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.  A third defendant in the market manipulation scheme, Peter P. Veugeler, previously pleaded guilty and testified at trial.

“These defendants manipulated the stock of a publicly traded company by carrying out two schemes,” said U.S. Attorney Byung J. “BJay” Pak.  “The defendants made over $2.5 million off the backs of many unwitting investors who bought while the stock price was artificially high due to the defendants’ rigging the market.  At the same time, Bercoon and Goldstein ripped off investors in a separate, private company, by selling them shares based on lies and false pretenses.  The jury’s verdict vindicates the victims and emphasizes the seriousness of securities fraud involving publicly traded companies.”

“Hopefully these convictions will give the many people, who unknowingly invested in the fraudulent stock, some solace,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “It’s easy to dismiss financial fraud cases like this as benign, but there is a real victimization and lives are changed because of it.”

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 Veugeler and 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.

Around the same time, 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/share, and that no more than 12.5% of investments would go toward commissions.  Despite these representations in the written offering materials, 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, 57, of Atlanta, Georgia, and William A. Goldstein, 54, of Alpharetta, Georgia, were convicted on 12 counts of conspiracy, mail fraud, wire fraud, and securities fraud in connection with the two fraudulent schemes.  Both defendants were remanded into custody after the verdict.  Peter P. Veugeler, 49, of Windermere, Florida, previously pleaded guilty to conspiracy to commit securities fraud and wire fraud and testified at trial.  Bercoon and Goldstein are scheduled to be sentenced on May 30th and 31st, at 9:00 a.m.  The sentencing for Veugeler has not yet been scheduled.

This case is being investigated by the FBI.  The Atlanta Regional Office of the SEC, the Los Angeles Regional Office of the SEC, and the Criminal Prosecution Assistance Group of FINRA have provided valuable contributions in the case.

Assistant U.S. Attorneys Alana R. Black, Stephen H. McClain, and Kamal Ghali 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 - Timothy Chenault, who traveled from Oregon to Georgia but then did not register as a sex offender here, has pleaded guilty to a charge of failing to update or maintain his status on the Sex Offender Registry.

“Citizens have a right to know if they live or work near a sex offender,” said U.S. Attorney Byung J. “BJay” Pak. “This is a matter of public safety.  Sex offenders who do not believe they must register any longer will be found and held accountable for their willful failure to comply with the law.”

“The enforcement of the Sex Offender Registration and Notification Act is a priority of the U.S. Marshals Service and we will continue to monitor and seek out those who are under the requirements of the Act to ensure compliance. We will move and take actions against individuals when we find noncompliance,” said Beverly Harvard, U.S. Marshal for the Northern District of Georgia. 

According to U.S. Attorney Pak, the charges and other information presented in court: The Sex Offender Registration and Notification Act requires people who commit certain sex crimes to register as sex offenders regardless of what state they live in or what state they move to. In this case, in June 1992, Timothy Chenault lured a 14-year-old girl to a field in Oregon, where he sexually assaulted her and threatened to harm her if she told anyone what he did. He was convicted in November 1992 of attempt to commit rape and sexual abuse. This conviction required him to register as a sex offender, and, indeed, he did register in Oregon when he was released from prison in 1994. He continued to register through December 2013.

However, by February 13, 2015, Chenault had moved to Georgia. He never informed law enforcement in Oregon that he was leaving that state, nor did he ever registered as a sex offender while living in Georgia.

Sentencing for Timothy Chenault, 48, of Atlanta, Georgia, is scheduled for May 15, 2018, at 9:30 a.m. before U.S. District Judge William S. Duffey Jr.

This case is being investigated by the U.S. Marshals Service.

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 – Octaveon Woods has been arraigned on wire fraud and money laundering charges for his scheme to defraud colleges, universities, and others by falsely claiming that he was a booking agent for famous musicians such as Migos, Lil Yachty, and Lil Uzi Vert.

“Woods allegedly convinced others to pay him thousands of dollars to ‘book’ these artists for concerts and festivals—when he had no relationship with the artists at all,” said U.S. Attorney Byung J. “BJay” Pak. “Woods immediately laundered the money to try and conceal his fraud.”

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 Lil Uzi Vert.

Student groups at Emory University, the University of Missouri, and other victims hired Woods’ companies to book these artists for concerts and festivals. In reality, neither Woods nor his companies had any relationship with these artists. As soon as his victims would wire him money to book the concerts, Woods drained the funds by transferring them to other accounts and withdrawing them as cash.

Octaveon Woods, 26, of Decatur, Illinois, was arraigned this week before U.S. Magistrate Judge John K. Larkins, III. He was indicted by a federal grand jury on February 6, 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 his guilt beyond a reasonable doubt at trial.

This case is being investigated by the U.S. Department of Education Office of Inspector General.

Assistant U.S. Attorney Lynsey M. Barron 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 - Dwight Hamilton has been sentenced to one year in prison for abusing a female inmate by tasing her without any legitimate justification. Leonard Dreyer, Hamilton's former supervisor at the jail, was sentenced on Tuesday February 6, 2018, to 21 days of confinement in a halfway house for attempting to obstruct the federal investigation into Hamilton's use of excessive force by making false statements to the FBI.

“Abuse of power by any law enforcement officer is always unacceptable,” said U.S. Attorney Byung J. “BJay” Pak.  “Law enforcement officers stand in the gap every day to keep us safe, whether they are patrolling a beat, or a correctional officer working in a jail or prison.  Hamilton’s conduct is not reflective of how we expect officers to conduct themselves.  In this country, even those incarcerated have the right to fair treatment and decency.”

“Hamilton’s unjustified violent actions grossly violated the civil rights of an inmate whom he had a sworn duty to protect,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “Any unlawful act of violence or malice by an officer against an inmate will not be tolerated by this Department of Justice.”

“It is a corrections officer’s duty to protect the constitutional rights of everyone in his or her custody,” said David J. LeValley, Special Agent in Charge of the FBI’s Atlanta Field Office. “This sentence reaffirms the FBI’s commitment to hold those who fail to do so accountable.  However, it should not obscure the fact that the majority of men and women working in correctional facilities conduct themselves admirably under challenging conditions.”

According to U.S. Attorney Pak, the charges and other information presented in court: Hamilton, who worked as a sergeant at the DeKalb County Jail, admitted during his guilty plea that on November 1, 2011, he responded to the medical floor of the jail when an inmate asked to speak to a supervisor because her family visitation had been unexpectedly cancelled by jail staff.  Rather than explain the situation to the inmate, Hamilton tased the inmate until she defecated on herself.  Hamilton, who had been trained on proper Taser usage, admitted that he knew that tasing the inmate under these circumstances was wrong but did it anyway.  As a result of the tasing, the inmate suffered permanent scarring to her breast.

Dwight Hamilton, 54, of Atlanta, Georgia, has been sentenced to one year in federal prison.  When Hamilton is released from prison, he will be under federal supervision for three years.  Hamilton pleaded guilty to his charge on November 20, 2017.

This case was investigated by the Federal Bureau of Investigation.

Assistant U.S. Attorney Brent Alan Gray and Trial Attorney Christopher Perras of the Department of Justice Civil Rights Division prosecuted the case.

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

Dwight Hamilton, 54, of Atlanta, Georgia, was today sentenced to one year in prison, three years’ supervised release, and a $100 special assessment for abusing a female inmate by tasing her without any legitimate justification.  Leonard Dreyer, Hamilton’s former supervisor at the jail, was sentenced on Tuesday to one year of probation conditioned upon his serving 21 days in a halfway house for attempting to obstruct the federal investigation into Hamilton’s use of excessive force by making false statements to the FBI.

 

At the sentencing, Judge Timothy C. Batten, Sr. of the United States District Court for the Northern District of Georgia said Mr. Hamilton’s actions showed an “extraordinary absence of empathy,” and that Hamilton “was out of control and a lot of people suffered because of it.”

 

“Hamilton’s unjustified violent actions grossly violated the civil rights of an inmate whom he had a sworn duty to protect,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “Any unlawful act of violence or malice by an officer against an inmate will not be tolerated by this Department of Justice.”

 

“Abuse of power by any law enforcement officer is always unacceptable,” said U.S. Attorney Byung J. “BJay” Pak.  “Law enforcement officers stand in the gap every day to keep us safe, whether they are patrolling a beat, or a correctional officer working in a jail or prison.  Hamilton’s conduct is not reflective of how we expect officers to conduct themselves.  In this country, even those incarcerated have the right to fair treatment and decency.”

 

Hamilton, who worked as a sergeant at the DeKalb County Jail, admitted during his guilty plea that on Nov. 1, 2011, he responded to the medical floor of the jail when an inmate asked to speak to a supervisor because her family visitation had been unexpectedly cancelled by jail staff.  Rather than explain the situation to the inmate, Hamilton tased the inmate until she defecated on herself.  Hamilton, who had been trained on proper Taser usage, admitted that he knew that tasing the inmate under these circumstances was wrong but did it anyway.  As a result of the tasing, the inmate suffered permanent scarring to her breast.

 

When Hamilton is released from prison, he will be under federal supervision for three years.  Hamilton pleaded guilty to his charge on Nov. 20, 2017.

 

This case was investigated by the Atlanta Division of the Federal Bureau of Investigation, and was prosecuted by Assistant United States Attorney Brent Alan Gray and Trial Attorney Christopher Perras of the Civil Rights Division.

NEWNAN, Ga. - Lloyd Christopher Young has been sentenced to 10 years in prison for receipt and possession of child pornography.  Most of the images were of children between five to twelve years old, but Young collected pictures of infants as well.

“The defendant downloaded and viewed disgusting videos and pictures of young children being sexually abused,” said U.S. Attorney Byung J. “BJay” Pak. “His conduct helped further the sexual exploitation of children and cause irreparable harm to these young victims, all for his personal pleasure.”

“Each time Young viewed the unconscionable images of innocent young children, they were re-victimized,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “We strive every day to protect our children and will continue to use every law enforcement resource available to identify and prosecute individuals who exploit them in such a manner.”

According to U.S. Attorney Pak, the charges and other information presented in court: In 2015, the FBI discovered that Young was accessing an underground child pornography website.  They then executed a search warrant at Young’s home in Fayetteville, Georgia, and seized Young’s computer and USB drive, which contained over 950 videos and images of child pornography.  The majority of the children depicted in these images were between five to twelve years old.  Some of the images, however, were of infants.  When interviewed by law enforcement, Young admitted that he had specifically searched for and downloaded child pornography.

Lloyd Christopher Young, 32, of Fayetteville, Georgia, was sentenced by U.S. District Judge Timothy C. Batten, Sr., to 10 years in prison, to be followed by lifetime supervised release.  He must also register as a sex offender as a condition of his supervised release.  Young was found guilty by a jury on November 7, 2017.

This case was investigated by the Federal Bureau of Investigation.

Assistant U.S. Attorney Jolee Porter prosecuted the case.

This case was 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 - Jahmir Antoine Robinson has been sentenced to four years, six months in federal prison for running a stolen identity refund fraud (SIRF) scheme after he stole the identities of 153 people, and caused a tax loss of approximately $409,000.

“Thieves never stop looking for ways to take what is not theirs, no matter the harm they cause to people whose identity they stole,” said U.S. Attorney Byung J. “BJay” Pak. “Robinson’s theft affect’s not only the 153 who were targeted, it touches all taxpayers.”

“With the filing season just starting this week, it is important that taxpayer’s keep their identities protected and notify the IRS immediately when someone files their tax return without authorization, “ said Thomas J. Holloman, Special Agent in Charge, IRS Criminal Investigation “We will continue to utilize our resources and work with the U.S. Attorney’s Office in holding those accountable who use stolen identities to file fraudulent tax returns.”

According to U.S. Attorney Pak, the charges and other information presented in court:  From April 2011 through April 2012, Jahmir Robinson ran a scheme to defraud the United States by filing false federal income tax returns using stolen identities. Robinson obtained personal identity information, including names, social security numbers, and dates of birth, of true individuals to file federal tax returns without their authorizations.  To circumvent IRS checks and balances, Robinson obtained Employer Identification Numbers (EINs) from the IRS for 17 individual corporations and filed fictitious Forms 944 so that the IRS database would automatically match employer income tax withholdings against the individual returns.

In total, Robinson used the stolen identities and EINs to file 153 fraudulent individual tax returns with the IRS for tax years 2010 and 2011.  Robinson caused the IRS to disburse refunds to an account he controlled. As a result of the scheme, Robinson caused a tax loss totaling $409,114.27.

Jahmir Antoine Robinson, 35, of Lithonia, Georgia, was sentenced by U.S. District Judge Leigh Martin May to four years, six months in prison in federal prison, four years of supervised release, and ordered to pay $240,033.33 in restitution.  Robinson was convicted on these charges on November 8, 2017, after he pleaded guilty.

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

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

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016 or the IRS-Criminal investigation Public Information Officer at Joseph.Ziegler@ci.irs.gov or (216) 407-9614.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA - Jahmir Antoine Robinson has been sentenced to four years, six months in federal prison for running a stolen identity refund fraud (SIRF) scheme after he stole the identities of 153 people, and caused a tax loss of approximately $409,000.

“Thieves never stop looking for ways to take what is not theirs, no matter the harm they cause to people whose identity they stole,” said U.S. Attorney Byung J. “BJay” Pak. “Robinson’s theft affect’s not only the 153 who were targeted, it touches all taxpayers.”

“With the filing season just starting this week, it is important that taxpayer’s keep their identities protected and notify the IRS immediately when someone files their tax return without authorization, “ said Thomas J. Holloman, Special Agent in Charge, IRS Criminal Investigation “We will continue to utilize our resources and work with the U.S. Attorney’s Office in holding those accountable who use stolen identities to file fraudulent tax returns.”

According to U.S. Attorney Pak, the charges and other information presented in court:  From April 2011 through April 2012, Jahmir Robinson ran a scheme to defraud the United States by filing false federal income tax returns using stolen identities. Robinson obtained personal identity information, including names, social security numbers, and dates of birth, of true individuals to file federal tax returns without their authorizations.  To circumvent IRS checks and balances, Robinson obtained Employer Identification Numbers (EINs) from the IRS for 17 individual corporations and filed fictitious Forms 944 so that the IRS database would automatically match employer income tax withholdings against the individual returns.

In total, Robinson used the stolen identities and EINs to file 153 fraudulent individual tax returns with the IRS for tax years 2010 and 2011.  Robinson caused the IRS to disburse refunds to an account he controlled. As a result of the scheme, Robinson caused a tax loss totaling $409,114.27.

Jahmir Antoine Robinson, 35, of Lithonia, Georgia, was sentenced by U.S. District Judge Leigh Martin May to four years, six months in prison in federal prison, four years of supervised release, and ordered to pay $240,033.33 in restitution.  Robinson was convicted on these charges on November 8, 2017, after he pleaded guilty.

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

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

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016 or the IRS-Criminal investigation Public Information Officer at Joseph.Ziegler@ci.irs.gov or (216) 407-9614.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA – Franklin B. Trell has been sentenced for conspiracy to commit wire fraud, bank fraud, and money laundering.  For over seven years, Trell used myriad corporate entities, complex financial arrangements, doctored financial statements, and false statements to defraud multiple financial institutions and one of Trell’s largest investors out of approximately $20 million dollars.

“Fraud undermines investor confidence and eats at the fabric of our economy,” said U.S. Attorney Byung J. “BJay” Pak.  “We and our law enforcement partners will continue to aggressively root-out and prosecute even the most complicated of investment fraud schemes, while securing convictions and strong sentences that will deter others from ever engaging in similar conduct.”

“Individuals who commit this type of fraud should be punished to the fullest extent of the law as a way of deterring this from happening in the future,” said Thomas J. Holloman, Special Agent in Charge, IRS Criminal Investigation.  “We will continue to work with our law enforcement partners and the U.S. Attorney’s Office in protecting the sanctity and integrity of legitimate investment ventures.”

“The sentencing of Trell is very little solace for the many victims who have suffered from his criminal activities,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office. “Even though the defendant has been ordered to pay restitution the victims may never be financially whole again. Hopefully, the punishment will deter others from preying on other unsuspecting investors.”

According to U.S. Attorney Pak, the charges and other information presented in court:  During the timeframe of the conspiracy, Trell and co-defendant Cynthia P. Vinson, on behalf of numerous corporate entities they created, obtained multi-million dollar loans by submitting false statements and invoices to financial institutions about how the money would be spent.  During that time period, Trell and Vinson repeatedly lied to their largest investor for years by falsely representing that Trell was putting up half of the working capital into the various business entities, most of which were in the medical imaging business.  In reality, Trell failed to put in half of the capital and spent much of the investment funds on himself and his family, including spending over $80,000 of the funds on his daughter’s wedding, and over $1.7 million to settle past lawsuits alleging fraud and other misconduct. 

From 2007 to 2010, Trell used investor funds and loan proceeds to settle four lawsuits then pending in Fulton County, Georgia, Superior Court.  He also authorized Vinson to withdraw millions of dollars from the corporate entities, which she used for her personal benefit.  When confronted by his largest investor about the financial state of the corporate entities, Trell presented doctored accounting records and skillfully moved money from one corporate account to another to create the appearance that he was investing money into the businesses as well.  The largest investor gave over $20 million to Trell based on the misrepresentation that Trell was contributing the same amount to the ventures.  In truth, the evidence showed that Trell and Vinson personally profited over $9 million from the scheme. 

From 2006 to 2013, Trell and Vinson used a number of corporate entities to perpetrate their scheme, including MTC Development, LLC; Sunbelt Construction Management, Inc.; Medical Development Group, LLC; Project Personnel Leasing, LLC; MD Office Solutions, LLC; Medical Facility Development Group, LLC; Imaging Center Development Services, LLC; Medical Property Holding, LLC; Medical Software Holding, LLC; Citrus Tower Boulevard Imaging Center, LLC; Palisades at West Paces Imaging Center, LLC: Southcrest Medical Plaza Imaging Center; the Palisades at West Paces Imaging Center, LLC;  Southcrest Medical Plaza Imaging Center; Vinson Holdings, Inc.; Vinson Partners, LLLP; and the Palisades at W. Paces Condo Association, Inc.

Franklin B. Trell, 71, of Atlanta, Georgia, was sentenced by United States District Judge Orinda D. Evans to five years in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $20,100,408.25.  Trell was convicted on June 22, 2017, after he pleaded guilty.

Cynthia P. Vinson, 66, of Gay, Georgia, will be sentenced by Judge Evans on March 7, 2018, at 1:00 p.m.  Vinson was convicted on August 3, 2016, after she pleaded guilty.

This case was investigated by Special Agents of IRS Criminal Investigation and the Federal Bureau of Investigation.

Assistant U.S. Attorney Stephen H. McClain, Chief of the Complex Frauds Section, and Assistant U.S. Attorney Kamal Ghali, Deputy Chief of the Cyber and Intellectual Property 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 – U.S. Attorney for the Northern District of Georgia, Byung J. “BJay” Pak, has announced leadership changes designed to address Department of Justice priorities, critical issues in the district, and the vision for the priorities of this Office, to enhance the mission of the office, and better serve the citizens of this district. 

“As the U.S. Attorney I am grateful for the opportunity to lead an office with so many talented and dedicated professionals,” said U.S. Attorney Byung J. “BJay” Pak.  “It is my sincere belief that these changes will energize the office and help us focus on the matters that are the most impactful to the citizens of our district.” 

These changes became effective on January 16, 2018. The Assistant U.S. Attorney (“AUSA”) and administrative leadership announcements are as follows:

• First Assistant U.S. Attorney Kurt Erskine will continue to serve in his current position. 
• AUSA Gentry Shelnutt will become the Deputy U.S. Attorney.   
• AUSA Yonette Buchanan is the new Criminal Division Chief.  AUSAs Glenn Baker and Jill Steinberg are the new Deputy Criminal Division Chiefs.
• AUSA Lori Beranek is the new Chief of our Civil Division. Additionally, AUSAs Neeli Ben-David and Darcy Coty will serve as Deputy Civil Division Chiefs.
• AUSA Larry Sommerfeld is our new Appeals & Legal Advice Division Chief.
• Greg Marshall will continue to serve in his current position as our Administrative Officer.
• AUSA Richard Moultrie is the new Chief of the Violent Crime & National Security Section (VCNS). AUSAs Katherine Hoffer and Ryan Buchannan will serve as Deputy Chiefs of the VCNS Section.
• AUSA Kim Dammers is the new Chief of our new Organized Crime & Gang Section, and AUSA Mike Herskowitz will serve as the Deputy Chief.
• AUSA Beth Hathaway will continue to serve as Chief of the Transnational Organized Crime Section. AUSAs Lisa Tarvin and Brock Brockington will continue their service as Deputy Chiefs of this section.
• AUSA Doug Gilfillan has been selected to serve as the Chief of the Cyber & Intellectual Property Section. AUSAs Nathan Kitchens and Kamal Ghali will serve as the Deputy Chiefs of C&IPS.
• AUSA Steve McClain has been selected as the new Chief of the Complex Frauds Section. AUSAs Jeffrey Brown and Chris Huber will serve as the Deputy Chiefs of the section.
• AUSA Jeffrey Davis is the new Chief of the Public Integrity and Special Matters Section. AUSA Brent Gray will serve as the Deputy Chief of this section.
• AUSA William Toliver is the Chief the new General Crimes Section.
• AUSA Dahil Goss will continue to as the Chief of the Asset Forfeiture and Money Laundering Section (AFML).  AUSA Michael Brown will serve as the Deputy Chief.
• AUSA Tommy Krepp is the new Chief of our Data Analytics Unit in the Criminal Division.
• AUSA Randy Chartash is the new lead criminal division attorney for our Health Care Fraud Unit. 
• AUSA Lena Amati is the new lead civil division attorney for our Health Care Fraud Unit.   
• AUSA Tom Devlin will continue in his role as Senior Trial Counsel.      
• AUSA Charysse Alexander is also transitioning to a Senior Litigation Counsel.
• AUSA Bill McKinnon, a Senior Litigation Counsel who serves as our Gainesville Division Coordinator, will continue in his leadership role in Gainesville.
• In addition to her role as a Deputy Chief of the VCNS section, AUSA Katherine Hoffer will be the new Rome Division Coordinator.
• AUSA Angela Munson will serve as our Newnan Division Coordinator.

 

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 - Kimverlee Aderhold and Eric E. Ramey, Jr., have been arraigned on federal charges of unlawfully selling stolen medical devices that require a prescription without an actual prescription. Aderhold and Ramey were indicted by a federal grand jury on January 23, 2018.

 

“The medical products the defendants allegedly stole can only be obtained with a prescription from a medical provider,” said U.S. Attorney Byung J. “BJay” Pak. “They sold them to unsuspecting consumers without determining whether the products were safe for the consumers to use and without instructing the consumers on how to use the products safely.  In doing so, the consumers’ health and safety were placed in jeopardy.” 

 

“When prescription devices are stolen and diverted from the legal supply chain, there is no longer any assurance that the products are safe and effective for their intended uses,” said Peter Kuehl, Acting Special Agent in Charge, FDA's Office of Criminal Investigations' Miami Field Office. “This announcement should serve as a reminder of the FDA's continued focus on individuals that put profits ahead of the health and safety of U.S. consumers.”

 

According to U.S. Attorney Pak, the charges, and other information presented in court: Aderhold was employed as the Retail Manager in Georgia for Advanced Home Care, a durable medical device company that has retail locations in Marietta and Norcross. Advanced Home Care is a retail distributor of CPap and BiPap machines and portable oxygen concentrators. The use of these medical products is not safe except when used under the supervision of a medical practitioner licensed by law to oversee their use. Federal law requires that CPap and BiPap machines and portable oxygen concentrators be purchased only with a prescription issued by a licensed medical practitioner.

 

Aderhold allegedly stole CPap and BiPap machines and portable oxygen concentrators from the inventory of the Advanced Home Care stores she managed. She and Ramey would advertise the stolen products for sale, primarily on Craigslist. Once a buyer responded to their advertisement, Ramey or Aderhold allegedly would meet with the buyer and sell the stolen medical equipment for cash only. The defendants did not ask the buyers to produce prescriptions for the devices. Ramey and Aderhold did not provide instructions to the buyers regarding the safe use of the stolen medical devices.      

 

Kimverlee Aderhold, 27, and Eric E. Ramey, Jr., 31, both of Grayson, Georgia, were arraigned before U.S. Magistrate Judge Catherine M. Salinas, and are charged with conspiring to steal medical products that can be obtained only with a prescription and possession of the same stolen medical products. They are also charged with multiple counts of theft of such medical products and possession of stolen medical products. 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 Food and Drug Administration, Office of Criminal Investigations.

 

Assistant U.S. Attorney William L. McKinnon, Jr., is prosecuting the case.

 

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

ATLANTA – U.S. Attorney Byung J. “BJay” Pak announced that the Northern District of Georgia collected $135,962,250.57 in criminal and civil actions in Fiscal Year 2017.  Of this amount, $11,426,485.99 was collected in criminal actions and $124,535,764.58 was collected in civil actions. 

 

Additionally, the Northern District of Georgia worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $196,384,969.10 in cases pursued jointly with these offices.  Of this amount, $16,593.18 was collected in criminal actions and $196,368,375.92 was collected in civil actions.         

           

Overall, the Justice Department collected just over $15 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2017. 

 

“Each day we strive, along with our law enforcement partners, to hold wrongdoers financially responsible for their actions in order to make victims whole, and to safeguard taxpayer dollars,” said U.S. Attorney Byung J. “BJay” Pak.

 

The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims.  The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss.  While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.

 

The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws.  In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.

 

For example, this past year, Northern District of Georgia resolved civil mortgage fraud claims against Prospect Mortgage Company for $4.157 million stemming from Prospect’s failure to adhere to underwriting and quality control requirements on FHA loans.  It resolved a False Claims Act qui tam case against Compassionate Care Hospice for $2.4 million involving alleged kickbacks to its medical director and associate medical directors to induce referrals for hospice services.  And, the office received $5.3 million to resolve allegations against Genesis Healthcare, Inc. for the knowing submission of false claims to Medicare for unnecessary or unskilled outpatient therapy services.

 

Additionally, the U.S. Attorney’s office in the Northern District of Georgia working with partner agencies and divisions, deposited $154,081,713 obtained as a result of asset forfeiture actions in FY 2017.  Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.

 

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 - Quentin Pickett has been sentenced for operating a credit card theft ring that stole hundreds of credit cards that were being mailed to accountholders.  Pickett and his co-conspirators stole credit cards from the secured baggage loading area of Hartsfield-Jackson International Airport and a private mail sorting facility.  After stealing the credit cards, Pickett and his co-conspirators used them at ATMs and elsewhere, attempting over $2.3M in fraudulent transactions and succeeding in extracting approximately $1.7M in funds. 

 

“The harm caused to the citizens and financial institutions affected by this ring is substantial,” said U.S. Attorney Byung J. “BJay” Pak.  “People expect their mail to be handled securely, especially within the protected areas of Hartsfield-Jackson International Airport.  Pickett led a ring of thieves that circumvented the protocols for secure handling of mail, with no care for those affected by this theft.  Citizens must be diligent and continually monitor their own accounts as criminals look for new ways to victimize the public.” 

 

“The U.S. Postal Inspection Service is committed to working with our law enforcement partners to ensure the U.S. Mails are not utilized as a tool to defraud victims in these types of schemes. This investigation is an excellent example of a partnership between law enforcement agencies working together and I fully commend the hard work and countless hours put forth by all the law enforcement agencies involved, which resulted in bringing these individuals to justice,” said David M. McGinnis, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service.

 

“The United States Secret Service and our law enforcement partners will continue to take an aggressive approach to arrest individuals who violate their positions of trust to illegally enrich themselves,” said Kenneth Cronin, Special Agent in Charge of the U.S. Secret Service, Atlanta Field Office. “This sentence should be a warning to Pickett, Herring, and other like-minded criminals that when they steal from the American people they will be punished for their wrongdoings.”

 

According to U.S. Attorney Pak, the charges and other information presented in court: From December of 2015 until April of 2017, the defendants stole credit cards from the secured baggage loading areas of Hartsfield-Jackson International Airport and a private mail sorting facility.  The stolen credit cards were being shipped via the U.S. Postal Service to the rightful accountholders, who were located throughout the United States. 

 

Pickett was involved in almost every aspect of the scheme, interfacing with co-conspirators who stole credit cards and those who were involved in extracting value from the stolen credit cards.  Cornelius Henderson, through his employment at the airport, had access to the airport’s secured baggage loading areas, where he stole mail that contained credit cards.  Treveyon Herring worked at a private mail sorting facility where he also stole mail containing credit cards.  LaSuhn Turner and Brandon Foster participated in the scheme by assisting Pickett in obtaining cash from the stolen credit cards.  Turner used stolen credit cards at ATMs to obtain cash advances.  Foster, through his employment as a bank teller, executed fraudulent transactions at the bank when presented with stolen credit cards by other co-conspirators. 

 

Quentin Pickett, 25, of Jonesboro, Georgia, was sentenced by U.S. District Judge Eleanor L. Ross, to six years, nine months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $1,758,476.67.  Pickett’s co-defendants have also been sentenced:

 

• On January 9, 2018, Cornelius Henderson, 23, of Riverdale, Georgia, was sentenced to serve five years and five months in prison, to be followed by three years of supervised release.  He was ordered to pay restitution in the amount of $478,222.97.
• On January 10, 2018, Treveyon Herring, 22, of Forest Park, Georgia, was sentenced to serve two years in prison, to be followed by three years of supervised release.  He was ordered to pay restitution in the amount of $1,329,334.41.
• On December 7, 2017, LaSuhn Turner, 25 of Stockbridge, Georgia, was sentenced to three years’ probation, with eight months’ home confinement.  He was ordered to pay restitution in the amount of $70,483.50.
• On January 16, 2018, Brandon Foster, 25, of Stockbridge, Georgia, was sentenced to three years’ probation, with eight months’ home confinement.  He was ordered to pay restitution in the amount of $14,831.

 

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

 

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 - Former MARTA Senior Director of Operations Joseph J. Erves has been sentenced to two years, nine months in federal prison for orchestrating a false invoicing scheme that resulted in MARTA paying more than $500,000 for maintenance work that was never performed and for then funneling most of that money into his personal bank accounts.

 

“Given his executive management position, it is clear that MARTA placed great trust and faith in Erves,” said U.S. Attorney Byung J. “BJay” Pak.  “Unfortunately, instead of serving the public interest and taking his civic duty seriously, Erves chose to indulge his desire for money and a fancy car.  His quest for personal enrichment has earned him this sentence and time to reflect on his dishonesty.”

 

“The vast majority of public servants are honest and dedicated people who strive to do the right thing for their constituents and their communities. Unfortunately there are a few, like Mr. Erves, who are only concerned about themselves,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “His actions hit at the heart of government and erode public confidence. That’s why the FBI makes public corruption our top criminal priority.”

 

“Mr. Erves dishonored his position and violated the trust of the Authority and the communities we serve,” said MARTA Police Chief Wanda Dunham.  “This sentence is proof that no one is above the law. The MARTA Police Department continues to take these types of crimes seriously and we will aggressively pursue criminal prosecution.”

 

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

 

From 1993 to 2017, Erves worked for MARTA, ultimately serving as its Senior Director of Operations.  In that position, Erves oversaw the maintenance of all MARTA buses and rail cars and had the authority to approve payments of up to $10,000 to vendors for work performed on behalf of MARTA.

 

Beginning in 2010, Erves retained three different vendors purportedly to perform maintenance projects for MARTA, including repairing brake testing equipment and fixing various MARTA tools and equipment. From approximately June 2010 to December 2016, Erves had fake invoices prepared on behalf of the three vendors for more than 40 maintenance projects for which no work was performed.

 

Erves then used the false invoices as bases to authorize payments to the three vendors.  In many cases, Erves personally approved payments to the vendors knowing that the vendors had not performed any work for MARTA.

 

After receiving payment, the three vendors funneled most of the money they received from MARTA into Erves’s personal bank accounts.  Subsequently, Erves used the money deposited into his accounts to pay personal expenses, such as multiple purchases at high-end department stores and the purchase of a Porsche 911.  Based on Erves’s authority and representations, MARTA paid the three vendors more than $500,000 for maintenance projects where no work was actually performed.

 

Joseph J. Erves, 53, of Lithonia, Georgia, has been sentenced to two years, nine months in federal prison, and ordered to pay $522,825.45 in restitution.  On August 24, 2017, Erves pleaded guilty to one count of Federal Program Theft.

 

The Federal Bureau of Investigation and the MARTA Police Department are investigating this case.

 

Assistant U.S. Attorneys Jeffrey W. Davis and 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.

NEWNAN, Ga. - Ramiro Hermosillo-Salazar has been sentenced to 30 years in prison for violations of federal drug and firearm laws.  Law enforcement uncovered a methamphetamine “superlab” containing approximately 400 pounds of crystal and liquid methamphetamine at Hermosillo’s residence in Palmetto, Georgia, along with several loaded firearms.      

 

“Methamphetamine is the most trafficked illegal drug in Georgia, and it has devastated the lives of many of our fellow citizens,” said U.S. Attorney Byung J. “BJay” Pak.  “Hermosillo produced hundreds of pounds of the drug in a ‘superlab’ in his home where his young children resided.  Thanks to the efforts of the DEA and local law enforcement partners, this cache of drugs is off our streets.  Our effort to aggressively confront the methamphetamine problem continues, and we will seek lengthy sentences for those who peddle this poison.”

 

“The dangers associated with meth remain one of the most significant drug threats facing our community,” said DEA Atlanta Field Division Special Agent in Charge Robert J. Murphy.  “In that regard, DEA Atlanta will continue to work with our law enforcement partners fighting drug trafficking organizations such as this to keep this poison off our streets.”   

 

“The dangers this lab presented to those children that had to live in this and also to the surrounding community was without a doubt a senseless, selfish

criminal act by someone who has no conscious for anyone and flaunts the law. I am proud of the officers, both local and federal, for the tremendous job they did getting this person and the poison he produced off the streets and out of our neighborhoods. Our job is to provide security and safety to our citizens and this was a job done well,” said Coweta County Sheriff Mike Yeager. 

 

According to U.S. Attorney Pak, the charges and other information presented in court: Following a multi-month DEA investigation, agents identified Ramiro Hermosillo-Salazar as a likely member of a methamphetamine trafficking organization.  On June 15, 2017, DEA agents, aided by the Coweta County Sheriff’s Office S.W.A.T. team, executed a federal search warrant at Hermosillo’s residence in Palmetto.  Law enforcement encountered the defendant in the residence and arrested him.  They discovered that Hermosillo was also living at the residence with his three minor children, ages five, eight, and nine. 

         

During the search, agents discovered a methamphetamine “superlab” in a separate building several yards from the house.  The lab contained approximately 300 pounds of highly pure crystal methamphetamine, as well as several gallons of liquid methamphetamine that, if converted to its crystal form, would have yielded an additional 100 pounds of the drug. 

         

Inside the residence, agents also found a second, smaller methamphetamine lab in a room next to the kitchen.  There they discovered several more kilograms of crystal methamphetamine, and over $12,000 in U.S. currency.  Hermosillo had placed three loaded rifles at points throughout the home, one of which was equipped with a high-capacity magazine. 

 

Other evidence of Hermosillo’s drug trafficking included a bulletproof vest and a video surveillance system to monitor the property.  A search of the stored surveillance video revealed that Hermosillo had been operating the “superlab” for at least several months. 

 

On October 4, 2017, Hermosillo pleaded guilty to the following charges: conspiracy to possess methamphetamine with intent to distribute; possession of methamphetamine with intent to distribute; possession of methamphetamine with intent to distribute on premises where minor children resided; and possession of firearms in furtherance of drug trafficking crimes. 

 

U.S District Judge Timothy C. Batten, Sr., sentenced Ramiro Hermosillo-Salazar, 30, of Palmetto, Georgia, to 30 years in prison to be followed by five years of supervised release.  Hermosillo was also ordered to pay restitution to the government for the cost of dismantling the superlab.  Following his term of imprisonment, Hermosillo, a citizen of Mexico, will be deported from the United States. 

 

This case was investigated by the Drug Enforcement Administration.

 

Assistant U.S. Attorney Trevor C. Wilmot 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.

GAINESVILLE, Ga. - Matilda Lynn Prince has been convicted by a federal jury of twenty-nine counts of health care fraud for filing fraudulent claims with Medicare and the Georgia Medicaid program for optometry and ophthalmology services that were never provided to patients.

 

“Prince stole hundreds of thousands of 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.  “Through our partnership with the Georgia Attorney General’s office, we will continue to fight the costly effects of healthcare fraud in this state that divert critical resources away from citizens who truly need these services.”

 

“When Matilda Lynn Prince launched her audacious million-dollar fraud scheme by billing Medicare and Medicaid for services she and her associates never provided, she threatened the integrity of these important health care programs and fraudulently pocketed taxpayer funds,” said Special Agent in Charge Derrick L. Jackson of the HHS Office of Inspector General.  “Along with our law enforcement partners, we will continue to hold such fraudsters accountable for their scams.”

 

“The Medicaid Program is designed to provide benefits to some of the most vulnerable members of our community and depends on the integrity and honesty of those providers who bill Medicaid.  When a provider bills Medicaid for services they did not provide, they victimize and take advantage of the people who need it the most.  Our office will continue to work hand-in-hand with our federal and state partners to investigate these kinds of egregious cases,” said Georgia Attorney General Christopher M. 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 provided 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 receives Medicare or Medicaid funds, Prince operated under a new eye service 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 these two 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.

 

On January 9, 2018, after a jury trial, Matilda Lynn Prince, 41, of Mineral Bluff, Georgia, was convicted of twenty-nine counts of health care fraud.  A sentencing date for Prince has not yet been set.  

 

This case was investigated by the U.S. 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 Nekia S. Hackworth 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 - Adam L. Smith, the former Chief Procurement Officer for the City of Atlanta, has been sentenced to federal prison for conspiring to accept more than $40,000 in bribe payments from a vendor who obtained millions of dollars in city contracts.

 

“As the City of Atlanta’s Chief Procurement Officer, Smith was given great trust and power by its citizens.  He chose to serve his own financial interests rather than use that trust to serve the public,” said U.S. Attorney Byung J. “BJay” Pak. “His prison sentence is a strong reminder to those tempted to trade their public positions and authority for money – the U.S. Attorney’s Office and our law enforcement partners will not stand idly by. To the contrary, we are committed to the investigation and prosecution of public corruption offenses to combat the corrosion of people’s trust in their government.”

 

“Let this sentence serve as a further reminder of the FBI’s commitment to hold public officials accountable by exposing those who engage in criminal conduct,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “We ask that anyone who has information regarding similar actions by any public official to contact their nearest FBI field office.”

 

“Smith abused his position of authority for financial gain, and made a decision to accept bribes and award contracts which were not in the best interest of the public he was hired to serve,” said Thomas J. Holloman, Special Agent in Charge, IRS Criminal Investigation. “Smith is being held accountable and the sentence given today should be a deterrence to those individuals who think that they can accept bribes without legal consequences.”

 

According to U.S. Attorney Pak, the charges, and other information presented in court: From 2003 to February 21, 2017, Smith served as the Chief Procurement Officer for the City of Atlanta, Georgia. As the Chief Procurement Officer, Smith oversaw the City of Atlanta’s purchasing activities and its expenditure of billions of dollars in public money for projects.

 

During Smith’s tenure as the Chief Procurement Officer, Atlanta awarded contracts worth millions of dollars to a particular vendor’s construction firm and joint venture projects of which the same vendor was a partner (the information does not identify the vendor by name).

 

From at least 2015 to January 2017, Smith met privately with the vendor on multiple occasions, frequently at local restaurants. During these meetings, Smith and the vendor discussed Atlanta procurement projects, bids, and solicitations. Often at the time of these meetings, the vendor was actively seeking contracts, projects, and work with Atlanta.

 

After most of these meetings, the vendor and Smith met in the restaurant’s bathroom, where the vendor paid Smith approximately $1,000 in cash. In return for the bribe payments, the vendor expected Smith to use his position and power to assist the vendor with contracting/procurement with Atlanta and to furnish the vendor with future benefits and favors when needed.

 

Given his position, Smith was annually required to sign a financial disclosure statement certifying that he had not received more than $5,000 in annual income from any corporation, partnership, proprietorship, other business entity, other than Atlanta.  Additionally, under Atlanta’s Procurement Code, Smith also had to “make a written determination as to the existence” of any “personal or organizational conflicts of interests exist” between vendors and Atlanta before awarding a vendor a solicited contract. Similarly, Atlanta’s Procurement Code mandated that Smith “certify to the city council” that the winning vendors had disclosed to Atlanta any “organizational and personal relationships” and that the “award of the contract [was] appropriate.”

 

Furthermore, in exchange for those cash payments:

 

• Smith met with the vendor on a regular basis;
• Smith provided the vendor with information and counsel regarding Atlanta’s procurement processes (among other information);
• When the vendor’s firm or joint venture became the successful bidder on an Atlanta contract or Request for Proposal, Smith approved and submitted the award of such procurement projects or bids to Atlanta’s mayor and city council for final authorization;
• Smith never disclosed his ongoing financial relationship with the vendor and/or the vendor’s firm on his Financial Disclosure Statements to Atlanta; and
• Smith never advised Atlanta’s City Council that the vendor’s firm or joint venture had failed to disclose its organizational and personal relationships with him.

 

From 2015 to January 2017, the vendor paid Smith more than $40,000 in cash.

 

On September 25, 2017, Smith, 53, of Atlanta, Georgia, pleaded guilty to conspiratorial bribery.  He was sentenced by U.S. District Judge Steven Jones to two years, three months in prison, three years of supervised release, ordered to pay $44,000 in restitution, and a $25,000 fine.

 

The Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation investigated this case.

 

Assistant U.S. Attorney Jeffrey W. Davis, Chief of the Public Integrity and Special Matters Section, Assistant U.S. Attorney Jill E. Steinberg, Deputy Criminal Division Chief, and First Assistant U.S. Attorney Kurt R. Erskine 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 U.S. Attorney’s Office for the Northern District of Georgia has reached a settlement agreement with textile importer American Dawn, Inc. and its executives Habib Rawjee, Mahmud Rawjee, and Adnan Rawjee (collectively, “American Dawn”) to resolve False Claims Act allegations that American Dawn intentionally misclassified goods imported into the United States in order to pay lower tariff rates. American Dawn agreed to pay $2,338,879 to resolve these allegations.

 

“Importers have an obligation to correctly classify imported goods for tariff purposes,” said U.S. Attorney Byung J. “BJay” Pak.  “American Dawn falsely classified goods which gave them an unfair advantage over other similarly situated importers.  Their actions caused them to pay high damages and penalties under the False Claims Act.”       

 

“Trying to profit by falsely claiming imported products are of a lower value than they are is a costly risk,” said ICE HSI Atlanta Acting Special Agent in Charge Gregory Wiest. “Companies are required to properly identify imports and pay the appropriate tariffs.”

 

“This settlement agreement is another example of CBP’s day to day collaborative efforts between U.S. Customs and Border Protection Officers at ports of entry, Import Specialists with the Centers of Excellence and Expertise, and Immigration & Customs Enforcement Homeland Security Investigations to protect the American public and the U.S. economy.” said Donald F. Yando, Director, Atlanta Field Office U.S. Customs and Border Protection.

 

The U.S. Attorney’s Office initiated an investigation after a former employee of American Dawn filed a qui tam, or whistleblower, complaint in the Northern District of Georgia under the False Claims Act. The False Claims Act permits a private individual, called a relator, to sue on behalf of the government for false claims and to share in any recovery.

 

The relator in this case alleged that American Dawn intentionally misclassified certain textiles, such as bath towels and shop towels, as polishing cloths in order to pay a lower tariff rate.  The U.S Attorney’s Office, in conjunction with agents from the Atlanta offices of U.S. Customs and Border Protection and the Department of Homeland Security, investigated the allegations and determined that American Dawn had misclassified several categories of goods.  These misclassifications resulted in American Dawn paying lower than appropriate tariffs on numerous imports.  As a result of the whistleblower suit and the government’s investigation, American Dawn has agreed to pay $2,338,879.  The relator will receive approximately 17% of this settlement.  

 

Assistant U.S. Attorney Emily Shingler is representing the United States in this matter. The claims resolved by this settlement are allegations only, and there has been no determination of liability.

 

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

ATLANTA – Elmer Uriel Moreno-Armas, Leonardo Garcia Castro, Guillermo Rios, Jorge Alberto Barajas Govea, Pedro Oseguera Ramirez, Hugo Leon-Mendez a/k/a Guero, Warren Ferguson, Stephan Sessoms, and Tyler Owens have been sentenced for their respective roles in trafficking more than 58 gallons of liquid methamphetamine, 28 kilograms of methamphetamine, or “ice,” and 5 kilograms of cocaine. All nine were active participants in a Mexico-based drug trafficking operation.

 

“These defendants are responsible for a significant amount of dangerous narcotics hitting the streets.  Their actions undoubtedly fueled addictions which have ravaged many families and communities of this district,” said U. S. Attorney Byung J. “BJay” Pak.  “Through the dedicated work of law enforcement, these defendants were stopped before they could manufacture any more of this poison destined for our streets.”

 

“Methamphetamine continues to wreak havoc in our communities.  Rest assured DEA and our federal, state and local partners along with our U.S Attorney’s Office are committed to ensuring drug traffickers like these face well deserved justice,” said Atlanta Drug Enforcement Administration Special Agent in Charge Robert J. Murphy.

        

According to U.S. Attorney Pak, the charges and other information presented in court:  Defendants Elmer Uriel Moreno-Armas, Leonardo Garcia Castro, Guillermo Rios, Jorge Alberto Barajas Govea, Pedro Oseguera Ramirez, Hugo Leon-Mendez a/k/a Guero, Warren Ferguson, Stephan Sessoms, and Tyler Owens participated in a drug trafficking operation that involved converting liquid methamphetamine to crystal methamphetamine at various residences throughout the metropolitan Atlanta area and also distributing methamphetamine and cocaine. 

 

In particular, Elmer Uriel Moreno-Armas worked at a residence used by this drug trafficking operation to convert liquid methamphetamine to crystal methamphetamine.  On March 25, 2015, law enforcement was executed a search warrant at the residence where approximately 16 kilograms of methamphetamine and approximately 27 gallons of liquid methamphetamine was seized.  Later that same day law enforcement executed a search warrant at a second residence on the same street.  The traffickers used the home to store liquid methamphetamine and distribute methamphetamine. 

 

At the second residence, law enforcement seized more than 3.5 kilograms of methamphetamine, approximately 27 gallons of liquid methamphetamine, $34,914, as well as a firearm.  Surveillance footage from a security camera at that residence showed Moreno-Armas assisting with the transport of five-gallon buckets full of liquid methamphetamine in the two weeks leading up to March 25, 2015 search warrant execution.  In addition, Moreno-Armas sold approximately one kilogram of methamphetamine to a customer in the parking lot of a retail store in Norcross, Georgia, on May 26, 2015.

 

Leonardo Garcia Castro and Guillermo Rios lived at a College Park, Georgia, residence that this trafficking operation used to convert liquid methamphetamine to crystal methamphetamine.  On November 29, 2016, law enforcement executed a search warrant at this residence.  While there, they noted both Garcia and Rios were covered in methamphetamine residue.  Law enforcement seized approximately six kilograms of methamphetamine that had not been destroyed by Garcia and Castro prior to law enforcement’s entry into the residence. 

 

Jorge Alberto Barajas Govea and Pedro Oseguera Ramirez lived at a Jonesboro, Georgia, property that was being used by the traffickers to convert liquid methamphetamine to crystal methamphetamine.  On November 29, 2016, law enforcement executed a search warrant at this property and seized just over five kilograms of methamphetamine, approximately 4.5 gallons of liquid methamphetamine, approximately one kilogram of cocaine, and $12,284 in cash. 

 

Hugo Leon-Mendez a/k/a Guero routinely visited each of the residences the traffickers used to convert liquid methamphetamine and bought supplies to assist in the methamphetamine conversion process.  He also met at least one of the tractor-trailers that traveled from Texas, likely transporting liquid methamphetamine for conversion at the Jonesboro property.  Leon-Mendez also used his Atlanta residence to store narcotics and conduct narcotics transactions. 

 

On July 23, 2015, Leon-Mendez sold one kilogram of methamphetamine to an undercover agent, half of which he retrieved from his Atlanta residence.  Then in November 2016, he distributed at least five kilograms of methamphetamine to various customers from his residence.  On November 29, 2016, law enforcement executed a search warrant at Leon-Mendez’s Palmetto, Georgia, residence and seized four firearms and $11,178 in cash. 

 

Warren Ferguson, Stephan Sessoms, and Tyler Owens, together, distributed methamphetamine and cocaine for this drug trafficking operation.  Through traffic stops and an undercover operation, law enforcement seized approximately 25 kilograms of methamphetamine and five kilograms of cocaine between April 2015 and March 2016. 

 

During a traffic stop on March 15, 2016, in particular, law enforcement seized approximately ten kilograms of methamphetamine and a loaded firearm from Sessoms.  Just prior to the stop, Sessoms and Owens had met with other participants of this drug trafficking operation.  

         

All nine defendants were sentenced by U.S. District Court Judge Timothy C. Batten, Sr. to the following sentences:

 

• • Elmer Uriel Moreno-Armas, 31, of Mexico, was sentenced to seven years and seven months in prison, followed by five years of supervised release.  In addition, the Court ordered Moreno-Armas to be turned over to Immigration officials for removal proceedings after serving his custodial sentence.  Moreno-Armas pleaded guilty to conspiracy to possess with the intent to distribute 50 grams or more of methamphetamine on June 14, 2017.

 

• • Leonardo Garcia Castro, 27, of College Park, Georgia, was sentenced to seven years and seven months in prison, followed by five years of supervised release.  Garcia Castro pleaded guilty to conspiracy to possess with the intent to distribute methamphetamine on May 16, 2017.

 

• • Guillermo Rios, 28, of Mexico, was sentenced to eight years and four months in prison, followed by five years of supervised release.  In addition, the Court ordered Rios to be turned over to Immigration officials for removal proceedings after serving his custodial sentence.  Rios pleaded guilty to conspiracy to possess with the intent to distribute methamphetamine on May 19, 2017.

 

• • Jorge Alberto Barajas Govea, 37, of Mexico, was sentenced to seven years and seven months in prison, followed by five years of supervised release.  In addition, the Court ordered Barajas Govea to be turned over to Immigration officials for removal proceedings after serving his custodial sentence.  Barajas Govea pleaded guilty to conspiracy to possess with the intent to distribute 50 grams or more of methamphetamine on June 14, 2017.

 

• • Pedro Oseguera Ramirez, 28, of Mexico, was sentenced to eight years in prison, followed by five years of supervised release.  In addition, the Court ordered Oseguera Ramirez to be turned over to Immigration officials for removal proceedings after serving his custodial sentence.  Oseguera Ramirez pleaded guilty to conspiracy to possess with the intent to distribute methamphetamine on July 7, 2017.

 

• • Hugo Leon-Mendez, a/k/a Guero, 28, of Mexico, was sentenced to 19 years in prison, followed by five years of supervised release.  In addition, the Court ordered Leon-Mendez to be turned over to Immigration officials for removal proceedings after serving his custodial sentence.  Leon-Mendez pleaded guilty to conspiracy to possess with the intent to distribute 500 grams or more of methamphetamine on May 16, 2017.

 

• • Warren Ferguson, a/k/a Weezy, 37, of Lithonia, Georgia, was sentenced to 18 years in prison, followed by five years of supervised release.  Ferguson pleaded guilty to conspiracy to possess with the intent to distribute 500 grams or more of methamphetamine on April 28, 2017. 

 

• • Stephan Sessoms, 36, of Decatur, Georgia, was sentenced to 15 years in prison, followed by five years of supervised release.  Sessoms pleaded guilty to conspiracy to possess with the intent to distribute 500 grams or more of methamphetamine and possession of a firearm in furtherance of a drug trafficking offense on May 19, 2017.    

 

• • Tyler Owens, a/k/a Unc, 43, of East Point, Georgia, was sentenced to 15 years in prison, followed by five years of supervised release.  Owens pleaded guilty to conspiracy to possess with the intent to distribute 500 grams or more of methamphetamine and possession of a firearm in furtherance of a drug trafficking offense on August 9, 2017. 

 

This case was investigated by the Drug Enforcement Administration.

 

Assistant U.S. Attorney DeLana Jones 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 – Former Roswell, Georgia, city council member Kent Igleheart has pleaded guilty to four counts of producing child pornography, one count of receiving child pornography, and one count of possessing child pornography.

 

“By persuading his minor victims to create and share graphic images of themselves online, Igleheart has caused these children to suffer ongoing and irreparable harm,” said U.S. Attorney Byung J. “BJay” Pak.  “No one expects to see a community leader behave in this kind of heinous manner, and this betrayal of public trust underscores the need for parents to remain aware of how their children are using the internet and social media.”     

 

“There is no sentence that can lessen the harm that has been caused to these young children, but at least this suspect will be stopped from pursuing his egregious acts,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “Unfortunately, this is another stark reminder to parents to be extremely vigilant when their children go online and use social media.”

 

According to U.S. Attorney Pak, the charges, and evidence presented at court: In October 2016, E.B. then 17 years old, contacted the DeKalb County Internet Crimes Against Children Unit to report that she had been communicating online since she was 13 years old with someone who had portrayed himself to be 17 years old.  E.B. reported that she had exchanged sexually graphic photographs and had sexually explicit conversations with the individual. E.B. later discovered that the person with whom she was communicating was Igleheart – not the teenage boy depicted in Igleheart’s profile photograph. 

 

Igleheart acknowledged that he and E.B. had exchanged sexually graphic photographs beginning when she was 13 years old.  He had also booked a hotel and made plans to meet with E.B. on October 20, 2016, to engage in sexual activity with her. Investigators arrested him when he arrived at the Northlake Mall, the pre-arranged location.  DeKalb County investigators and the FBI conducted searches of Igleheart’s phones and computers and found some of the images that E.B. had produced and sent to the defendant at his request.

 

Searches of Igleheart’s phones and computers also revealed that he posed online as “Kent Allen.”   He presented himself as a teenage boy between the ages of 14 and 17 years and engaged in sexually graphic communications with numerous teenage girls, some of whom were as young as 13 years old.  During these conversations, Igleheart persuaded and enticed the girls to take photographs of their genitalia and videos of themselves engaging in sexual conduct and transmit the images to him via the Internet.

 

Kent Igleheart, 54, of Roswell, Georgia, was convicted of four counts of producing child pornography, one count of receiving child pornography, and one count of possessing child pornography.  His sentencing hearing is scheduled for March 26, 2018, before U.S. District Judge Amy Totenberg.

 

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

 

Assistant U.S. Attorneys Yonette Sam Buchanan and Richard S. Moultrie, Jr., 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 home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.

ATLANTA - Kenneth Shipp has been sentenced to eight years, one month in prison for distributing child pornography.  The defendant had hundreds of thousands of photographs and thousands of videos at his residence, which he shared on peer-to-peer websites.

 

“Kenneth Shipp’s collection of child pornography is the largest of anyone ever prosecuted in this district,” said U. S. Attorney Byung J. “BJay” Pak. “It is abhorrent that someone could derive gratification from the sexual abuse of children, and the amount that Shipp possessed is staggering.  We will continue to work with federal and state law enforcement partners to find those who trade and collect child pornography and bring them to justice.”

 

“The outcome of this case should serve as a warning to others we will aggressively investigate and bring to justice those who would prey on our most vulnerable population,” said ICE HSI Atlanta Acting Special Agent in Charge Gregory Wiest.  “HSI continues working closely with our federal and state partners to ensure we identify and arrest the perpetrators of these vile crimes.”

 

According to U.S. Attorney Pak, the charges and other information presented in court: in February 2016, special agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“ICE-HSI”) and the Georgia Bureau of Investigation (“GBI”) were investigating persons who were using peer-to-peer programs to trade images and videos of child pornography. The agents were able to download a video from a computer that showed young boys being sexually abused.  Information that they obtained while downloading the video revealed that it came from a computer at a house in Jonesboro, Georgia.

 

Agents with ICE-HSI obtained a federal search warrant for a house in Jonesboro, and carried out a search on May 9, 2016.  There, agents found numerous computers, laptops, television monitors, thumb drives and other electronic devices, all containing child pornography.  A subsequent examination of those devices showed that Shipp had 447,268 images and 19,395 videos.  Specifically, he had more than 60 terabytes of child pornography.

 

Kenneth Shipp, 58, of Jonesboro, Georgia, has been sentenced to eight years, one months in prison to be followed by 15 years of supervised release.  Shipp was convicted of these charges on October 5, 2017, after he pleaded guilty.

 

This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Georgia Bureau of Investigation.

 

Assistant U.S. Attorney Paul R. Jones 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.