Northern District of Georgia

ATLANTA - Michael McEarchern has been arraigned on federal charges for attempting to use the U.S. mail and telephone communications to hire someone to kill his ex-wife.  McEarchern was indicted by a federal grand jury on January 3, 2018.

 

“This defendant’s alleged actions indicate that he was serious about having his ex-wife murdered,” said U.S. Attorney Byung J. “BJay” Pak.  “By providing an address and up-front money for the would-be assassin, McEarchern left little doubt that if the threat had not been discovered he may have found someone to carry out the heinous deed.”

 

“This case is another example of the lengths the FBI will go, to protect the citizens of this country,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “The arrest demonstrates how law enforcement, working together with concerned citizens, can hold criminals accountable and prevent violence from happening in our communities.”

 

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

 

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

 

Michael McEarchern, 29, of Acworth, Ga., was arraigned before U.S. Magistrate Judge Walter E. Johnson.  Members of the public are reminded that the indictment only contains charges.  The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.

 

This case is being investigated by the Federal Bureau of Investigation, with help from the Bartow County Sheriff’s Office.

 

Assistant U.S. Attorney Kim S. Dammers 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, along with our law enforcement partners, are encouraging both citizens and visitors to be aware of the possibility of sex trafficking during the festivities happening in and around Atlanta this weekend and into next week.  In short, if you believe it might be, tell someone.

 

“Sex traffickers are despicable people, and they use events like the National Championship game to ply their trade,” said U.S. Attorney Byung J. “BJay” Pak.  “These types of events draw large crowds of revelers, and sex traffickers often seek to exploit these types of opportunities. We need everyone’s help in identifying those being trafficked for sex, and in bringing the traffickers to justice.”   

 

Many times those who are being trafficked are homeless, runaway, or abandoned children, but it is not limited to these groups.  Traffickers also seek out at-risk individuals, i.e. those individuals suffering from sexual/physical abuse, or dependency, while also exploiting women and children from other countries – typically from impoverished nations.

 

There are some signs that people should be aware of which may indicate someone is being held against their will and trafficked for sex:

 

• They do not hold their own identity or travel documents;
• They appear to suffer from verbal or psychological abuse designed to intimidate, degrade and frighten the individual;
• They have a trafficker or pimp who controls all their money – the victim will have very little or no pocket money;
• They are extremely nervous, especially if the victim’s “translator” is  their trafficker; and
• They are not allowed to move about by themselves and have little understanding of where they are.

 
Victims may also lack personal items, possessions, or luggage.  They may not have a cell phone or calling card.  Most may also lack private space – a trafficker or an enforcer is always present.  They most likely will not possess financial records or identification documents, or have any knowledge about how to get around in a community.

 

The penalties for sex-trafficking are substantial, but can only be enforced with the help of aware citizens.  If you wish to report a potential sex-trafficking incident please contact the FBI at (770) 216-3000.  

 

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 – Derek Cyrus and Chuck Sandford have been sentenced for running a false invoicing scheme that defrauded the Panda Express restaurant chain of nearly $1.5 million. 

 

“These defendants’ calculated lies and fraud were driven by simple greed,” said U.S. Attorney Byung J. “BJay” Pak.  “They not only stole from this corporation, Cyrus and Sandford also lied in a state court, which demonstrated their lack of respect for the law.  Now they have years to reflect on those actions while serving their federal sentences.” 

 

“As a result of hard work and determination by Special Agents of the FBI, Derek Cyrus and Chuck Sandford are no longer able to deceive an innocent company,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “The FBI will continue to dedicate significant investigative resources to prosecute those who allow their good judgement to be clouded by greed.” 

 

According to U.S. Attorney Pak, the charges, and other information presented in court: Derek Cyrus and Chuck Sandford both owned companies that ostensibly provided recruitment services to corporations.  Cyrus’s company was named “Diversified Recruiters,” and Sandford’s recruitment company was named “Chuck Sandford Consultants” (CSC).  Cyrus also worked as an in-house recruiter for Panda Express in 2012 and early 2013. 

 

Beginning in about January 2013, Cyrus and Sandford submitted fraudulent Diversified Recruiters and CSC invoices to the Panda Express accounts payable department that falsely claimed that they had found qualified job candidates for positions at Panda Express restaurants throughout the United States.  In actuality, the vast majority of the job candidates were either fictitious or had never been recruited by Cyrus or Sandford.  Cyrus also did not tell the accounts payable department that Diversified Recruiters was actually his own company, which allowed him to collect twice for the same recruit.  Based upon these misrepresentations, the accounts payable department issued payments to Diversified Recruiters and CSC, which Cyrus and Sandford used for their own personal benefit.

 

After Cyrus stopped working for Panda Express in March 2013, he continued to send fraudulent Diversified Recruiters and CSC invoices to the accounts payable department.  Cyrus falsely told the accounts payable department that he was still a Panda Express employee and was therefore authorized to submit these invoices.  Sandford paid Cyrus a kickback after the accounts payable department issued payments for the fraudulent CSC invoices.  All told, Cyrus and Sandford netted nearly $1.5 million dollars during the course of this scheme.  

 

Once Panda Express discovered the fraud, they sued Cyrus and Sandford in Cobb County, Georgia.  During the course of that litigation, Cyrus further attempted to cover his tracks by submitting false recruit resumes through his attorney to Panda Express’s corporate counsel.  Additionally, both defendants repeatedly lied under oath during their sworn depositions about their involvement in the fraud scheme. 

 

Derek Cyrus, 53, of Lithonia, Georgia, was sentenced to four years, five months in federal prison.  Chuck Sandford, 74, of Marietta, Georgia, was sentenced to one year, three months in federal prison.  Both defendants had previously pleaded guilty to fraud charges for their role in this scheme. 

 

This case was investigated by the Federal Bureau of Investigation.

 

Assistant U.S. Attorneys Thomas J. Krepp 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 – Xiaohong Huang, also known as “Michelle,” Chan Kong Chow, and Biyun Gong, have been sentenced for conspiring to operate a brothel in Doraville, Georgia, which lured sex-workers to Atlanta from across the U.S.

 

“Interstate prostitution is a serious crime that exploits women and harms our community,” said U.S. Attorney Byung J. “BJay” Pak.  “Brothels remain a blight in segments of our communities. The prosecution of these defendants, the seizure of significant assets, and the dedication of law enforcement resources in targeting this long-running criminal scheme are a warning for others engaged in this conduct.”     

 

“The FBI and its law enforcement partners will not tolerate the ongoing exploitation of disadvantaged people for the profit of a few,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “While we are working vigorously to identify victims of exploitation, we are also sending a message to anyone who engages in these illegal activities that they will be held accountable to the fullest extent of the law.”

 

According to U.S. Attorney Pak, the charge, and evidence presented in court: Xiaohong Huang operated a brothel at a large apartment complex in Doraville from approximately December 2005 through May 2017. Chan Kong Chow and Biyun Gong assisted Huang by managing the day-to-day operations of the business. The defendants induced women of Asian descent to travel to Georgia from across the U.S., including California and New York, for work at the brothel as commercial sex workers.  Huang advertised her business online and by word-of-mouth.

 

The defendants regularly used cellular phones to communicate with women who worked as sex workers at the brothel, and with their male clients. The defendants arranged for sex workers to travel to the brothel on commercial flights into Atlanta approximately every 10 days on a rotating basis.

 

Additionally, as a part of the conspiracy, Huang utilized checking accounts at Bank of America, Wells Fargo Bank, and Metro City Bank, to deposit proceeds derived from the brothel. Huang then used proceeds of the business to pay expenses related to the operation of the brothel. In this way, Huang laundered more than $150,000 in criminally derived proceeds during the conspiracy.

 

• Xiaohong Huang, a/k/a “Michelle,” 45, of China, was sentenced to two years, nine months in federal prison. As part of her sentence, Huang was required to forfeit a large residence in Johns Creek, Georgia, cash, jewelry, and other expensive items.

 

• Chan Kong Chow, 59, of China, was sentenced to one year, nine months in federal prison.

 

• Biyun Gong, 54, of China, was sentenced to one year, three months in federal prison.

 

Huang, Chow, and Gong, pleaded guilty on July 27, 2017, to conspiring to operate an interstate prostitution scheme involving money laundering.

 

Upon completion of their sentences, the Defendants will be immediately transferred to the custody of the Department of Homeland Security, Homeland Security Investigations (ICE), for deportation proceedings and removal from the United States.

 

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

 

Assistant U.S. Attorneys Richard S. Moultrie, Jr. and Bret R. Hobson 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 - Cesar Arbelaez Tabares and Juan Carlos Bazantes, who owned and operated IWES Contractors, Inc., a drywall labor supply company in Norcross, Georgia, have been sentenced to each serve eight years in prison and pay a $75,000 fine following their trial and convictions for submitting false certified payroll forms to the Centers for Disease Control and Prevention (CDC) in connection with a construction project at the federal facility.

 

 “Federal contractors and subcontractors are not immune from rules and laws that apply to any company with employees,” said U.S. Attorney Byung J. “BJay” Pak. “The jury’s verdict and the court’s sentence in this case reinforce that if you want to compete and obtain a federal contract work, you must abide by the law and truthfully report your payroll and employment tax withholdings.”

 

“Cesar Arbelaez Tabares and Juan Carlos Bazantes, as owners and operators of IWES Contractors Inc., had a known legal duty to withhold employment taxes from their employee wages” said James E. Dorsey, Acting Special Agent in Charge, IRS Criminal Investigation. “Tabares and Bazantes’ willful failure to withhold employment taxes was a deliberate attempt to undermine the tax system.  IRS Criminal Investigation will remain committed to investigating and prosecuting employment tax fraud.”

 

“Cesar Arbelaez-Tabares and Juan Carlos Bazantes, principals of IWES Contractors, Inc., a drywall contracting company, submitted fraudulent certified payrolls in violation of the Davis-Bacon and Related Acts. We will continue to investigate those who undermine the U.S. Department of Labor’s ability to ensure that American workers are paid proper wages and that employers make the required payroll deductions and benefit contributions,” stated Rafiq Ahmad, Special Agent-in-Charge of the Atlanta Regional Office, Office of Inspector General, U.S. Department of Labor.

 

“By not withholding employment taxes from their wages, Cesar Arbelaez-Tabares and Juan Carlos of IWES Contractors willfully attempted to defraud the federal government,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “This verdict and sentence demonstrates OIG’s commitment to hold accountable those who commit fraud against HHS agencies and departmental programs.”

 

According to U.S. Attorney Pak, the charges, and other information presented in court: Cesar Arbelaez Tabares was the Chief Executive Officer and Juan Carlos Bazantes was the Chief Financial Officer of IWES, a Norcross-based business that supplied drywall laborers to contractors and subcontractors for construction projects. Beginning in 2012, IWES supplied drywall laborers for a construction project with the CDC.

 

Under the direction of Tabares and Bazantes, IWES maintained a double payroll system for its workers on the CDC project, which internally classified those workers as either “W2.REAL” or “W2.F.2CHK”. Those workers who were classified as “W2.REAL” received one paycheck each pay period with employment taxes withheld, received an IRS Form W-2 at the end of the calendar year, and were reported on quarterly employment taxes filed by IWES with the IRS.

 

Those workers who were classified as “W2.F.2CHK” received two paychecks simultaneously each pay period. The first paycheck totaled the worker’s net pay (gross wages minus employment taxes withheld), while the second paycheck received by the worker totaled the employment taxes withheld from the first paycheck so that the worker, in reality, was receiving his or her gross wages with no tax withholdings. Workers classified as “W2.F.2CHK” performed many of the same job duties as those who were classified as “W2.REAL,” but they did not receive an IRS Form W-2 at the end of the calendar year and were not reported on quarterly employment taxes filed by IWES with the IRS.

 

In connection with its subcontracting work on the CDC project, Tabares and Bazantes caused IWES to submit fraudulent certified payroll forms to the CDC, signed under penalty of perjury, which falsely represented that employment taxes had been withheld for all of the IWES workers on the CDC project, including those whom IWES had internally classified as “W2.F.2CHK” and whose employment tax withholdings were being returned to the employee in the form of a simultaneous second paycheck.

 

Cesar Arbelaez Tabares, 37, of Pembroke Pines, Florida, and Juan Carlos Bazantes, 45, of Miami, Florida, were sentenced by U.S. District Court Judge Steve C. Jones to eight years in federal prison.  Tabares and Bazantes were each ordered to pay a $75,000 fine, and also serve three years of supervised release following completion of their prison sentence.

 

Tabares and Bazantes were found guilty by a jury following a one-week trial in August and September 2017, on one count of conspiracy and six counts of submitting false certified payroll forms to the CDC. They were acquitted of related tax charges.

 

This case was investigated by the Internal Revenue Service Criminal Investigation, the U.S. Department of Labor-Office of Inspector General and the U.S. Department of Health and Human Services-Office of Inspector General.

 

Assistant U.S. Attorneys Steven D. Grimberg and Ryan J. Huschka prosecuted the case. The U.S. Department of Justice Tax Division provided valuable assistance.

 

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

ATLANTA – A federal jury in Atlanta has convicted Erick Powell, a former operator and co-owner of the National Vocation Group job-staffing company, of wire fraud.  A second defendant and co-owner, Ahmad McCormick, pleaded guilty to wire fraud on August 31, 2017.

 

“Powell and his co-defendant used their company to dupe hundreds of job-seekers into paying high fees for unnecessary training with the expectation of placement in jobs that did not exist,” said U.S. Attorney Byung J. “BJay” Pak.  “The jury’s verdict is a strong message to other criminals that law enforcement will find and prosecute any person or company seeking to take advantage of the hard-working citizens of this district.”

 

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

 

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

 

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

 

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

 

On October 25, 2016, a federal grand jury returned an indictment charging McCormick and Powell for wire fraud conspiracy and ten substantive wire fraud counts.  On August 31, 2017, McCormick pled guilty to wire fraud conspiracy pursuant to a guilty plea agreement.  On September 14, 2017, a federal grand jury returned a superseding indictment charging Powell with wire fraud conspiracy and three substantive counts of wire fraud.  On December 11, 2017, after a four-day trial, a federal jury returned a verdict convicting Powell on one count of substantive wire fraud.  The jury acquitted Powell on the other counts.

 

Erick Powell, 29, of New Windsor, New York, and Ahmad McCormick, 31, of Brooklyn, New York, will be sentenced in early 2018.  Both defendants face a statutory maximum penalty of 20 years of imprisonment. 

 

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

 

Assistant U.S. Attorneys John S. Ghose and Lynsey M. Barron 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 - Sven Franssen, a German national residing in the Netherlands, has been sentenced to two years and six months in federal prison for his role in conspiring to launder the proceeds of fraudulent affiliate marketing websites.  The fraudulent sites received increased internet traffic due to a massive computer hacking and illegal spam campaign brought on by a pair of Vietnamese nationals.

 

“Franssen’s sentencing concludes the methodical takedown of a cyber-criminal syndicate,” said U. S. Attorney Byung J. “BJay” Pak. “As cyber-criminals continue to look for ways to commit theft and fraud, law enforcement agencies are continuing their work to neutralize their efforts, and bring them to prosecution.”

 

“The takedown of this criminal organization is an example of how determined and persistent FBI investigators and our federal partners are, no matter where in the world the investigation leads,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “We will vigorously continue to investigate, prosecute and impose stiff penalties on any criminal who believes they can hide in cyber space and prey on the American people with impunity.”

 

“Sven Franssen’s sentencing should be a warning to all operating illegally in the cyber world.  Consumers have an expectation of trust when purchasing good and services through the internet,” said James Dorsey, Acting Special Agent in Charge, Atlanta Field Office.  “IRS Criminal Investigation will continue to work with our law enforcement partners to investigate and prosecute those laundering ill-gotten gains at the expense of consumer trust.”

 

According to U.S. Attorney Pak, the charges and other information presented in court:  In March 2015, a 29-count indictment from the Northern District of Georgia was unsealed against Vietnamese nationals Viet Quoc Nguyen and Giang Hoang Vu, both of whom lived for a period of time in the Netherlands.  The indictment was in connection with their alleged computer hacks of at least eight E-mail Service Providers (“ESPs”) all over the United States, including two ESPs based in the Northern District of Georgia.

 

Email Service Providers are companies that generally offer legitimate email marketing or bulk email services to their clients. Clients hire ESPs to assist with sending bulk emails to customers or potential customers who have opted to receive such emails. “Spam,” by contrast, is a commonly-used term for unsolicited email. ESPs generally take affirmative steps to ensure that their email campaigns are not blocked or classified as “spam” by the recipients’ email programs. 

 

Nguyen and Vu allegedly stole confidential information from the ESPs, including proprietary marketing data containing over one billion email addresses. Nguyen and Vu then allegedly used their unauthorized access to launch spam attacks on tens of millions of email recipients, which helped drive internet traffic to affiliate marketing websites associated with Marketbay.com, which included Nguyen’s own website.

 

Affiliate marketing is a type of business in which persons or companies, known as “affiliates,” enter into formal or informal marketing agreements with companies to generate sales of the companies’ products. In the internet context, affiliates earn commissions on sales to customers who purchase the companies’ products from websites associated with the affiliate.

 

Giang Hoang Vu was arrested by Dutch law enforcement in Deventer, Netherlands, in 2012 and extradited to the United States in March 2014.  On February 5, 2015, Vu pled guilty to conspiracy to commit computer fraud, and on July 27, 2015, he was sentenced to two years in prison. Nguyen is not in custody and remains a fugitive.

 

David-Manuel Santos Da Silva, a Canadian national and a co-owner of the affiliate marketing website Marketbay.com, was also previously charged and convicted in connection with his role in the offense. As the owner and operator of Marketbay.com, Da Silva entered into an affiliate marketing arrangement with Nguyen, which allowed Nguyen to receive commissions on sales generated from internet traffic that he directed to websites promoting specific products. Da Silva knew that Nguyen was spamming to stolen email addresses in order to direct high volumes of internet traffic to his affiliate marketing websites with Marketbay.com. Da Silva conspired with Nguyen and others to promote Nguyen’s hacking and spamming activities by providing him with a platform, through Marketbay.com, to generate sales commissions from his computer hacks.

 

On March 4, 2015, Da Silva was indicted by a federal grand jury in the Northern District of Georgia for conspiracy to commit money laundering with Nguyen and others. Da Silva was arrested while traveling in Ft. Lauderdale, Florida in 2015. He pleaded guilty on November 2, 2015, and on June 14, 2017, he was sentenced to four years, three months in prison.

         

On December 11, 2017, Sven Franssen was sentenced in connection with his role in the offense. Franssen owned and operated Certo Business Solutions B.V. (“Certo”), also known as Multibill, which processed payments for products purchased through affiliate marketing websites associated with Marketbay.com. Franssen knew that affiliates working through Marketbay.com were promoting and selling products through false and fraudulent means. Franssen knew that certain software products sold by affiliates could be publicly downloaded elsewhere for free, and that certain products being promoted for sale were not actually available to sell, or were being sold in violation of a copyright or trademark. For example, Nguyen promoted a product for sale on his website called “Adobe Reader 10” that prominently featured the Adobe logo. In fact, the product that was for sale on Nguyen’s affiliate marketing website with Marketbay.com was not an Adobe-branded product, and was not authorized for sale by Adobe.

 

The products promoted by Marketbay.com affiliates through false and fraudulent means were sold to customers in the Northern District of Georgia and to customers around the world. Franssen received warnings that his company was processing payments from the sale of fraudulent products. Despite these warnings, and on occasion directly in response to them, Franssen advised and encouraged Da Silva and his business partner to conceal and disguise the false and fraudulent nature of the product sales generated by affiliates working through Marketbay.com.

 

During the period of the conspiracy, Franssen’s company processed over $1.5 million in revenue generated from the sale of products that were falsely and fraudulently promoted through Marketbay.com. 

 

Sven Franssen, 53, was sentenced by U.S. District Court Judge Timothy C. Batten Sr. to two years, six months in prison, following his guilty plea to conspiracy to commit money laundering. He was also ordered to forfeit real property in Cape Coral, Florida, and a 24-foot watercraft vessel.

 

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

 

Assistant U.S. Attorneys Steven D. Grimberg and Kelly K. Connors prosecuted the case.

 

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

ATLANTA – Shusta Traverse Gumbs has been convicted of two counts of using a motor vehicle to assault members of the U.S. Marshals Services’ Southeast Regional Fugitive Task Force (SERTF) after he attempted to flee arrest in his vehicle, pinning a Deputy U.S. Marshal with his car in the process.

 

“Gumbs used his vehicle to pin one of the Deputy Marshals between two cars, resulting in serious injury to the officer,” said U.S. Attorney Byung J. “BJay” Pak.  “He also jeopardized the lives of the remaining arresting officers who were near the defendant’s car during the assault. We are committed to backing our men and women in law enforcement, and will use all of our resources to prosecute to the fullest extent of the law those who seek to injure our law enforcement partners who work hard to protect us.”     

 

“Assaulting a federal officer shows a disregard for law and order. We appreciate the hard work of the U.S. Attorney’s Office to bring Gumbs to justice. He was held accountable for this assault by a jury of his peers,” said Keith D. Booker, Chief Inspector, Southeast Regional Fugitive Task Force, U.S. Marshals Service.

 

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

 

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

 

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

 

Shusta Traverse Gumbs, 39, of the U.S. Virgin Islands, was convicted of two counts of forcibly assaulting, impeding, opposing, resisting, or interfering with four federal officers during the performance of their official duties.

 

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

 

Assistant U.S. Attorney Richard S. Moultrie, Jr. 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 with Advanced Plastic Surgery Solutions (“APSS”) to resolve an investigation into allegations that it violated Title III of the Americans with Disabilities Act (“ADA”) by refusing to accept a new patient because of her HIV status. 

“The ADA prohibits healthcare providers from denying services on the basis of a disability or perceived disability,” said U. S. Attorney Byung J. “BJay” Pak.  “When a person is denied service because of a disability, it can be emotionally painful and, in this case, deprive a person of the medical care she desires.  Our office remains committed to eradicating this type of discrimination wherever it may occur."

 

According to the complaint, the complainant attempted to schedule an initial appointment with APSS to discuss cosmetic surgery.  Complainant’s initial call was answered by a third party call center retained by APSS to handle large volumes of telephone calls from prospective patients.  Upon revealing that she had HIV, the call center employee told the complainant that APSS doctors would not perform the procedure.  Complainant called back and spoke with an employee of APSS who also told complainant that under those circumstances, APSS would not perform surgery.  

The settlement requires APSS to draft new policies and procedures indicating that it does not discriminate against persons with disabilities, including persons who have HIV or AIDS.  APSS will also conduct training for its employees, with a focus on HIV-related discrimination.  APSS has agreed to pay $25,000 to compensate the complainant for her emotional distress, and pay a $10,000 civil penalty to the United States. 

The ADA prohibits discrimination against individuals with disabilities by health care professionals.  Denying people with disabilities access to medical services based solely upon the individual's disability, including HIV status, violates the ADA. 

 

This matter was handled by Assistant U.S. Attorney Aileen Bell Hughes, who is the Civil Rights Enforcement Coordinator for the U.S. Attorney’s Office.   

         

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

A federal jury has convicted former Atlanta Police Department Sergeant Trevor King, of Stockbridge, Georgia, of using unreasonable force when he arrested a Walmart shopper who the officer wrongfully suspected of shoplifting a tomato.  King beat the victim with his police-issue baton, breaking two bones in the victim’s leg.  The jury also convicted King of writing a false incident report in an attempt to cover up his wrongdoing.

 

“Law enforcement officers all over the country work tirelessly every day to protect the public from violence,” said Acting Attorney General John Gore of the Civil Rights Department. “This defendant violated the law and his oath as a police officer when he unjustifiably beat a man with a baton, breaking the man’s leg, because he wrongly believed that the man had stolen a tomato.  The Department of Justice will continue to protect all citizens from violations of their constitutional right to safety and security.”

 

“It is extremely disheartening when a law enforcement officer abuses his or her authority and the public’s trust,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “The actions of this officer are especially insulting to the vast majority of those in law enforcement who work so hard with integrity and commitment within the criminal justice system. The FBI will continue to dedicate significant resources to investigate allegations of public corruption involving police officers.”

 

According to U.S. Attorney Pak, the charges and other evidence presented during the trial, Former Sergeant King was working off-duty as a security officer at a Walmart store near downtown Atlanta when he observed a shopper weigh a tomato and walk toward the store’s exit.  King stopped the victim near the door and, within seconds, began to strike the victim with an ASP baton.  King struck the victim seven times, breaking two bones in the victim’s right leg. 

 

As the victim lay on the Walmart floor bleeding from his injuries, King searched the victim and found a receipt for the tomato in the victim’s bag. The receipt showed that the victim paid for the tomato only minutes before King’s attack.  King then wrote a false report to cover up his unjustified assault.  Additionally, King charged the victim with obstructing a shoplifting investigation and with assaulting a police officer. 

 

Following emergency surgery at Grady Hospital, the victim was transported to the Fulton County Jail to be held on King’s bogus charges.  The victim’s criminal charges were ultimately dismissed by a state prosecutor.

ATLANTA – Russian cyber-criminal Roman Valeryevich Seleznev has been sentenced to 14 years in prison for his role in a $50 million cyberfraud ring and for defrauding banks of $9 million through a hacking scheme.

 

“Cybercriminals have victimized our citizens from half-way around the world,” said U.S. Attorney Byung J. “BJay” Pak. “As Seleznev learned, this office has committed resources designed to target cyber-crime and we will pursue these criminals no matter where they reside.  The safety of our citizens is our priority, and we are committed to ending the damage they cause.”

 

“Modern-day hackers can often be considered project managers who oversee complex criminal schemes, and offer their services for hire to other cyber criminals.   Additionally, they rarely limit themselves to a single victim or to a single criminal scheme.  Seleznev was involved in at least three schemes, one of which was a scheme targeting an Atlanta-based company that resulted in the highly coordinated withdrawal of millions of dollars from ATMs throughout the world in under twelve hours. Seleznev's multiple sentences ensure he will no longer be a threat to American financial institutions and citizens for quite some time, and act as a strong deterrent to other cyber criminals offering their services for hire,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.

 

“The Secret Service worked closely with our law enforcement partners to share information and resources that ultimately brought Seleznev and his conspirators to justice,” said Kenneth Cronin, Special Agent in Charge, U.S. Secret Service, Atlanta Field Office.  “Our longstanding role in transnational cyber investigations and network intrusions was crucial in combatting this complex hacking ring.  This sentence illustrates that there is no such thing as anonymity for those engaging in fraudulent schemes and cyber-criminals will not go unpunished.”

 

According to U.S. Attorney Pak, the charges and other information presented in court:  Seleznev, in connection with his guilty plea in the Northern District of Georgia case, admitted that he acted as a “casher” who worked with hackers to coordinate a scheme to defraud an Atlanta-based company that processed credit and debit card transactions on behalf of financial institutions.  Seleznev admitted that pursuant to the scheme, in November 2008, hackers infiltrated the company’s computer systems and accessed 45.5 million debit card numbers, certain of which they used to fraudulently withdraw over $9.4 million from 2,100 ATMs in 280 cities around the world in less than 12 hours.

 

To date, the U.S. Attorney’s Office for the Northern District of Georgia has charged 14 individuals involved in the hack and cashout, including Russian nationals Viktor Pleschuk, Evgeniy Anikin, and Roman Seleznev; Estonian nationals Sergei Tsurikov, Igor Grudijev, Ronald Tsoi, Eveilyn Tsoi, and Mikhail Jevgenov; Moldovan national Oleg Covelin; Ukranian nationals Vladimir Valeyrich Tailar and Evgeny Levitskyy; Nigerian national Ezenwa Chukukere; American national Sonya Martin; and Vladislav Horohorin, who is a citizen of Russia, Israel, and Ukraine.

 

In connection with his guilty plea in the Nevada case, Seleznev admitted that he became associated with the Carder.su organization in January 2009. According to Seleznev’s admissions in his plea agreement, Carder.su was an Internet-based, international criminal enterprise whose members trafficked in compromised credit card account data and counterfeit identifications and committed identity theft, bank fraud and computer crimes. Seleznev admitted that the group tried to protect the anonymity and the security of the enterprise from both rival organizations and law enforcement. For example, members communicated through various secure and encrypted forums, such as chatrooms, private messaging systems, encrypted email, proxies and encrypted virtual private networks. Gaining membership in the group required the recommendation of two current members in good standing.

 

Seleznev further admitted that he sold compromised credit card account data and other personal identifying information to fellow Carder.su members. The defendant sold members such a large volume of product that he created an automated website, which he advertised on the Carder.su organization’s websites. His automated website allowed members to log into and purchase stolen credit card account data. The defendant’s website had a simple interface that allowed members to search for the particular type of credit card information they wanted to buy, add the number of accounts they wished to purchase to their “shopping cart” and upon check out, download the purchased credit card information. Payment of funds was automatically deducted from an established account funded through L.R., an online digital currency payment system.

 

Seleznev further admitted that he sold each account number for approximately $20.  The Carder.su organization’s criminal activities resulted in loss to its victims of at least $50,983,166.35.

 

Roman Valeryevich Seleznev aka Track2, Bulba and Ncux, 33, was sentenced by U.S. District Judge Steve C. Jones of the Northern District of Georgia to serve 14 years in prison for one count of participation in a racketeering enterprise pursuant to an indictment returned in the District of Nevada, and to 14 years in prison for one count of conspiracy to commit bank fraud pursuant to an indictment returned in the Northern District of Georgia, with sentences to run concurrent to one another.  In both cases, Seleznev was ordered three years of supervised release to run concurrently.  He was also ordered restitution in the amount of $50,893,166.35 in the Nevada case and $2,178,349 in the Georgia case.  Seleznev pleaded guilty to the charges on Sept. 7. 

 

Seleznev is also a defendant in a wire fraud and computer hacking case brought by the Department of Justice in the U.S. District Court for the Western District of Washington.  On Aug. 25, 2016, a federal jury convicted Seleznev of 38 counts related to his role in a scheme to hack into point-of-sale computers to steal and sell credit card numbers to the criminal underworld.  On April 21, 2017, Seleznev was sentenced to 27 years in prison for those crimes, which will run concurrent to his sentences.   

 

The cases were investigated by the FBI, HSI, and the U.S. Secret Service. 

 

The Northern District of Georgia case was prosecuted by Assistant U.S. Attorney Kamal Ghali of the Northern District of Georgia.  The Nevada case was prosecuted by Trial Attorney Catherine K. Dick of the DOJ Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Kimberly M. Frayn of the District of Nevada. 

 

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 Russian cyber-criminal was sentenced today to 14 years in prison  for his role in a $50 million cyberfraud ring and for defrauding banks of $9 million through a hacking scheme.

 

Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Acting U.S. Attorney Steven W. Myhre of the District of Nevada, U.S. Attorney Byung J. Pak of the Northern District of Georgia, Assistant Special Agent in Charge Michael Harris of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE HSI), Special Agent in Charge Brian Spellacy of the U.S. Secret Service in Las Vegas, and FBI Special Agent in Charge David J. LeValley in Atlanta made the announcement.

 

Roman Valeryevich Seleznev aka Track2, Bulba and Ncux, 33, was sentenced by U.S. District Judge Steve C. Jones of the Northern District of Georgia to serve 168 months in prison for one count of participation in a racketeering enterprise pursuant to an indictment returned in the District of Nevada, and to 168 months in prisonfor one count of conspiracy to commit bank fraud pursuant to an indictment returned in the Northern District of Georgia, with the sentences to run concurrent to one another. In both cases, Seleznev was ordered three years of supervised release to run concurrently.  He was also ordered restitution in the amount of $50,893,166.35 in the Nevada case and $2,178,349 in the Georgia case. Seleznev pleaded guilty to the charges on Sept. 7. 

 

In connection with his guilty plea in the Nevada case, Seleznev admitted that he became associated with the Carder.su organization, an identify theft and credit card fraud ring, in January 2009.  According to Seleznev’s admissions in his plea agreement, Carder.su was an Internet-based, international criminal enterprise whose members trafficked in compromised credit card account data and counterfeit identifications and committed identity theft, bank fraud, and computer crimes.  Seleznev admitted that the group tried to protect the anonymity and the security of the enterprise from both rival organizations and law enforcement.  For example, members communicated through various secure and encrypted forums, such as chatrooms, private messaging systems, encrypted email, proxies and encrypted virtual private networks. Gaining membership in the group required the recommendation of two current members in good standing.

 

Seleznev further admitted that he sold compromised credit card account data and other personal identifying information to fellow Carder.su members.  The defendant sold members such a large volume of product that he created an automated website, which he advertised on the Carder.su organization’s websites.  His automated website allowed members to log into and purchase stolen credit card account data.  The defendant’s website had a simple interface that allowed members to search for the particular type of credit card information they wanted to buy, add the number of accounts they wished to purchase to their “shopping cart” and upon check out, download the purchased credit card information.  Payment of funds was automatically deducted from an established account funded through L.R., an online digital currency payment system.

 

Seleznev further admitted that he sold each account number for approximately $20.  The Carder.su organization’s criminal activities resulted in loss to its victims of at least $50,893,166.35.

 

In connection with his guilty plea in the Northern District of Georgia case, Seleznev admitted that he acted as a “casher” who worked with hackers to coordinate a scheme to defraud an Atlanta-based company that processed credit and debit card transactions on behalf of financial institutions.  Seleznev admitted that pursuant to the scheme, in November 2008, hackers infiltrated the company’s computer systems and accessed 45.5 million debit card numbers, certain of which they used to fraudulently withdraw over $9.4 million from 2,100 ATMs in 280 cities around the world in less than 12 hours.

 

Fifty-five individuals were charged in four separate indictments in Operation Open Market, which targeted the Carder.su organization. To date, 33 individuals have been convicted and the rest are either fugitives or are pending trial.

 

The cases were investigated by HSI, the U.S. Secret Service, and FBI.  The Nevada case was prosecuted by Trial Attorney Catherine K. Dick of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Kimberly M. Frayn of the District of Nevada.  The Northern District of Georgia case was prosecuted by Assistant U.S. Attorney Kamal Ghali of the Northern District of Georgia.

 

Seleznev is also a defendant in a wire fraud and computer hacking case brought by the Department of Justice in the U.S. District Court for the Western District of Washington.  On Aug. 25, 2016, a federal jury convicted Seleznev of 38 counts related to his role in a scheme to hack into point-of-sale computers to steal and sell credit card numbers to the criminal underworld.  On April 21, Seleznev was sentenced to 27 years in prison for those crimes, which will run concurrent to his sentences today.    

ATLANTA - A former employee of a U.S. government contractor in Afghanistan was sentenced today to 21 months in prison for accepting over $250,000 in illegal kickbacks from an Afghan subcontractor in return for his assistance in obtaining subcontracts on U.S. government contracts.

U.S. Attorney Byung J. “BJay” Pak of the Northern District of Georgia, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, 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 and Director Frank Robey of the U.S. Army Criminal Investigation Command’s (CID) Major Procurement Fraud Unit (MPFU) made the announcement.

Nebraska McAlpine, 57, of Smyrna, Georgia, was sentenced in Atlanta by U.S. District Judge Mark H. Cohen of the Northern District of Georgia.  McAlpine previously pleaded guilty to a one-count Information charging him with one count of accepting illegal kickbacks. The defendant’s prison sentence will be followed by three years of supervised release and 100 hours of community service.

As part of his guilty plea, McAlpine admitted that while he was employed as a project manager for an American defense contractor (the Prime Contractor) in Kabul, Afghanistan, he and an Afghan executive agreed that in exchange for illicit kickbacks, McAlpine would ensure that the Prime Contractor awarded lucrative subcontracts to the executive’s companies.  McAlpine admitted that he repeatedly told his supervisors that these companies should be awarded “sole source” subcontracts, which allowed them to supply services to the Prime Contractor without having to competitively bid on them.  As a result of the kickback scheme, the Prime Contractor paid over $1.6 million to the subcontractor to assist with maintaining the Afghanistan Ministry of the Interior Ultra-High Frequency radio communications system in Kabul, McAlpine admitted. 

McAlpine further admitted that the executive agreed to pay kickbacks to McAlpine totaling approximately 15 percent of the value of the subcontracts, and that in 2015 and 2016, he accepted over $250,000 in kickbacks from the executive.  McAlpine also admitted that he hid the kickbacks from his employer by storing the cash payments in his personal effects and by physically transporting the cash to the United States.  McAlpine then deposited the majority of these funds into his bank accounts at bank branches in the Atlanta metropolitan area, he admitted.

DCIS, SIGAR and Army CID-MPFU investigated the case. Trial Attorney Daniel Butler of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Thomas J. Krepp of the Northern District of Georgia prosecuted the case.

A former employee of a U.S. government contractor in Afghanistan was sentenced today to 21 months in prison for accepting over $250,000 in 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. “BJay” 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 and Director Frank Robey of the U.S. Army Criminal Investigation Command’s (CID) Major Procurement Fraud Unit (MPFU) made the announcement.

 

Nebraska McAlpine, 57, of Smyrna, Georgia, was sentenced in Atlanta by U.S. District Judge Mark H. Cohen of the Northern District of Georgia.  McAlpine previously pleaded guilty to a one-count Information charging him with one count of accepting illegal kickbacks. The defendant’s prison sentence will be followed by three years of supervised release and 100 hours of community service.

 

As part of his guilty plea, McAlpine admitted that while he was employed as a project manager for an American defense contractor (the Prime Contractor) in Kabul, Afghanistan, he and an Afghan executive agreed that in exchange for illicit kickbacks, McAlpine would ensure that the Prime Contractor awarded lucrative subcontracts to the executive’s companies.  McAlpine admitted that he repeatedly told his supervisors that these companies should be awarded “sole source” subcontracts, which allowed them to supply services to the Prime Contractor without having to competitively bid on them.  As a result of the kickback scheme, the Prime Contractor paid over $1.6 million to the subcontractor to assist with maintaining the Afghanistan Ministry of the Interior Ultra-High Frequency radio communications system in Kabul, McAlpine admitted.

 

McAlpine further admitted that the executive agreed to pay kickbacks to McAlpine totaling approximately 15 percent of the value of the subcontracts, and that in 2015 and 2016, he accepted over $250,000 in kickbacks from the executive.  McAlpine also admitted that he hid the kickbacks from his employer by storing the cash payments in his personal effects and by physically transporting the cash to the United States.  McAlpine then deposited the majority of these funds into his bank accounts at bank branches in the Atlanta metropolitan area, he admitted.

 

DCIS, SIGAR and Army CID-MPFU investigated the case. Trial Attorney Daniel Butler of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Thomas J. Krepp of the Northern District of Georgia prosecuted the case.

 

ATLANTA – Former DeKalb County corrections officer Dwight Hamilton has pleaded guilty to abusing a female inmate by tasing her without justification.  Leonard Dreyer, Hamilton’s former supervisor at the jail, previously pleaded guilty to attempting to obstruct the federal investigation into Hamilton’s use of excessive force by making false statements to the FBI. 

 

“Officers who have sworn to maintain security and protect the inmates inside our county jails have a difficult job but despite challenges, most do their work in a professional manner,” said U.S. Attorney Byung J. “BJay” Pak.  “However, Hamilton ignored that oath and unlawfully punished an inmate by inflicting severe pain and causing a permanent injury.  Hamilton’s conduct was clearly a violation of the inmate’s constitutional rights that warranted this criminal prosecution.”

 

“Any correctional officer who violates an individual’s right to due process and protection from unreasonable force will be held accountable under the law,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The Department of Justice will continue to work to ensure that the civil rights of all individuals will be protected.”

 

“This guilty plea in federal court will clearly begin the process of holding former Dekalb County Corrections Officer Hamilton responsible for his criminal conduct involving the tasing of a female inmate.  The FBI continues to play a significant role in investigating credible allegations of law enforcement misconduct, to include those occurring within a correctional facility, and presenting them, when appropriate, for federal prosecution as was the case with Mr. Hamilton,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.

 

According to U.S. Attorney Pak, the charges and other information presented in court: Dwight Hamilton worked as a sergeant at the DeKalb County Jail, and on November 1, 2011, he responded to the medical floor of the jail when a female inmate, T.P., asked to speak to a supervisor because her family visitation had been unexpectedly cancelled.  Rather than explain the situation, Hamilton tased T.P. until she defecated on herself. 

 

Hamilton, who had been trained on proper taser usage, admitted he knew that what he was doing was wrong and continued anyway. As a result of the tasing, Inmate T. P. suffered permanent taser burns to her breast.

 

Sentencing for Dwight Hamilton, 53, of Atlanta, Georgia, will be February 8, 2018, before U.S. District Court Judge Timothy C. Batten.

 

This case is being 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 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 – Gregory McLeod, a former correctional officer with the rank of lieutenant at the U. S. Penitentiary in Atlanta, has pleaded guilty to abusing an inmate by punching him in his face without justification.  McLeod also admitted that he intentionally obstructed a federal investigation into the matter by writing a false incident report.

 

“Working in a correctional facility is stressful and often dangerous work,” said U.S. Attorney Byung J. “BJay” Pak.  “However, McLeod made an unnecessary and unconstitutional assault on an inmate, and then filed a false report to cover it up.  An abuse of the power by any law enforcement officer is unacceptable.”

 

“A correctional officer should never resort to violence or violate an inmate’s constitutional right to protection from unreasonable force, no matter the circumstance,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The Department of Justice will not tolerate any abuse of an individual’s civil rights under the law, or any effort to obstruct justice.”  

 

“No correctional officer is above the law,” stated James F. Boyersmith, Assistant Special Agent-in-Charge of the Department of Justice (DOJ) Office of the Inspector General’s (OIG) Miami Field Office.  “The DOJ OIG takes allegations of civil rights violations and false statements very seriously.  We appreciate the diligent efforts of our fellow law enforcement partners that assisted us in investigating this matter.”

 

“This guilty plea of former U.S. Bureau of Prisons Lieutenant McLeod was triggered by key and credible allegations of inmate abuse by prison staff.  While the FBI would like to remind the public that the vast majority of those working within our nation’s correctional facilities consistently conduct themselves admirably under often harsh conditions, the FBI does have a duty to investigate and present for prosecution those corrections officers or staff members who abuse their authority and positions,” David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.

 

According to U.S. Attorney Pak, the charges and other information presented in court: McLeod, who worked as a supervisor at the prison, strip-searched an inmate in the McLeod’s office in front of three other correctional officers.  McLeod admitted that after the inmate complained that the strip-search was taking too long, he punched the inmate in his face without justification. McLeod also admitted that after the assault, he wrote an incident report and a separate memorandum about the encounter in which he falsely claimed that the inmate swung a closed fist at him and attempted to assault other officers before the inmate was restrained. 

 

Sentencing for Gregory McLeod, 44, of Atlanta, Georgia, will be on February 20, 2018, before U.S. District Court Judge Steve C. Jones.

 

This case is being investigated by the Department of Justice Office of the Inspector General and the Federal Bureau of Investigation.

 

Assistant U.S. Attorney Brent Alan Gray and Trial Attorney Mary J. Hahn of the Department of Justice Civil Rights Division are prosecuting the case.

 

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

ATLANTA - Andres Castaneda-Guzman has been arraigned on charges for taking a 14-year-old girl against her will from Texas to Stockbridge, Georgia, and allegedly engaging in unlawful sexual activity. Castaneda-Guzman, who is in the United States illegally, lived in Jonesboro, Georgia, until August 2017, when he moved to Terrell, Texas.  He was indicted on November 14, 2017.

 

“This kidnapping and sexual assault of a minor is stunning,” said U. S. Attorney Byung J. “BJay” Pak. “Prosecuting violent crime, including child exploitation, is an important priority for the Department of Justice.   We are fully engaged in combatting child exploitation and will prosecute anyone who believes they can pursues this vile practice.” 

 

“Child exploitation in any form is dreadful, but the kidnapping a child for sexual purposes is an atrocity of the worst kind,” said ICE HSI Atlanta Acting Special Agent in Charge Gregory Wiest. “HSI will continue to prioritize child exploitation investigations and utilize all that we bear to bring those accused to justice”

 

According to U.S. Attorney Pak, the indictment, and other information presented in court: On the evening of September 3, 2017, in Terrell, Castaneda-Guzman allegedly persuaded the minor female to get into his vehicle. He then drove her Georgia, where he eventually took her to a hotel in Stockbridge and allegedly forced her to have sexual intercourse with him.  The girl was recovered after Castaneda-Guzman’s former in-laws in Jonesboro notified him that Clayton County law enforcement officers were seeking her return.

 

The indictment alleges that Andres Castaneda-Guzman, 24, formerly of Jonesboro, Georgia, now of Terrell, Texas, kidnapped a minor and transported a minor across state lines for the purpose of engaging in unlawful sexual activity. 

 

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 Department of Homeland Security, Homeland Security Investigations.

 

Assistant U.S. Attorney William Traynor is prosecuting the case.

 

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

 

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

ATLANTA – The last of nine Atlanta-based defendants charged with laundering drug money to Mexico through metro-Atlanta area money remitters has pleaded guilty, concluding a three-year long federal investigation targeting professional money launderers that exposed the ability of drug cartels to launder their illicit proceeds through money remittance companies.    

 

“This investigation revealed how drug cartels use remittance companies to fuel their criminal enterprises,” said U. S. Attorney Byung J. “BJay” Pak.  “Money remitters have strict rules to follow.  When employees make a decision to ignore those rules, both the employee and money remitter businesses can face prosecution.”

 

“This case demonstrates the commitment of HSI and our law enforcement partners to dismantle and bring to justice those involved with trying to circumvent our financial laws and help launder illegal drug proceeds,” said ICE HSI Atlanta Acting Special Gregory Wiest.

“Drug Cartels are constantly looking for conduits like money service businesses to launder their illicit drug proceeds back to Mexico. We work to dismantle drug organizations by cutting off the money flow back to Mexico, this makes it harder for the drug cartels to operate,” said James Dorsey, Acting Special Agent in Charge, Atlanta Field Office. “IRS Criminal Investigation will continue to target these money laundering experts by working jointly with our law enforcement partners.”
 

According to U.S. Attorney Pak, the charges, and other information presented in court: In 2014, federal law enforcement agents began investigating individuals in the metro-Atlanta area that were suspected of laundering drug proceeds to Mexico.  Federal agents utilized cooperating sources to infiltrate these individuals’ networks and determined that the money launderers were frequently using small businesses to send drug proceeds to Mexico.  These small businesses offered “money remittance services,” which allow customers to wire funds to individuals in other countries without using traditional bank accounts. 

 

Investigators determined that managers and employees of a number of metro-Atlanta remitters were knowingly helping the money launderers send drug proceeds to Mexico.  During the course of this investigation, cooperating sources and an undercover law enforcement officer brought drug proceeds or money that was represented as coming from drug sales to different remitters.  In exchange for a kickback, managers and employees of nine different remitters agreed to launder the funds to Mexico by breaking the transactions into smaller amounts and by listing fake sender names, addresses, and telephone numbers.  The investigation revealed that nine metro-Atlanta remitters transmitted more than $40 million over a roughly four-year timeframe.  The resulting guilty pleas in this case made clear that the bulk of this money came from the sale of illegal narcotics.

 

Several of the defendants who pleaded guilty actually served as the Bank Secrecy Act/Anti-Money Laundering (“BSA/AML”) compliance officers for their respective stores and were responsible for detecting and reporting these types of illicit financial transactions.  Instead, these defendants used their anti-money laundering training to help the drug proceeds flow to Mexico undetected. 

 

The recorded undercover transactions that took place during the operation exposed how willing many remitters were to help their customers secretly send drug proceeds to Mexico.  One defendant, who served as a store manager and BSA/AML compliance officer, even gave an undercover officer tips on where to sell drugs in Atlanta.  Another defendant, who also served as a store manager and BSA/AML compliance officer, offered to provide a cooperating source help on obtaining fake identifications so that drug proceeds could be transmitted to Mexico undetected.  

 

The following individuals have pleaded guilty to conspiracy to engage in money laundering and are awaiting sentencing:

 

• Oscar Gustavo Perez-Bernal, 35, of Atlanta, Georgia, was the manager and BSA/AML compliance officer at La Tienda and Cocina Linda Vista, which were both located in Chamblee, Georgia.
   

• Itzayana Guadalupe Perez-Bernal, a/k/a Lupe, 24, of Norcross, Georgia, was an employee at La Tienda.
   
• Norma Dominguez, 57, of Atlanta, Georgia, was the manager and BSA/AML compliance officer at La Veracruzana, which was located in Chamblee, Georgia. 
   
• Norma Carrera, 39, of Atlanta, Georgia, was the manager and BSA/AML compliance officer at Hilos y Estambres Teresita, which was located in Chamblee, Georgia.
   
• Victor Perez, 31, of Lawrenceville, Georgia, was the manager and BSA/AML compliance officer at Intercargo, which had offices in Lawrenceville, Georgia, and Marietta, Georgia.
   
• Merli Sandy Tejeda-Bermudez, a/k/a Jorhley Adadlay-Bermudez, 30, of Duluth, Georgia, was the manager and BSA/compliance officer at Mundo Cargo and RR Latinas, which were both located in Lawrenceville, Georgia.
   
• Daniel Castaneda-Garcia, 32, of Atlanta, Georgia, was the manager and BSA/AML compliance officer at Taqueria el Dany, which was located in Lawrenceville, Georgia.
   
• Lidia Pineda-Altamarino, a/k/a Lily, 33, of Lawrenceville, Georgia.

 

Additionally, Susan Fiorella Ayala-Chavez, a/k/a Pitus, 30, of Lawrenceville, Georgia, pleaded guilty to conspiracy to engage in money laundering and has been sentenced to three years, one month in federal prison.  Ayala-Chavez was an employee at the Rainforest Chevron gas station in Lawrenceville, Georgia. 

 

This case is being investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and Internal Revenue Service Criminal Investigation.  The Gwinnett County Sheriff’s Department, Georgia State Patrol, and Powder Springs Police Department provided valuable assistance throughout the course of the investigation. 

 

Assistant U.S. Attorneys Thomas J. Krepp and Alison B. Prout are prosecuting the case. The Justice Department’s Money Laundering and Asset Recovery Section provided significant assistance.

 

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. - Yosvani Castillo and Rodolfo Arteaga Oliva have been sentenced after pleading guilty to hijacking truckloads of valuable copper wire and other copper products. The Southwire Copper Company, based in Carrollton, Georgia, was one of the pair's primary targets.

 

“Interstate cargo theft is an extremely serious offense that strains the local economy,” said U. S. Attorney Byung J. “BJay” Pak. “These thieves went out of their way to avoid detection and brazenly stole whole trucks filled with copper products.  The financial impact not only affected customers all over the country who buy these products, but they impacted the employees and communities where these companies operate.”

 

“This conviction demonstrates the great work of law enforcement at all levels to investigate and prosecute major cargo theft affecting Georgia and our surrounding states.  The GBI remains committed to working with our local and federal partners to address these types of crimes,” said Vernon Keenan, Director, Georgia Bureau of Investigation.

 

According to U.S. Attorney Pak, the charges, and other information presented in court: On several occasions, defendants Castillo and Oliva drove up from Miami to Carrollton, and conducted surveillance on tractor-trailers as they left the Southwire facility to deliver copper products to customers across the country. In addition to Southwire, the defendants also targeted truckloads leaving the Hussey Copper company in Pennsylvania.

 

The defendants followed the unsuspecting truck until the driver pulled over for a stop, often after hundreds of miles of driving. They would then steal the entire truck and trailer, sometimes transferring the copper into a different trailer they brought with them to avoid detection, and drove the load back to Miami where Castillo arranged to sell the copper for below-market value to a metal recycler.

 

After stealing the trucks, they removed Global Positioning System (“GPS”) trackers from the trucks and installed “jammers,” which are illegal signal-blocking devices that prevent any tracking of GPS devices or cellular phones. The victims, which include not only Southwire and Hussey, but also the transportation companies whose trucks were stolen, sustained over $1.3 million in losses.

 

Rodolfo Arteaga Oliva, 40, of Miami, Florida, was sentenced by Judge Harold Murphy to four years, nine months in prison, to be followed by three years of supervised release.  Yosvani Castillo, 38, also of Miami, Florida, was sentenced on May 10, 2017 to five years, three months in prison to be followed by three years of supervised release. Oliva and Castillo were ordered to pay restitution, jointly and severally, in the amount of $1,107,575.58. Castillo is separately responsible for paying an additional $276,142.68 in restitution.

 

This case was investigated by the Georgia Bureau of Investigation, with substantial assistance provided by Miami-Dade Police Cargo Theft Task Force. 

 

Assistant U.S. Attorney Lynsey M. Barron prosecuted the case.

 

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

ATLANTA - Deanthony Foster has been sentenced to 32 years in prison for participating in armed robberies of seven commercial businesses in the Atlanta area, including Wal-Mart Stores and Citgo Stores.  Foster carried a gun in all of the robberies, pointed the gun at employees, and actually shot into the floor at one of the Wal-Mart robberies while demanding money.  He coordinated with other individuals who acted as lookouts by cell phone.
 

“Foster cared nothing for people or their safety while he sought to enrich himself at the end of a gun,” said U. S. Attorney Byung J. “BJay” Pak.  “He seriously injured one individual and terrorized many others, including employees and members of the public by displaying a firearm, and in one instance, discharging a firearm.  His sentence is lengthy and reflective of the seriousness of his crime.”

 

“Mr. Foster was responsible for a violent crime spree where others were seriously hurt.  As a result of much hard work by many law enforcement agencies working together with federal prosecutors,  this sentencing in federal court to a lengthy prison sentence will not only hold him accountable but will make our community a safer place for all,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.

 

According to U.S. Attorney Pak, the charges and other information presented in court:  From May 15, 2015 to October 26, 2015, Deanthony Foster and others carried out a series of armed robberies before they were identified by the FBI and other law enforcement agencies. Six of the robberies targeted Wal-Mart Stores.  The defendants researched the locations of the stores in Fulton, DeKalb, Gwinnett and Cobb Counties, and then conducted surveillance before and during the robberies.  They communicated by cell phone before and after each robbery, always with one or two of them acting as getaway drivers waiting in the parking lot.  The lookouts were captured on in-store videos while talking on their cell phones and casing the stores. 

 

In each robbery, Foster, also captured on video, entered the stores wearing a surgical mask, with a gun in his hand, and demanded money from employees who were emptying cash registers.  In the last robbery of this series, Foster discharged his gun into the floor near the employees when they did not immediately meet his demands for money. 

 

After the indictment, law enforcement agents found that the defendant had participated in another commercial robbery in Cobb County where he shot an employee in the leg when the victim struggled with him. 
         

Deanthony Foster, 28, of Atlanta, Georgia,  has been sentenced to 32 years in prison to be followed by three years of supervised release, ordered to pay restitution in the amount of $24,791.00, and a special assessment of $200.  Foster was convicted on these charges on August 11, 2017, after he pleaded guilty.

 

This case was investigated by the Federal Bureau of Investigation, the Police Departments of Cobb County, DeKalb County, Gwinnett County, Hapeville, Roswell, Riverdale, Dunwoody, and the Forsyth County Sheriff's Office.

 

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

 

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

ATLANTA – Matthew Harrell, Nikki Richardson, Tomeka Howard and Andrea Barrett have been indicted on multiple counts of conspiracy to commit healthcare fraud and aggravated identify theft related to fraudulent claims filed with the Georgia, Florida and Louisiana Medicaid programs.

 

“Through their scheme, the defendants are alleged to have fraudulently billed over $3 million to Medicaid,” said U.S. Attorney Byung J. “BJay” Pak. “Their greed knew no bounds of decency, as they left a number of victims in their wake.”

 

“The FBI continues to play a key and critical role in protecting federally funded health care based programs, to include Medicaid and Medicare, from those individuals who would, through fraud, attempt to divert those funds to their own accounts and away from those who desperately need the services that they provide.  The federal investigation and resulting federal indictments of these four defendants illustrates not only the problems of healthcare fraud but the aggressive efforts underway by law enforcement to combat it,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.

 

“The defendants allegedly ripped off programs meant to provide critical mental health services for children and adults.  This type of criminal behavior will not be tolerated,” said Derrick L. Jackson, Special Agent in Charge for HHS OIG. “We will continue to work with our law enforcement partners to uncover these fraudulent schemes and bring criminals to justice.”

 

“The Medicaid Program is not an endless source of money, and those who victimize the program take valuable resources away from the people that need them,” said Attorney General Chris Carr.  “The Georgia Attorney General's Office will continue to collaborate with our federal and state partners to investigate these kinds of egregious cases.”

 

“This multi-millon dollar Medicaid scheme spanned several states and involved the stolen identities of medical professionals and children—but through coordinated investigative efforts with our federal partners and Medicaid Fraud Control Units in Georgia and Tennessee this scheme was thwarted and arrests have been made,” said Florida Attorney General Pam Bondi. “Medicaid fraud essentially steals from our taxpayers and we will not tolerate anyone manipulating the program to get rich.”

 

“Medicaid welfare fraud steals money from the taxpayers and jeopardizes care for the needy,” said Louisiana Attorney General Jeff Landry. “We are grateful to have law enforcement partners throughout the country who are committed to investigating, arresting, and prosecuting criminals who defraud our State and its people.”

 

According to U.S. Attorney Pak, the charges, and other information presented in court: The defendants owned or worked with companies that purportedly provided mental health counseling and treatment to children and adults. These companies included, Revive Athletics, Inc., R.A. Florida, Inc., Jode Counseling Treatment and Training Services, LLC, 118 Management and Consulting, Inc., A Brighter Day, LLC, and Lillie Cares Health Services, LLC. These companies billed over $3.7 million in Medicaid claims, and received approximately $2.5 million based on the fraud.  

 

According to the indictment, the defendants stole the identities of mental health service providers, including a psychologist and licensed clinical social workers, in Georgia and Florida. The defendants’ companies then used the stolen identities to submit fraudulent Medicaid claims seeking payment for mental health services that were never provided. The defendants attempted to conceal the fraud scheme by directing employees and contractors to create fraudulent documentation and forge provider signatures to support the fraudulent billing.

 

Matthew Harrell, 42, of Atlanta, Georgia, Nikki Richardson, 42, of Fairburn, Ga., Tomeka Howard, 42, of Decatur, Georgia, and Andrea Barrett, 42, of Virginia Beach, Virginia were indicted on November 7, 2017.

 

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

 

The case is being investigated by the Georgia State Attorney General’s Medicaid Fraud Control Unit, U.S. Department of Health & Human Services, Office of the Inspector General, Federal Bureau of Investigation and the Medicaid Fraud Control Units for Florida and Louisiana. Assistant United States Attorney Jeffrey Brown and Georgia Assistant Attorney General Robin Daitch 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 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 - Ronald L. Wheeler, III, a/k/a Trappy, has been arraigned on federal charges of conspiracy to commit access device fraud.  During the hearing, Wheeler waived indictment and opted to proceed by criminal information.

 

“This defendant was the mouthpiece for AlphaBay on the internet, encouraging others to access the Dark Web and purchase illegal drugs and contraband,” said U.S. Attorney Byung J. “BJay” Pak.  “Like other defendants, Wheeler eventually learned that the Dark Web is not impenetrable; your actions will catch up to you, just like they did in this case.”

 

“Cyber criminals, such as Ronald L. Wheeler, present an omnipresent and increasingly critical threat to our community's safety. By acting as a spokesperson for the criminal element on AlphaBay, he served to further the agendas of those who chose to defy our laws and victimize our communities. He operated with an attitude of impunity, until now,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.

 

“People think the Dark Web allows them to be incognito, conduct criminal activity and profit undetected,” said James E. Dorsey, Acting Special Agent in Charge, IRS Criminal Investigation. “We will continue to work with our law enforcement partners and the United States Attorney’s Office to shine light into the Dark Web and dismantle these corrupt criminal enterprises one at a time.”

 

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 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. 

 

The financial transactions conducted on AlphaBay occurred in virtual cryptocurrencies.  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 in the conspiracy, 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 AlphaBay.  Wheeler’s work with AlphaBay continued until early July 2017, when the FBI and its international law enforcement partners shut down AlphaBay and the AlphaBay owner, Cazes, was arrested in Thailand.

 

Ronald L. Wheeler, III, a/k/a Trappy, 24, of Streamwood, Illinois, was arraigned before U.S. Magistrate Judge Janet F. King.  Members of the public are reminded that the information only contains charges.  The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.

 

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

ATLANTA – Janet West, a former Cox Communications vice president, has pleaded guilty to her part in an embezzlement scheme that cost the company millions of dollars. 

 

“West defrauded a company that trusted her judgment as a vice president,” said U.S. Attorney Byung J. “BJay” Pak.  “The temptation to steal via a credit card may be appealing.  This defendant wishes she had thought twice about the potential outcome.”

 

“This case should be an example that no matter your position, you cannot profit illegally or take advantage of your status in the company you were entrusted to work for,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “The FBI is committed to making cases like this a strong deterrent to greed’s temptation.”     

 

According to U.S. Attorney Pak, the charges and other information presented in court: West was Cox Communications’ Vice President in charge of Nationwide Field Marketing for the company’s plan to bring Gigabit speed connections to markets throughout the United States.  Beginning in 2011, West began directing her assistant to make payments on the assistant’s corporate credit card to a third party company for supposed marketing services.  In reality, a significant portion of these services never actually occurred and the majority of these funds were actually secretly being transferred back to the defendant.  West repeatedly signed false conflict of interest certifications with Cox Communications that failed to disclose the payments she was making to herself. 

 

West caused Cox to make payments totaling $2.4 million to this third party, most of which was then sent back to her.  The defendant then used the embezzled funds for her own personal benefit, including making payments on two houses she owned in Arizona.  Pursuant to the plea agreement in this case, West agreed to forfeit her interests in both of these houses. 

 

Sentencing for Janet West, 47, of Paradise Valley, Arizona, is scheduled for March 12, 2018, at 10:30 a.m., before U.S. District Judge Amy Totenberg.

 

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

 

Assistant U.S. Attorney Thomas J. Krepp and Kelly K. Connors 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 - Gerardo Perez Uribe has been sentenced to 10 years in prison for coercing a minor girl in North Carolina to produce child pornography of herself and send it to him over the Internet.

 

“‘Sextortion’ is a growing problem on social media sites,” said U. S. Attorney Byung J. “BJay” Pak. “Our office along with our federal, state, and local law enforcement partners encourage parents to help us target those who seek to prey on children by watching what your children are doing on the Internet, and who they are communicating with.  Most children do not understand the dangers that may lurk on the Internet, and can easily fall victim to predators like Uribe.”

 

“Social media sites are a convenient way for young children to network with their friends and family, but unfortunately, they also make children easy targets for online predators like Uribe,” said David J. LeValley, Special Agent in Charge of the Atlanta Field Office. “Our Crimes Against Children unit is dedicated to weeding out sexual predators who troll the internet for unsuspecting children. They can’t do it alone and that’s why it is so important for parents to educate their children and monitor their activities on social media sites.”

 

According to U.S. Attorney Pak, the charges and other information presented in court: In the summer of 2014, Perez Uribe met a 12-year-old girl on Facebook. He first told her that he was 13-years-old but later claimed to be 25-years-old. He asked the girl to send him nude images of herself, and she did. After receiving the images in August 2014, Perez Uribe took over the girl’s Facebook account, changed her password, and locked her out of the account. He then threatened to post the girl’s nude images on her Facebook page if she refused to send him more nude photos of herself. The victim believed Perez Uribe’s threat and sent him four photographs of herself that met the federal definition of child pornography. The girl’s parents discovered the crime and reported the incident to the Cabarrus County (North Carolina) Sheriff’s Office. The Sheriff’s Office investigated the case and then referred the matter to the Federal Bureau of Investigation once Perez Uribe was located in Georgia.

 

Gerardo Perez Uribe, 32, of Rex, Georgia, was sentenced to 10 years in prison to be followed by 10 years of supervised release. He pleaded guilty on August 24, 2017. He was born in Mexico but was living in the United States as a permanent resident. He will be deported to Mexico after he completes his prison sentence.

 

This case was investigated by the Federal Bureau of Investigation and Cabarrus County (North Carolina) Sheriff’s Office.

 

Assistant U.S. Attorneys Paul R. Jones and Mary Webb prosecuted the case.

 

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

 

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

ATLANTA - Shandarrick Barnes has pleaded guilty to obstructing justice in the federal corruption investigation involving City of Atlanta government.  The defendant threw a concrete block through the window of E.R. Mitchell’s home, and placed dead rodents on his porch and elsewhere hoping to thwart his cooperation with federal law enforcement.

 

“Barnes threw the concrete block through Mitchell’s dining room window to get him to ‘shut up,’” said U. S. Attorney Byung J. “BJay” Pak.  “Instead, that violent act made Mitchell even more resolute in his cooperation with federal law enforcement.  Barnes now faces a significant prison sentence because he decided to obstruct a federal investigation.”

 

“Attempts to subvert justice, whether through intimidation of witnesses or by any other means, will not be tolerated.  The FBI will expend any resources necessary to ensure that those who seek to obstruct criminal investigations are held accountable for their actions.  This plea by Shandarrick Barnes is evidence of the FBI’s commitment to protect those willing to cooperate with law enforcement’s efforts to improve their communities,”
 

“Individuals who obstruct justice will be held accountable for their actions. Intimidation of witnesses is never acceptable,” said James Dorsey, Acting Special Agent in Charge, IRS Criminal Investigation.  “This investigation was complex and multifaceted, and it underscores the reason we are committed to working with our law enforcement partners to dismantle any and all public corruption schemes.”

 

According to U.S. Attorney Pak, the charges, and other information presented in court:  In late July 2015, special agents with IRS and the FBI approached E.R. Mitchell for an interview relating to an ongoing investigation into corruption at the City of Atlanta.  During the meeting, agents discussed corruption allegations as well as potential tax improprieties.  Shortly after the IRS and FBI agents approached and interviewed him, Mitchell informed others that federal law enforcement had spoken with him and was asking questions. 

 

Mitchell was interviewed on September 2, 2015, by the U.S. Attorney’s Office and FBI and IRS agents and confessed to regularly paying “up-front money” for City of Atlanta contracts.  On September 8, 2015, Mitchell returned to the office and completed a second debriefing with prosecutors and agents. 

 

On September 11, 2015 at approximately 5:30 a.m., Shandarrick Barnes threw a concrete block with the words “ER, keep your mouth shut!” written on the side, through a plate glass window in Mitchell’s home.  When Mitchell emerged from the house to see who had thrown the block, he saw that dead rats had been placed on his porch, car and in his mailbox.  The police and FBI were summoned to the scene and law enforcement obtained security footage from the subdivision.  The video revealed a car that appeared to match Barnes’ vehicle left the area minutes after the block was thrown through the front window.  Further investigation by agents suggested that Barnes was involved. 

 

On July 13 and August 17, 2016, Barnes was interviewed by the FBI and IRS.  During the interviews, he admitted he threw the concrete block through Mitchell’s window.  Barnes specifically acknowledged that he was aware of the IRS tax investigation into Mitchell and others and that agents had asked about Mitchell’s taxes as well as payments Mitchell made to businesses associated with Barnes’ employer.  He was well aware that Mitchell was actively cooperating with agents.  He said he was livid and his decision to throw the brick through Mitchell’s window was motived by his desire to hinder Mitchell’s communication with agents concerning possible tax violations.  He said he felt that Mitchell’s communications to federal law enforcement would negatively affect his employer’s businesses.  Barnes was concerned that the communication with agents was detrimental to obtaining other business that he and others were actively seeking at that time.

 

Sentencing for Shandarrick Barnes, 41, of Atlanta, Georgia, is scheduled for February 7, 2018.

 

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

 

Assistant U.S. Attorneys Kurt R. Erskine and Jeffrey 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.

ATLANTA - Stanley Lamar Bailey has been sentenced to 21 years and 10 months in federal prison for possessing ammunition and a firearm on November 7, 2015, after leading police on a dangerous high-speed chase.

 

“Bailey placed innocent people in danger by leading police on a high-speed chase, eventually crashing his vehicle and fleeing the scene, leaving behind drugs, a thirty-round extended magazine, and a semi-automatic firearm,” said U.S. Attorney Byung J. “BJay” Pak.  “My office brought this case as part of the overall Department of Justice enforcement priorities relating to violent crimes.  Bailey was a serial offender who has been removed from the community, along with any danger that could result from his actions.”

 

“Bailey’s criminal history shows a complete and utter disregard for the lives of others as well as for their personal pursuits,” said ATF Assistant Special Agent in Charge John Schmidt. “This sentence is a direct message to criminals that we will target you and we will ensure that you are prosecuted and removed from our streets.”

 

According to U.S. Attorney Pak, the charges and other information presented in court: On November 7, 2015, a DeKalb County Police Officer was on routine patrol when he saw a car drive past him.  The officer ran a check on the tags of the vehicle.  He learned that its registration was suspended and it had no valid insurance.  As a result, the officer attempted to conduct a traffic stop.  However, when he initiated the stop, the driver, who was later determined to be Bailey, initially slowed down as if to pull over, then sped away. 

 

Bailey briefly traveled into oncoming traffic, wrecked the car by hitting another vehicle, and then ran away on foot.  In the abandoned vehicle, police found Bailey’s wallet, which contained, among other things, Bailey’s Social Security card and Georgia identification card. The photograph on the identification card matched the person who was driving the car and had fled the scene. 

 

In the vehicle, the officer also found marijuana, drug paraphernalia, a Glock semi-automatic pistol, a thirty-round extended magazine, and twenty-eight rounds of 9mm ammunition.  Prior to this incident, Bailey had been convicted of more than seven felonies, including possession with intent to distribute cocaine, possession of a firearm by a convicted felon, burglary, and theft by receiving stolen property.  Subsequent to the November 2015 incident, but before his conviction in this case, Bailey was convicted of aggravated assault and battery/family violence. 
 

Stanley Lamar Bailey, 50, of Decatur, Georgia, has been sentenced to 21 years, 10 months in prison to be followed by three years of supervised release. Bailey was found guilty by a jury on July 11, 2017.

 

The Bureau of Alcohol, Tobacco, Firearms and Explosives and the DeKalb County Police Department investigated this case.

 

Assistant U.S. Attorney Suzette A. Smikle 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 - Elvis Gordon, a U.S. Food and Drug Administration (“FDA”) supervisor, and small business owner Ivan Ponder have been arraigned on bribery and conspiracy charges for using Gordon’s influence to divert FDA contracts to a company owned by Ponder.

 

“Gordon and Ponder allegedly carried out a kickback scheme that lined both their pockets with taxpayer money for nearly six years,” said U. S. Attorney Byung J. “BJay” Pak. “Gordon is charged with violating the public’s trust by taking bribes in exchange for steering FDA business to Ponder.”

 

“Every federal employee has the responsibility to use the public’s funds wisely,” said Antoinette V. Henry, Special Agent in Charge, FDA Office of Criminal Investigations’ Office of Internal Affairs. “When FDA employees abuse that trust, we will act swiftly to investigate and ensure that those responsible are held accountable.”

 

According to U.S. Attorney Pak, the charges, and other information presented in court: Elvis Gordon is the Senior Facilities Manager of the FDA field office in Atlanta, and in that role influences the selection of businesses that do various maintenance work at the FDA building in the Atlanta area.

 

From 2010 until 2016, Gordon allegedly used his position to direct work to P&E Management, a company owned by Ivan Ponder. Ponder, in turn, gave Gordon a debit card tied to P&E’s bank account, which Gordon used for shopping sprees, vacations, and dining out. On one occasion, Gordon used the debit card to pay for FDA business trip expenses, for which Gordon later sought reimbursement from the FDA. P&E also purchased a Cadillac Escalade for Gordon and his wife.

 

Elvis Gordon, 51, of Marietta, Georgia, and Ivan Ponder, 38, of Hiram, Georgia, were arraigned before U.S. Magistrate Judge Catherine M. Salinas. The defendants were indicted by a federal grand jury on October 17, 2017.

 

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

 

This case is being investigated by the U.S. Food and Drug Administration Office of Internal Affairs.

 

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 – A federal jury in Atlanta convicted former Cumming Police Sergeant Nathan VanBuren of taking bribes in exchange for providing sensitive law enforcement information. 

 

“VanBuren broke the very laws he swore to uphold and enforce,” said U.S. Attorney Byung J. “BJay” Pak.  “Police officers are afforded respect, and are expected to model integrity and honesty.  This former officer undermined the hard work of other officers who serve, as well as the community’s trust and respect for the police.”

 

“The FBI is charged with the unfortunate but necessary task of investigating police misconduct, to include corruption.  That was the case with the allegations received involving then Cumming Police Sgt. VanBuren, which resulted in his federal indictment and today’s conviction via jury trial.  The FBI continues to ask the public to do its part by reporting all allegations of public corruption, to include those involving law enforcement,  to their nearest FBI field office for prompt action,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.
 

According to U.S. States Attorney Pak, the charges, and other information presented in court: In July 2015, VanBuren, in his official capacity as a police officer, responded to a 911 call at a citizen’s home in Cumming, Georgia. The citizen was arrested. In July and August 2015, VanBuren and the citizen had additional communications. During those communications, VanBuren asked the citizen for a loan under the guise that his wages were being garnished and he had incurred financial debt due to his son’s medical and surgical expenses. In truth, VanBuren’s salary was not being garnished and his son was neither ill nor had surgery. The citizen felt threatened and reported VanBuren’s actions to the Forsyth County Sheriff’s Department and agreed to cooperate with law enforcement.

 

While cooperating with law enforcement, the citizen provided VanBuren $5000 in response to VanBuren’s repeated requests for money. During that meeting, the citizen asked whether VanBuren would search a sensitive police database to determine whether an individual was an undercover police officer. Ultimately, in exchange for $1000, VanBuren unlawfully accessed a law enforcement database and provided the results of that search to the citizen. VanBuren resigned before he was terminated by the Cumming Police Department.

 

A jury found Nathan VanBuren, 35, of Cumming, Georgia, guilty of honest services wire fraud and computer fraud.  Sentencing for VanBuren has not yet been scheduled.

 

This case is jointly being investigated by the Federal Bureau of Investigation and the Georgia Bureau of Investigation. The Cumming Police Department and Forsyth County Sheriff’s Office assisted with the investigation.

 

Assistant U.S. Attorney Jeffrey Brown 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 – Lieutenant Gregory McLeod, a senior correctional officer at the U.S. Penitentiary in Atlanta, Georgia, has been arraigned following an investigation of an allegation that McLeod used excessive force against an inmate in 2016.  McLeod was indicted by a federal grand jury on October 24, 2017, and has been charged with unnecessarily assaulting the inmate, writing two false official accounts about the encounter, and lying to federal investigators about his conduct.

 

“We recognize that detention officers have a difficult job as they maintain order and protect inmates in our nation’s prisons,” said U.S. Attorney Byung J. “BJay” Pak.  “This officer, however, allegedly abused his power, committed a violent and unnecessary assault on an inmate, and then filed a false report to cover up the incident.”

 

“The FBI continues to play a vital role in ensuring that all credible allegations of civil rights violations involving law enforcement officers are appropriately investigated and prosecuted under one of the several criminal statutes that address civil rights abuses and other criminal conduct by law enforcement and corrections officers.  That was certainly the case with U.S. Bureau of Prisons Lt. McLeod, wherein allegations of excessive force were received, resulting in a federal investigation, grand jury indictment, and today’s arraignment in federal court.  The FBI would like to remind the public, however, that the vast majority of law enforcement officers and corrections officers provide admirable services while often under stressful and time constrained situationss,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.

 

According to U.S. Attorney Pak, the indictment, and other information presented in court:  McLeod, who worked as a supervisor at the prison, allegedly strip-searched an inmate in his office in front of three other correctional officers.  After the inmate complained that the strip-search was taking too long, McLeod repeatedly punched the inmate in his face, injuring him.  Following the assault, McLeod wrote an incident report and a separate memorandum about the encounter in which he falsely claimed that the inmate swung a closed fist at McLeod and attempted to assault other officers before the officers could apply hand and leg restraints.  The indictment charges that McLeod used excessive force and thereby violated the inmate’s constitutional rights. The indictment also accuses McLeod of intentionally impeding and obstructing the investigation of the incident by writing false reports and lying to two federal agents.

 

Gregory McLeod, 44, of East Point, Georgia, was arraigned on these charges during a hearing in federal court before U.S. Magistrate Judge Catherine M. Salinas.

 

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 DOJ Office of Inspector General and the Federal Bureau of Investigation.

 

Assistant U.S. Attorney Brent Alan Gray and DOJ Civil Rights Division Trial Attorney Mary J. Hahn 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 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 - Rosemary Ofume and Donatus Iriele have each been ordered to pay $2.5 million in community restitution.  The community restitution funds are to be paid to the Georgia state agencies responsible for substance abuse treatment and victims assistance.  The defendants, who are husband and wife, formerly owned the Medicine Center Pharmacy in Atlanta, Georgia.  They were sentenced on July 20, 2017, to 19 and 20 years in prison, respectively, for illegally dispensing controlled narcotics to customers of the AMARC “pill mill” pain clinic. 

 

“The defendants used their pharmacy to supply pills to patients of a known ‘pill mill’ and then laundered millions of dollars to conceal their crimes,” said U.S. Attorney Byung J. “BJay” Pak.  “These pharmacists fed opiate addictions among so many as a means to sustain their lifestyles.  Now, they will begin to serve lengthy prison sentences and pay back the state of Georgia to account for some of the harm they caused to the community.  This money will go to help the individuals whose lives have been scarred by addiction.”

 

Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division said, “It is a sad commentary when trusted individuals in the medical community hide behind the veil of legitimacy to commit criminal acts. These pharmacists can no longer fill the opiate cravings of pill-seeking addicts with impunity. Owners and operators of pill mills spin a broad web of deception, reeling in casts of thousands who are addicted to pharmaceutical drugs. This investigation was a success because of the spirited level of law enforcement cooperation.”
 

“These convictions have removed a huge tumor from the cancer that illicit drug distribution has become during our lifetime. The hard work invested in this case by all parties, from the U.S. Attorney’s office, to the boots on the ground front-line drug agents, and everyone in-between, proves what dedication, persistence and cooperation can accomplish. It’s proof positive that just because you have a license to practice pharmacy, you aren’t entitled to put illicitly prescribed drugs on the street and contribute to the skyrocketing opioid addiction and overdose death rates. All health care professionals are put on notice to remember: you are to do no harm. And if you intentionally ignore this charge, you are going to be treated the same as a street-corner drug dealer in this war on opioid abuse,” said Dennis M. Troughton Sr., Director, Georgia Drugs & Narcotics Agency.

 

According to U.S. Attorney Pak, the charges and other information presented in court:  In May 2009, agents of the DEA, working with agents for the IRS, began investigating the AMARC pain clinic, located on Lakewood Avenue in Atlanta and nearby Medicine Center Pharmacy, after receiving information that the clinic and pharmacy were illegitimately prescribing and dispensing pain pills to drug addicts and drug dealers. 

 

The investigation revealed that Godfrey Ilonzo financed and operated at least eight clinics in the metro Atlanta area under the “AMARC” name, including the Lakewood pain clinic and one in Tyrone, Georgia.  Bona Ilonzo (Godfrey Ilonzo’s wife) served as the office manager at the Lakewood AMARC pain clinic.  At various times, Dr. Nevorn Askari and Dr. William Richardson served as the primary doctors for the AMARC pain clinics.  Rosemary Ofume and Donatus Iriele operated the Medicine Center Pharmacy across the street from one of the pain clinics.  Both Godfrey and Bona Ilonzo, as well as Drs. Askari and Richardson, pleaded guilty to charges related to their conduct at the clinic.  Ofume and Iriele were later convicted at trial of drug trafficking and money laundering charges related to the pharmacy.

 

Ofume and Iriele worked together with the Ilonzos and Drs. Askari and Richardson to facilitate the dispensing of oxycodone pills and other opiates to addicts and distributors.  After customers received prescriptions from Askari and Richardson for medically inappropriate and potentially lethal combinations of opiates and other controlled substances, clinic staff told customers to fill their prescriptions across the street at “Rosemary’s pharmacy” (Medicine Center Pharmacy operated by Ofume and Iriele).  Many of those customers traveled to the AMARC clinics and Ofume/Iriele’s pharmacy from counties throughout Georgia and from other states (including Alabama and Ohio). 

 

Customers waited for hours at the Lakewood AMARC pain clinic and paid cash to receive prescriptions for oxycodone/hydrocodone, Xanax, and Soma (the “holy trinity” for resale on the street) before purchasing the pills at high prices from Ofume and Iriele’s pharmacy.  Employees at the AMARC clinics and Ofume and Iriele’s pharmacy received discounts and special treatment, including free office visits and reduced prices for pills dispensed at the pharmacy.  Ofume lied to pharmaceutical distributors to procure astronomical quantities of oxycodone and other prescription pain pills that were then dispensed to customers having obvious signs of addiction or drug diversion.  Between 2009 and 2012, Medicine Center Pharmacy purchased 1,360,410 opioid pills.  Significantly, in 2009, the pharmacy purchased eleven times more oxycodone than the average pharmacy in the state of Georgia. 

 

During the course of the conspiracy, Ofume and Iriele generated more than $5.1 million dollars from unlawful prescriptions issued by doctors affiliated with the AMARC clinics (constituting more than 90% of the pharmacy’s revenue).  Iriele used pharmacy proceeds to purchase three luxury vehicles for his and Ofume’s personal use. Iriele and Ofume also laundered pharmacy proceeds by purchasing vehicles in the United States for individuals in Nigeria while concealing that those customers were depositing equivalent amounts of local Nigerian currency into Iriele’s personal Nigerian bank account.

 

In 2007, the Georgia Board of Pharmacy had revoked Iriele’s pharmacy license (and temporarily suspended Ofume’s pharmacy license) after finding that Ofume and Iriele had failed to account for more than 600,000 controlled substances pills at their pharmacies and had dispensed controlled substances pursuant to more than 1,400 forged prescriptions.

 

Donatus Iriele, 63, of Atlanta, Georgia, was sentenced on July 20, 2017, by U.S. District Judge Steve C. Jones to 20 years in prison, followed by three years of supervised release.  Rosemary Ofume, 59, also of Atlanta, was sentenced by Judge Jones on the same day, to 19 years in prison, followed by three years of supervised release.  Ofume and Iriele were convicted on March 24, 2017, after a three-week jury trial on federal drug and money laundering charges in connection with their operation of Medicine Center Pharmacy, in Atlanta.

 

Based on the convictions, Ofume and Iriele were ordered to forfeit to the United States $16,767 in cash seized from the pharmacy, $133,892.74 in funds seized from the pharmacy’s bank account, a 2009 BMW X5, a 2008 Mercedes Benz ML550, and a 2007 BMW X5.  The Georgia Board of Pharmacy suspended Ofume’s pharmacy license (and the license of Medicine Center Pharmacy) as a result of the convictions.

         

Judge Jones ordered a community restitution award requiring Ofume and Iriele to pay a total of $5 million under Title 18, United States Code, Section 3663(c), to be distributed to the Georgia Department of Behavioral Health and Developmental Disabilities, and the Criminal Justice Coordinating Council for victims’ assistance, in restitution for the public harm caused by Ofume and Iriele’s conduct.  Such a restitution order is the first of its kind in the nation against pharmacists, which also recognizes the public harm diverted opiates have caused the citizens of the state of Georgia.

 

This case was investigated by the Drug Enforcement Administration and Internal Revenue Service Criminal Investigation.

 

Assistant U.S. Attorneys Laurel Boatright, Cassandra Schansman, and Michael Brown 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.com.

 

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 – Eight additional 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.  The defendants were all indicted in United States v. Calvin C. Barnes a/k/a “Big Cal”, Sharon Cecal, Kenneth Cottrell, Zechariah Daniel a/k/a “Zech” a/k/a Leroy Harris, Derrick Lawson, Reynolds Scott III, Anthony Shivers and Calvin C. William a/k/a “Lil’ Cal.”

 

“These defendants conspired to file false claim after false claim against the United States, treating the U.S. Treasury like an ATM and stealing from every honest taxpayer in the process,” said U.S. Attorney Byung J. Pak.  “In addition to prison sentences, these defendants have all been ordered to pay substantial amounts of restitution to claw back the fruits of their criminal conduct and ensure crime doesn’t pay.”

 

“Tax fraud schemes are becoming more complex and perpetrators are continually creating new ways to generate fraudulent claims to the IRS,” said James Dorsey, Acting Special Agent in Charge. “IRS Criminal Investigation will continue to work with our law enforcement partners in uncovering these schemes and bringing the criminals to justice.”

 

“The Secret Service and our law enforcement partners work tirelessly to maintain the taxpayers’ trust in our economic system.  We will continue to combine our investigative capabilities to actively pursue and arrest offenders who violate this trust,” said Kenneth Cronin, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.  “Today’s sentencing should be a warning to criminals and their conspirators that stealing from the American people will not go unpunished.”

 

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

The Internal Revenue Service began investigating the case while the conduct was still ongoing, based on certain similarities in the returns.  However, there was a large break in the investigation when a defendant in an unrelated federal fraud case learned of the conspiracy and decided to cooperate with law enforcement.  The cooperator worked with agents of the U.S. Secret Service to organize a series of undercover meetings with members of the conspiracy, which he recorded.  In the meetings, Anthony Shivers and his brother Charlie Shivers III, a leader of the conspiracy, described the roles of numerous members of the conspiracy and how the returns were prepared and filed.

 

Based on the information and recordings provided by the cooperator, agents obtained a search warrant for the home of Charlie Shivers III, which was executed the morning of Saturday, May 12, 2012 at the same time as his arrest.  The search recovered numerous copies of fraudulent U.S. corporation income tax returns, copies of tax refund checks, some bank records, notes of addresses to which fraudulent checks had been mailed, and cryptic handwritten notes of the dates returns had been filed and the amounts of refunds requested.  Using the large volume of evidence gathered during the search and cooperation from several defendants who began cooperating with law enforcement after it, agents were able to learn the extent of the conspiracy and identify pending fraudulent returns that were part of it, preventing further losses to the U.S. Treasury.

 

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, followed by three years of supervised release. The court announced that it intends to also order restitution of approximately $1,043,851, but held open the final restitution order for seven days to determine whether Barnes is entitled to credit for certain pre-sentencing payments to the IRS.  Barnes pleaded guilty to count six (theft of government funds) on March 1, 2017. 

 

• Sharon Ceacal, 51, of Warner Robins, Georgia, was sentenced on August 2, 2017 to a year and a day in prison, followed by three years of supervised release, and ordered to pay restitution in the amount of $1,549,250.  Ceacal pleaded guilty to count one (false claims conspiracy) on January 11, 2017.

 

• Kenneth Cottrell, 33, of Atlanta, Georgia, was sentenced on July 31, 2017 to 6 months in prison, followed by three years of supervised release, and ordered to pay restitution in the amount of $754,586.  Cottrell pleaded guilty to count one (false claims conspiracy) on March 1, 2017.

 

• 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, followed by three years of supervised release, and ordered to pay restitution in the amount of $2,566,491.  Daniel pleaded guilty to count one (false claims conspiracy) on December 20, 2016.

 

• Derrick Lawson, 43, of Lithonia, Georgia, was sentenced on August 3, 2017 to one year, six months in prison, followed by three years of supervised release, and ordered to pay restitution in the amount of $1,021,705.  Lawson pleaded guilty to count five (theft of government funds) on February 15, 2017.

 

• Reynolds Scott III, 49, of Atlanta, Georgia, was sentenced on August 2, 2017 to four months in prison, followed by three years of supervised release, and ordered to pay restitution in the amount of $1,549,250.  Scott pleaded guilty to count one (false claims conspiracy) on December 20, 2016.

 

• Anthony Shivers, 47, of Lovejoy, Georgia, was sentenced on May 1, 2017 to three years, five months in prison, followed by three years of supervised release, and ordered to pay restitution in the amount of $505,399.  Shivers pleaded guilty to count one (false claims conspiracy) on February 15, 2017.

 

• Calvin C. Williams, a/k/a “Lil’ Cal”, 48, of Smyrna, Georgia, was sentenced on August 2, 2017 to 10 months in prison, followed by three years of supervised release, and ordered to pay restitution in the amount of $1,876,014.  Williams pleaded guilty to count one (false claims conspiracy) on December 20, 2016.

 

Three other defendants were previously sentenced for their roles in the scheme, after being charged under separate indictments:

 

• Charlie Shivers III, of Atlanta, Georgia, pleaded guilty to two counts of filing false claims against the United States on August 9, 2012, and was sentenced to seven years in prison, followed by three years of supervised release, and ordered to pay restitution in the amount of $5,630,681.66.

 

• Kenneth Michael Pettis, Sr., was sentenced to four years, three months in prison, to be followed by three years supervised release.  Pettis had tried to cash two large refund checks generated by the scheme, using fake IDs, and pleaded guilty to one count of conspiracy to steal government funds. 

 

• Demetrius Weddle was sentenced to two years, seven months confinement, to be followed by three years supervised release.  Weddle pleaded guilty to bank fraud, after being caught trying to cash one of the refund checks generated by the scheme. 

 

This case was investigated by the U.S. Secret Service and Internal Revenue Service Criminal Investigation, with valuable assistance from the DeKalb County Police Department.

 

Assistant U.S. Attorney Alana R. Black prosecuted the case.  The previous, related cases against Charlie Shivers III and Kenneth Michael Pettis were prosecuted by Assistant U.S. Attorneys Gale McKenzie and Alana R. Black, and the case against Demetrius Weddle was prosecuted by Assistant U.S. Attorney Stephen H. McClain.

 

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 agents have arrested 17 members and associates of the Nine Trey Gangster Bloods criminal street gang on charges of RICO conspiracy and related charges stemming from an indictment returned by a federal grand jury in the Northern District of Georgia on Oct. 12, which was unsealed yesterday.  A total of 30 gang members and associates were indicted.

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Byung J. “BJay” Pak of the Northern District of Georgia and Special Agent in Charge David J. LeValley of the FBI Atlanta Field Office made the announcement.

“This indictment continues the Department’s efforts to bring to justice the leaders and most violent members of dangerous criminal enterprises like the Nine Trey Gangsters,” said Acting Assistant Attorney General Kenneth A. Blanco.  “By charging those most responsible for the violence and drug dealing perpetrated by members and associates of violent street gangs like the Nine Trey Gangsters, we are making our neighborhoods and communities safer.”

“The alleged crimes relate to drug distribution in the Atlanta area and acts of violence perpetrated largely against the gang’s own members,” said U.S. Attorney Pak.  “Shockingly, the Nine Trey Gangsters in this case appear willing to kill someone or to commit violence over the smallest perceived slight.  Thanks to the hard work of federal and local law enforcement officials, these individuals will now face prosecution for their alleged crimes.”

 “The federal grand jury indictment and the resulting arrests sweeps made by the FBI and its many law enforcement partners stem from an intensive and exhausting FBI led Safe Streets Gang Task Force effort to remove these violent gang members, collectively known as Nine Trey Gangsters, from our streets,” said Special Agent in Charge LeValley.  “The FBI continues to provide significant investigative resources directed toward the dismantling of these types of organized and violent criminal enterprises that do so much harm to our communities and the joint law enforcement operation clearly illustrates this.”

According to the indictment, beginning at least in 2013, the defendants named in the RICO conspiracy charge committed murder, attempted murder, conspired to commit murder, robbery, extortion, firearm crimes, drug trafficking, obstruction of justice and other crimes in furtherance of the Nine Trey Gangsters. 

The RICO conspiracy charge names the following alleged Nine Trey Gangster members as defendants:

• • Gordon Evans, aka QB, 36, of Atlanta;
  • Patrick Caple, aka Zoe, 52, of Atlanta;
  • Gary Sartor, aka G-Stacks, aka Stacks, 33, of Atlanta;
  • Tyrone Clark, aka Tight-Eye, 36, of Marietta;
  • Joseph Riley III, aka Joe Blow, 33, of Atlanta;
  • Khajavius Mitchell, aka KJ, 23, of Atlanta;
  • Tashied Reed, aka Row, aka Tykune, 24, of Atlanta;         
  • Michael Jackson, aka Self-Made, aka MJ, 23, of Clayton County, GA;
  • Brandon Asberry, aka B5, 28, of Atlanta;
  • Jimmy Rosser, aka Lil’ Jimmy, aka Baby Hazo, 25, of Atlanta;
  • Kierra Maheia, aka Erra, 26, of Atlanta;
  • Cetera Bowles-Griffin, aka Bella, 28, of Atlanta;
  • Alfonzo Nalls, aka Offset, 29, of Atlanta; and
  • Raekwon Williams, aka B-Ray, 20, of Atlanta.

In addition to the RICO conspiracy, the Indictment alleges multiple counts of attempted murder and conspiracy to commit murder in aid of racketeering against the following alleged Nine Trey Gangster members: Evans; Caple; Sartor; Clark; Riley; Mitchell; Tashied Reed; Jackson; Asberry; Rosser; Bowles-Griffin; Nalls; Williams; Westly Shivers, a/k/a “Owon,” 27, of Atlanta; and Wajzim Reed a/k/a “Wazi,” 23, of Atlanta.

Further, the Indictment alleges a drug trafficking conspiracy that includes trafficking in methamphetamine, marijuana, prescription medications and heroin, against the following alleged Nine Trey Gangster members and associates: Mitchell; Caple; Sartor; Clark; Riley, Tashied Reid; Jackson; Asberry; Rosser; Bowles-Griffin; Williams; Marcus Russell aka Double M, 26, of Jessup, Georgia; Calmetrius Dawkins, 22, of Atlanta; J’mon Hawkins, a/k/a “Monto Pronto,” 21, of Atlanta; Earl Smiley, 27, of Greeneville, South Carolina; Linnie Andrews, 34, of Atlanta; Adrian Ansley, 27, of Bethlehem, Georgia; Fred Arceneaux, 58, of Bonaire, Georgia; Erick Balcazar, 34, of Marietta; Sheena Brown, 32, of Marietta; Tremaine Garrison, aka Paperwork, 35, of Marietta; Cedrick Hill, aka Ced, 25, of Marietta; Monique Preston, 30, of Marietta; Demario Ridley, aka Lil Yo, 23, of Atlanta and Travis Todd aka T-Raw, 25, of Atlanta.

Maheia and Mitchell are charged with maintaining a drug premises that the gang used as a base to conduct their illegal activities.  Mitchell and Williams are also charged with possessing firearms during their drug trafficking activities.

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 Atlanta’s Safe Streets Gang Task Force, composed of members of the FBI, Atlanta Police Department (PD), Alpharetta PD, Clayton County PD, Cobb County PD, DeKalb PD, Georgia Department of Community Supervision, Georgia Department of Corrections, Gwinnett County PD, Marietta PD and U.S. Postal Inspection Service.  Investigative assistance was also proved by the Georgia State Patrol, Covington PD, Clayton County District Attorney’s Office and Gwinnett County District Attorney’s Office.  The case is being prosecuted by Trial Attorney Rebecca A. Staton of the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office for the Northern District of Georgia.

ATLANTA - Federal agents have arrested 17 members and associates of the Nine Trey Gangster Bloods criminal street gang on charges of RICO conspiracy and related charges stemming from an indictment returned by a federal grand jury on October 12, 2017.  A total of 30 gang members and associates were indicted.

“The alleged crimes relate to drug distribution in the Atlanta area and acts of violence perpetrated largely against the gang’s own members.  Shockingly, the Nine Trey Gangsters in this case appear willing to kill someone or to commit violence over the smallest perceived slight,” said U.S. Attorney Byung J. “BJay” Pak.  “Thanks to the hard work of federal and local law enforcement officials, these individuals will now face prosecution for their alleged crimes.”

“The federal grand jury indictment and the resulting arrests sweeps made by the FBI and its many law enforcement partners stem from an intensive and exhausting FBI led Safe Streets Gang Task Force effort to remove these violent gang members, collectively known as Nine Trey Gangsters, from our streets,” Said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.  “The FBI continues to provide significant investigative resources directed toward the dismantling of these types of organized and violent criminal enterprises that do so much harm to our communities and the joint law enforcement operation clearly illustrates this.”

According to U.S. Attorney Pak, the charges, and other information presented in court: Beginning by at least 2013, the defendants named in the RICO conspiracy charge committed murder, attempted murder, conspired to commit murder, robbery, extortion, firearm crimes, drug trafficking, obstruction of justice and other crimes in furtherance of the Nine Trey Gangsters. 

The indictment alleges that Nine Trey Gangster members committed one murder, attempted to commit two other murders, and conspired to commit multiple additional murders.   In addition, the Nine Trey Gangsters allegedly trafficked in illegal narcotics including methamphetamine, illegal prescription drugs, and marijuana.   

The RICO conspiracy charge names the following alleged Nine Trey Gangster members as defendants:

• • Gordon Evans, a/k/a “QB,” 36, of Atlanta, GA;
     
  • Patrick Caple, a/k/a “Zoe,” 52, of Atlanta, GA;
      
  • Gary Sartor, a/k/a “G-Stacks,” 33, of Atlanta, GA;
     
  • Tyrone Clark, a/k/a “Tight-Eye,” 36, of Marietta, GA;
     
  • Joseph Riley, III, a/k/a “Joe Blow,” 33, of Atlanta, GA;
    .
  • Khajavious Mitchell, a/k/a “KJ,” 23, of Atlanta, GA;
     
  • Tashied Reed, a/k/a “Row,” 24, of Atlanta, GA;         
     
  • Michael Jackson, a/k/a “MJ,” 23, of Clayton County, GA;
     
  • Brandon Asberry, a/k/a “B5,” 28, of Atlanta, GA;
     
  • Jimmy Rosser, a/k/a “Lil Jimmy,” 25, of Atlanta, GA;
     
  • Kierra Maheia, a/k/a “Erra,” 26, of Atlanta, GA;
      
  • Cetera-Bowles Griffin, a/k/a “Bella,” 28, of Atlanta, GA;
     
  • Alfonzo Nalls, a/k/a “Offset,” 29, of Atlanta, GA; and
     
  • Raekwon Williams, a/k/a “B-Ray,” 20, of Atlanta, GA.

In addition to the RICO conspiracy the Indictment alleges multiple counts of attempted murder and conspiracy to commit murder in aid of racketeering against the following alleged Nine Trey Gangster members: Evans, Caple, Sartor, Clark, Riley, Mitchell, Tashied Reed, Jackson Asberry, Rosser, Bowles-Griffin, Nalls, Williams, Westly Shivers, a/k/a “Owon,” 27, of Atlanta, GA, and Wajzim Reed a/k/a “Wazi,” 23, of Atlanta, GA.
 
The indictment also alleges a drug trafficking conspiracy that includes trafficking in methamphetamine, marijuana, prescription medications and heroin, against the following alleged Nine Trey Gangster members: Evans; Caple; Sartor; Clark; Riley, Tashied Reid; Jackson; Asberry; Rosser; Bowles-Griffin; Williams; Marcus Russell, a/k/a “Double M,” 26, of Jessup, GA; Calmetrius Dawkins, 22, of Atlanta, GA; J’mon Hawkins, 21, of Atlanta, GA; and Earl Smiley, 27, of Greeneville, SC, and the following alleged gang associates: Linnie Andrews, 34, of Atlanta, GA; Adrian Ansley, 27, of Bethlehem, GA; Fred Arceneaux, 58, of Bonaire, GA; Erick Balcazar, 34, of Marietta, GA; Sheena Brown, 32, of Marietta, GA; Tremaine Garrison, a/k/a “Paperwork,” 35, of Marietta, GA; Cedrick Hill, a/k/a “Ced,” 25, of Marietta, GA; Monique Preston, 30, of Marietta, GA; Demario Ridley, a/k/a “Lil Yo,” 23, of Atlanta, GA; and Travis Todd a/k/a “T-Raw,” 25, of Atlanta, GA.
 
 Maheia and Mitchell are charged with maintaining a drug premises that the gang used as a base to conduct their illegal activities.  Mitchell and Williams are also charged with possessing firearms during their drug trafficking activity.
 
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 Atlanta's Safe Streets Gang Task Force, composed of members of the FBI, Atlanta Police Department (PD), Alpharetta PD, Clayton County PD, Cobb County PD, DeKalb PD, GA Dept. of Community Supervision, GA Dept. of Corrections, Gwinnett County PD, Marietta PD and United States Postal Inspection Services.  Investigative assistance was also proved by the GA State Patrol, Covington PD, Clayton County District Attorney’s Office and Gwinnett County District Attorney’s Office.
 
For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA – Dr. Allan Spagnardi and Dr. Stacy Spagnardi have been arraigned on conspiracy and fraud charges for using their chiropractic clinic to submit false claims to private insurance providers. 

 

“These two chiropractors are alleged to have reported fake patient visits in order to enrich themselves through fraudulent insurance claims,” said U.S. Attorney Byung J. “BJay” Pak. “Fraudulent healthcare billing threatens the integrity of our healthcare system and is ultimately paid for by the taxpayers.”  

 

“Healthcare providers need to think twice before trying to illegally maximize their profits at the expense of honest citizens,” said David J. LeValley, Special Agent in Charge of the Atlanta FBI. “Bringing this case to federal court is an example of our determination to protect those citizens and root out waste, fraud and abuse of our healthcare system.”

 

“Healthcare fraud has become a significant problem in the world today” said James Dorsey, Acting Special Agent in Charge for IRS Criminal Investigation. “The Spagnardis’ greed and want of a lavish lifestyle led them to commit healthcare fraud and we will continue to support investigative efforts to deter such actions.”

 

  “I’m thankful for the action by the grand jury and for the work on this case by the U.S. Attorney’s office,” Georgia Insurance Commissioner Ralph Hudgens said. “Alleged actions by the Spagnardis hurt not only Georgia citizens, but citizens across the United States in the form of higher insurance premiums.”

 

According to U.S. Attorney Pak, the charges, and other information presented in court: Dr. Allan Spagnardi and Dr. Stacy Spagnardi operated a chiropractic clinic located in Marietta, Georgia.  Over a period of at least three years, the Spagnardis allegedly submitted numerous fraudulent claims to private insurance providers for procedures that never took place. 

 

The indictment alleges that after the Spagnardis obtained their patients’ personal identifying information, they continued to bill private insurance providers for services that were never actually rendered.  On some occasions in which the Spagnardis claimed their clinic was treating patients, those patients were not even in the United States when those treatments were supposedly taking place.  In one instance, the Spagnardis allegedly claimed that their clinic had 296 patient visits during a week that they were actually on a Royal Caribbean cruise vacation. 

 

The Spagnardis are alleged to have claimed millions of dollars from private insurance providers.  The indictment alleges that Stacy Spagnardi spent much of the fraud proceeds at casinos.  Stacy Spagnardi is also alleged to have frequently made cash withdrawals under $10,000, with the purpose of evading banking reporting requirements.  For his part, Allan Spagnardi allegedly used a portion of the fraud proceeds to purchase a BMW motorcycle and a 2015 BMW M4.

 

Allan Spagnardi, 38, and Stacy Spagnardi, 50, both of Atlanta, Georgia, were arraigned today before United States Magistrate Judge Alan J. Baverman.

 

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

 

This case is being investigated by the Internal Revenue Service Criminal Investigation, Federal Bureau of Investigation, the Georgia Office of Commissioner of Insurance, and the Atlanta Police Department.

 

Assistant United States Attorney Thomas J. Krepp 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 - Elvin R.  Mitchell, Jr. and Charles P. Richards, Jr. have been sentenced to federal prison for conspiring to pay over $1 million in bribe payments in exchange for receiving lucrative contracts with the City of Atlanta.

 

“The citizens of Atlanta rightfully expect that government contracts will go to the most qualified bidder and trust that the contracting process will be transparent and fair,” said U. S. Attorney Byung J. “BJay” Pak.  “When contractors like Mitchell and Richards pay bribes to get public work, the public’s confidence in the process is undermined and the price of that corruption is borne by the taxpayers.”

 

“Today’s sentencing hearings in federal court are a direct result of a thorough public corruption investigation consisting of many long hours of work by both federal investigators and their prosecutors,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.  “While it is important that both E.R Mitchell and C.P. Richards, Jr. are held accountable for their criminal conduct, the FBI feels that it is also important for others, either public officials or those attempting to illegally influence them, to take note of the harsh consequences of such actions.”

 

“IRS Criminal Investigation is committed to investigating individuals who think that they can get a competitive advantage by cheating the system by paying bribes to get government contracts,” said James Dorsey, Acting Special Agent in Charge, Atlanta Field Office. “Today’s sentencings should act as a deterrence to those who think that they can continue to pay bribes in order to get work.”

 

According to United States Attorney Pak, the charges, and other information presented in court: Elvin R. Mitchell, Jr. serves as the owner and operator of E.R. Mitchell Company, Cascade Building System, LLC., E.R. Mitchell Group, Inc. and EC & WT Construction Company, Inc., d/b/a E.R. Mitchell Construction Co.  Richards serves as the owner and/or principal of the construction companies C.P. Richards Construction Co., Inc., and C.P. Richards & Associates, Inc.

 

In an effort to obtain construction-related contracts with the City of Atlanta, Georgia, Mitchell and Richards conspired to pay and paid an individual to obtain government contracts. From approximately 2010 to August 2015, Mitchell paid over $1,000,000 and Richards paid over $185,000 to an individual in exchange for City of Atlanta contracts, believing that some of the money would be paid to city officials who exercised influence over the contracting process.

 

Mitchell also laundered the money received from the City of Atlanta by attempting to conceal the source of the money and by attempting to evade federal currency transaction reporting requirements by withdrawing cash in amounts under $10,000.

 

Mitchell, 63, of Atlanta, has been sentenced to 5 years in prison, 3 years of supervised release, and was ordered to pay $1,120,535 in restitution. On January 25, 2017, Mitchell pleaded guilty to conspiratorial bribery and money laundering.     

 

Richards, 65, of Tucker, Ga., has been sentenced to 2 years and 3 months in prison, 3 years of supervised release, and was ordered to pay $193,000 in restitution. On February 16, 2017, Richards pleaded guilty to conspiratorial bribery

 

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

 

First Assistant United States Attorney Kurt R. Erskine and Assistant United States Attorney Jeffrey W. Davis prosecuted the case.

 

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

ATLANTA – MBA Wellness Centers, LLC, a methadone clinic located in Stockbridge, Georgia, has agreed to pay a civil settlement of $100,000 to resolve allegations that it violated the recordkeeping requirements of the Controlled Substances Act.  MBA Wellness Centers, LLC, also has agreed to additional oversight from the DEA.

 

“Dispensing controlled substances without providing a valid prescription risks patient health and safety, and creates a risk that those substances will not be used for legitimate medical purposes,” said U.S. Attorney John Horn.  “At a time when our district and the nation are facing a growing problem with the illegal diversion of controlled substances, our office is committed to enforcing the requirements of the Controlled Substances Act.”

 

Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division commented,   “MBA Wellness Centers, LLC spun a web of deception when it failed to maintain accurate recordkeeping of its inventory. Such careless behavior allows for substances to be diverted and sold on the black market with no true measure of accountability. This civil penalty is a proactive step that DEA Diversion and its federal, state and local partners can take to discourage other negligent Narcotic Treatment Programs from engaging in such behavior.”  

 

The government alleges that MBA Wellness Centers, LLC, failed to keep accurate records of controlled substances and dispensed controlled substances to patients without a valid prescription from a physician.  The claims settled are allegations only, and there has been no determination of liability.

 

Congress enacted the Controlled Substances Act, 21 U.S.C. §§ 801-904, to deter the illegal importation, manufacture, distribution, possession, and improper use of controlled substances, including prescription medications.  Under the Controlled Substances Act, individuals and entities registered with the DEA are required to maintain complete and accurate records of all controlled substances and security systems so that no controlled substances are lost, stolen, or inappropriately dispensed.  Violations of the recordkeeping requirements subject DEA registrants to civil monetary penalties of up to $14,502 for each violation.  Dispensing a controlled substance without a valid prescription from a practitioner subjects DEA registrants to civil monetary penalties of up to $62,500 for each violation.

 

This case was investigated by Diversion Investigators from the Drug Enforcement Administration.

 

The civil settlement was reached by Assistant U.S. Attorneys David O’Neal and Lena Amanti.

 

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

 

ATLANTA – Attorney General Jeff Sessions announced several Department of Justice actions to reduce the rising tide of violent crime in America. Foremost of those actions is the reinvigoration of “Project Safe Neighborhoods,” a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.

 

In announcing this recommitment to Project Safe Neighborhoods, the Attorney General issued a memo directing United States Attorneys to implement an enhanced violent crime reduction program that incorporates the lessons learned since Project Safe Neighborhoods launched in 2001.

 

“According to the FBI, the violent crime rate has risen by nearly seven percent over the past two years, and the homicide rate has risen by more than 20 percent. We cannot be complacent or hope that this is just an anomaly: we have a duty to take action,” said United States Attorney General Jeff Sessions.

 

“Fortunately, we have a President who understands that and has directed his administration to reduce crime. The Department of Justice today announces the foundation of our plan to reduce crime: prioritizing Project Safe Neighborhoods, a program that has been proven to work.”

 

“Let me be clear – Project Safe Neighborhoods is not just one policy idea among many. This is the centerpiece of our crime reduction strategy.”

 

“Taking what we have learned since the program began in 2001, we have updated it and enhanced it, emphasizing the role of our U.S. Attorneys, the promise of new technologies, and above all, partnership with local communities. With these changes, I believe that this program will be more effective than ever and help us fulfill our mission to make America safer,” Sessions said.

 

“The Northern District of Georgia has actively participated in Project Safe Neighborhoods since its inception,” said U.S. Attorney John Horn.  “PSN produced a marked reduction in violent crime in communities in metro Atlanta, where it has been implemented.  Just last year, the PSN program awarded a $499,899 grant to the Brookhaven Police Department, Chamblee Police Department, and the DeKalb County Police Department to reduce gang violence in those jurisdictions.  The strategy is data-driven and our research partner, Applied Research Services, has a long history of involvement with this program.  Finally, the grant includes funds for Rehoboth Baptist Church to provide services to youth to try to prevent them from becoming involved with gangs and crime.”

 

“The PSN strategy has proven to be effective in reducing gun crime and gang violence.,” said Chief Gary Yandura, Brookhaven Police Department.  “The Brookhaven Police Department has used the PSN grant funds received last year to strengthen 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 that will ultimately reduce gang violence in our communities.”

 

The Attorney General also announced the following Department of Justice initiatives to help reduce violent crime:

 

• Additional Assistant U.S. Attorney positions to focus on violent crime – The Department is allocating 40 prosecutors to approximately 20 United States Attorney’s Offices to focus on violent crime reduction.

 

• More Cops on the Streets (COPS Hiring Grants) – As part of our continuing commitment to crime prevention efforts, increased community policing, and the preservation of vital law enforcement jobs, the Department will be awarding approximately $98 million in FY 2017 COPS Hiring Grants to state, local, and tribal law enforcement agencies.

 

• Organized Crime and Drug Enforcement Task Force’s (OCDETF) National Gang Strategic Initiative –The National Gang Strategic Initiative promotes  creative enforcement strategies and best practices that will assist in developing investigations of violent criminal groups and gangs into enterprise-level OCDETF prosecutions.  Under this initiative, OCDETF provides “seed money” to locally-focused gang investigations, giving state, local, and tribal investigators and prosecutors the resources and tools needed to identify connections between lower-level gangs and national-level drug trafficking organizations.

 

• Critical Training and Technical Assistance to State and Local Partners –The Department has a vast array of training and technical assistance resources available to state, local and tribal law enforcement, victims groups, and others.  To ensure that agencies in need of assistance are able to find the training and materials they need, OJP will make available a Violence Reduction Response Center to serve as a “hot line” to connect people to these resources.

 

• Crime Gun Intelligence Centers (CGIC) – The Department has provided grant funding to support a comprehensive approach to identifying the most violent offenders in a jurisdiction, using new technologies such as gunshot detection systems combined with gun crime intelligence from NIBIN, eTrace, and investigative efforts.  These FY 2017 grants were awarded to Phoenix, AZ, and Kansas City, MO. 

 

• Expand ATF’s NIBIN Urgent Trace Program – The Department will expand ATF’s NIBIN Urgent Trace Program nationwide by the end of the year.  Through this program, any firearm submitted for tracing that is associated with a NIBIN “hit” (which means it can be linked to a shooting incident) will be designated an “urgent” trace and the requestor will get information back about the firearm’s first retail purchaser within 24 hours, instead of 5 to 6 business days.

 

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

ATLANTA – Attorney General Jeff Sessions announced several Department of Justice actions to reduce the rising tide of violent crime in America. Foremost of those actions is the reinvigoration of “Project Safe Neighborhoods,” a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.

 

In announcing this recommitment to Project Safe Neighborhoods, the Attorney General issued a memo directing United States Attorneys to implement an enhanced violent crime reduction program that incorporates the lessons learned since Project Safe Neighborhoods launched in 2001.

 

“According to the FBI, the violent crime rate has risen by nearly seven percent over the past two years, and the homicide rate has risen by more than 20 percent. We cannot be complacent or hope that this is just an anomaly: we have a duty to take action,” said United States Attorney General Jeff Sessions.

 

“Fortunately, we have a President who understands that and has directed his administration to reduce crime. The Department of Justice today announces the foundation of our plan to reduce crime: prioritizing Project Safe Neighborhoods, a program that has been proven to work.”

 

“Let me be clear – Project Safe Neighborhoods is not just one policy idea among many. This is the centerpiece of our crime reduction strategy.”

 

“Taking what we have learned since the program began in 2001, we have updated it and enhanced it, emphasizing the role of our U.S. Attorneys, the promise of new technologies, and above all, partnership with local communities. With these changes, I believe that this program will be more effective than ever and help us fulfill our mission to make America safer,” Sessions said.

 

“The Northern District of Georgia has actively participated in Project Safe Neighborhoods since its inception,” said U.S. Attorney John Horn.  “PSN produced a marked reduction in violent crime in communities in metro Atlanta, where it has been implemented.  Just last year, the PSN program awarded a $499,899 grant to the Brookhaven Police Department, Chamblee Police Department, and the DeKalb County Police Department to reduce gang violence in those jurisdictions.  The strategy is data-driven and our research partner, Applied Research Services, has a long history of involvement with this program.  Finally, the grant includes funds for Rehoboth Baptist Church to provide services to youth to try to prevent them from becoming involved with gangs and crime.”

 

“The PSN strategy has proven to be effective in reducing gun crime and gang violence.,” said Chief Gary Yandura, Brookhaven Police Department.  “The Brookhaven Police Department has used the PSN grant funds received last year to strengthen 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 that will ultimately reduce gang violence in our communities.”

 

The Attorney General also announced the following Department of Justice initiatives to help reduce violent crime:

 

• Additional Assistant U.S. Attorney positions to focus on violent crime – The Department is allocating 40 prosecutors to approximately 20 United States Attorney’s Offices to focus on violent crime reduction.

 

• More Cops on the Streets (COPS Hiring Grants) – As part of our continuing commitment to crime prevention efforts, increased community policing, and the preservation of vital law enforcement jobs, the Department will be awarding approximately $98 million in FY 2017 COPS Hiring Grants to state, local, and tribal law enforcement agencies.

 

• Organized Crime and Drug Enforcement Task Force’s (OCDETF) National Gang Strategic Initiative –The National Gang Strategic Initiative promotes  creative enforcement strategies and best practices that will assist in developing investigations of violent criminal groups and gangs into enterprise-level OCDETF prosecutions.  Under this initiative, OCDETF provides “seed money” to locally-focused gang investigations, giving state, local, and tribal investigators and prosecutors the resources and tools needed to identify connections between lower-level gangs and national-level drug trafficking organizations.

 

• Critical Training and Technical Assistance to State and Local Partners –The Department has a vast array of training and technical assistance resources available to state, local and tribal law enforcement, victims groups, and others.  To ensure that agencies in need of assistance are able to find the training and materials they need, OJP will make available a Violence Reduction Response Center to serve as a “hot line” to connect people to these resources.

 

• Crime Gun Intelligence Centers (CGIC) – The Department has provided grant funding to support a comprehensive approach to identifying the most violent offenders in a jurisdiction, using new technologies such as gunshot detection systems combined with gun crime intelligence from NIBIN, eTrace, and investigative efforts.  These FY 2017 grants were awarded to Phoenix, AZ, and Kansas City, MO. 

 

• Expand ATF’s NIBIN Urgent Trace Program – The Department will expand ATF’s NIBIN Urgent Trace Program nationwide by the end of the year.  Through this program, any firearm submitted for tracing that is associated with a NIBIN “hit” (which means it can be linked to a shooting incident) will be designated an “urgent” trace and the requestor will get information back about the firearm’s first retail purchaser within 24 hours, instead of 5 to 6 business days.

 

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 – Treveyon Herring, one of five defendants charged with stealing credit cards from the baggage loading areas of Hartsfield-Jackson International Airport and a private mail sorting facility, has pleaded guilty to wire fraud conspiracy. 

 

“Americans depend on the United States mail system to carry some of their most vital and sensitive correspondence, like the new credit cards in this case,” said U. S. Attorney John Horn.  “By exploiting the airport’s baggage loading processes, these defendants were able to plunder mail bags and steal new credit cards on their way to customers across the country.”   

 

“Postal Inspectors have a long and proud history of protecting the U.S. mail from criminal activity,” said David M. McGinnis, Inspector in Charge, Charlotte Division.  “These defendants violated the trust bestowed upon them to handle mail and the law for their own personal gain.  The U.S. Postal Inspection Service takes allegations of mail theft seriously and investigates these matters to ensure the integrity of the U.S. Postal Service.”

 

“Herring and his conspirators were creative in their scheme to steal victims’ credit cards and defraud them,” said Kenneth Cronin, Special Agent in Charge of the United States Secret Service, Atlanta Field Office. “The United States Secret Service will continue to collaborate with our law enforcement partners to arrest criminals who use their trustworthy positions to violate unsuspecting victims.”

 

According to U.S. Attorney Horn, the charges and other information presented in court: From December of 2015 until April of 2017, the defendants stole credit cards from the baggage loading areas of Hartsfield-Jackson International Airport and a private mail sorting facility.  Cornelius Henderson, through his employment, had access to the airport’s 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 assisted in the scheme by obtaining cash from the stolen credit cards. 

 

Turner used stolen credit cards at ATMs to obtain cash advances, while 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 was involved in almost every aspect of the scheme alleged in the indictment, interacting with co-conspirators who stole credit cards and those who were involved in extracting value from the stolen credit cards.

 

The stolen credit cards were shipped via the U.S. Postal Service to the rightful accountholders, who were located throughout the United States.  In total, the scheme caused over $1.7M in fraud-related losses.

 

All five defendants were charged in a criminal indictment on May 23, 2017.  Herring is the last of the five defendants to enter a guilty plea in the case.  The other defendants are as follows:

 

• Quentin Pickett, 25, of Jonesboro, Georgia, pleaded guilty to wire fraud conspiracy and aggravated identity theft on September 25, 2017, and agreed to the entry of a restitution order in the amount of $1,759,301.14.  Pickett is scheduled to be sentenced on January 10, 2018.

 

• Cornelius Henderson, 23, of Riverdale, Georgia, pleaded guilty to wire fraud conspiracy and aggravated identity theft on September 25, 2017, and agreed to the entry of a restitution order in the amount of $429,142.26.  Henderson is scheduled to be sentenced on January 9, 2018.

 

• LaSuhn Turner, 25, of Stockbridge, Georgia, pleaded guilty to wire fraud conspiracy on August 30, 2017, and agreed to the entry of a restitution order in the amount of $70,483.05.  Turner is scheduled to be sentenced on December 5, 2017.

 

• Brandon Foster, 24, of Stockbridge, Georgia, pleaded guilty to wire fraud conspiracy on August 24, 2017, and agreed to the entry of a restitution order in the amount of $14,831.00.  Foster is scheduled to be sentenced on November 17, 2017.

 

Treveyon Herring, 22, of Forest Park, Georgia, is scheduled to be sentenced on January 10, 2018.  As part of a plea agreement, Herring agreed to the entry of a restitution order in the amount of $1,341,778.96.  All five defendants in this case are scheduled to be sentenced by U.S. District Judge Eleanor L. Ross.

 

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

 

Assistant U.S. Attorney Samir Kaushal 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 - Lionel Lewis Alls, Jr., has been sentenced to 20 years for distributing child pornography.  In addition to sharing child pornography, Alls enticed minors as young as 8-years-old to send nude images and videos of themselves to him.

 

“Alls demonstrated in horrific ways how the Internet can be used by criminals to victimize our children,” said U. S. Attorney John Horn.  “His manipulation of young girls to send nude photos and videos of themselves is one more example of just how far these criminals will go to satisfy their disgusting desires.  Parents must be extremely vigilant with children when they venture online, especially when it involves their use of social media.”

 

“The internet is a very important and useful resource, but unfortunately can also be used for illegal activity in the darkest corners of our society, as criminals seek to prey on the most vulnerable of our population,” said David J. LeValley, Special Agent in Charge of the FBI’s Atlanta Field Office. “Alls actions are the worst of depravity and no sentence can lessen the harm he has caused to these young children. But at least he will no longer be able to pursue his egregious acts.”

 

According to U.S. Attorney Horn, the charges and other information presented in court: Alls used the Internet to access, download, and distribute child pornography. In one instance, he was aware another man was molesting a toddler in his care and encouraged that individual to share sexually explicit images of the child over the Internet.  That defendant subsequently pled guilty to production of child pornography and was sentenced to 35 years imprisonment in the Western District of Virginia.

 

Alls continued his exploitation by seeking out girls as young as eight years old on websites such as YouTube and engaged in sexually explicit chats with the children.  In multiple instances, he enticed young girls to send him sexually explicit images and videos of themselves over the Internet.  Alls also shared images of his own genitals with the children. 

 

Lionel Lewis Alls, Jr., 36, of College Park, Georgia, was sentenced to 20 years in prison to be followed by lifetime supervised release.  Alls was convicted on these charges on June 28, 2017, after he pleaded guilty.

 

This case was investigated by the Federal Bureau of Investigation.

 

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

 

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

 

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

ATLANTA – Erica L. Morris pleaded guilty to making more than $35,000 in personal purchases on a Covington Housing Authority credit card that had been issued to her for work-related purchases.

 

“By stealing more than $35,000, Morris betrayed the trust given to her by the Covington Housing Authority,” said U.S. Attorney John A. Horn.  “Morris stole money that was supposed to be used to serve the low-income families of Covington and used the money to support her own lifestyle.”

 

Nadine E. Gurley, Special Agent in Charge for the U. S. Department of Housing and Urban Development, Office of Inspector General said, “HUD's Office of Inspector General is dedicated to protecting HUD from individuals seeking to defraud programs meant for America’s most vulnerable population. The guilty plea announced today is a reminder to citizens that we will  aggressively investigate industry professionals who attempt to steal from our programs.   The partnership between the U.S. Attorney’s Office and HUD’s Office of Inspector General, has helped demonstrate to taxpayers that those who seek to unlawfully profit by defrauding HUD programs will be vigorously prosecuted.”

 

According to U.S. Attorney Horn, the charges, and other information presented in court:  The Covington Housing Authority (“CHA”) was established in 1965 and, according to its website, seeks to “provide decent, safe, and sanitary housing, in good repair, to low-income families at an affordable rent.”

 

From January 2006 to September 30, 2016, Morris worked for the CHA, ultimately serving as its Administrative Manager.  In that position, Morris managed CHA’s accounting, bookkeeping, human resources, payroll accounts, payable and receivable accounts, service contracts, and maintained the office’s business records. As the Administrative Manager, the CHA issued Morris a merchant credit card to make work-related purchases.

 

From approximately June 2015 to May 2016, Morris made more than 60 unauthorized personal purchases on her merchant credit card, including buying thousands of dollars’ worth of Visa gift cards. In addition, Morris used her access to the CHA’s telephone account to purchase an iPhone 6 cellular telephone for a family member. Subsequently, Morris used the Visa gift cards to pay various personal living expenses, including paying her husband’s child support costs. In total, Morris unlawfully charged more than $35,000 to her CHA merchant credit card.

 

On September 13, 2017, Morris, 34, of Covington, Georgia, was charged via a criminal information with one count of Federal Program Theft.

 

The Department of Housing and Urban Development - Office of the Inspector General is investigating this case.

 

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

 

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

ATLANTA – AnMed Health, a South Carolina hospital based in Anderson, South Carolina, has agreed to pay over $7 million to resolve allegations that it violated the False Claims Act by submitting false Medicare claims.  The settlement announced today resolves allegations that AnMed Health knowingly disregarded the statutory conditions for submitting claims to the Medicare program for a variety of services, including radiation oncology services, emergency department services, and clinic services.

 

Specifically, the United States alleged that AnMed Health billed for radiation oncology services for Medicare patients when a qualified practitioner was not immediately available to provide assistance and direction throughout the radiation procedure, as required by Medicare regulations.  The settlement also resolves allegations that AnMed Health systematically billed a minor care clinic as if it was an Emergency Department and billed Emergency Department services as if they were provided by a physician when, in fact, the services were rendered by mid-level providers. Each of these billing practices resulted in higher reimbursements to AnMed Health.

 

“This is another example of how the False Claims Act whistleblower provisions help protect the public’s interest,” said U. S. Attorney John Horn.  “It also reflects our ongoing commitment to safeguard our federal health care programs and the vital care that they provide.”

 

“Our goal in pursuing Medicare fraud is not only to protect taxpayers, but also to ensure that Medicare beneficiaries receive the quality care they deserve,” said Barbara Bowens, Civil Chief for the U.S. Attorney’s Office for the District of South Carolina.  

 

“Protecting people with Medicare and guarding health resources are top priorities,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services.  “Provider organizations seeking to increase profits at the expense of patients and taxpayers should expect such plans to be costly.”   

 

The allegations settled arose from a lawsuit filed in the Northern District of Georgia by a whistleblower formerly employed by AnMed Health, Linda Jainniney, under the whistleblower provisions of the False Claims Act.  Under the Act, private citizens can bring suit on behalf of the government for false claims and share in any recovery.  The lawsuit is captioned United States ex rel. Jainniney v. Anmed Health, et al., 1:12-cv-2941 (N.D. Ga.). Under the provisions for whistleblowers under the False Claims Act, Ms. Jainniney will receive $1,202,500 of the United States’ False Claims Act recovery.

 

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

 

The civil settlement was reached by Assistant U.S. Attorneys David A. O’Neal for the Northern District of Georgia and Beth Warren for the District of South Carolina.

 

The government’s resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 900-HHS-TIPS (800-447-8477).

 

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 – Vladimir Collazo-Florido, a/k/a “Cannabis,” Marlon Matthew Pittman, a/k/a “Marlo Pittman,” and Carlos Gonzalez-Catala, a/k/a “El Electrico,” each with prior federal convictions for drug trafficking, have been indicted for conspiracy to possess with the intent to distribute cocaine based on a scheme in which they used the U.S. Mail to ship kilogram quantities of cocaine from Puerto Rico to the Atlanta metropolitan area and then to ship their illicit proceeds back to Puerto Rico.

 

“These defendants have already served sentences for distributing dangerous drugs,” said U.S. Attorney John Horn.  “However, instead of learning from their mistakes, they again chose to poison our community and exploit the U.S. Postal Service for their criminal activities.”  

 

Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division stated, “These cocaine distributors sold poison to the community.  We exploited their weaknesses and dismantled this once-thriving criminal network.  These efforts would not have been successful without the full cooperation between our federal, state, and local law enforcement counterparts.”

 

“Through our joint enforcement efforts, we’ve dismantled a criminal organization that posed a direct threat to the safety and stability of various communities,” said David M. McGinnis, U.S. Postal Inspector in Charge of the Charlotte Division.  “Postal Inspectors will continue to work with our law enforcement partners to investigate and hold those accountable who maliciously utilize the U.S. mail system.”

 

According to U.S. Attorney Horn, the charges, and other information presented in court:  The charges arose from an investigation into money laundering activities in Atlanta as far back as 2012, and eventually led to a series of federally authorized wiretaps on cellular phones used by members of the drug trafficking operation (“DTO”) in Atlanta and Puerto Rico.

 

The indictment and other information presented in court allege that Collazo-Florido would obtain cocaine from sources in the Dominican Republic and Colombia. Collazo-Florido would then send some of that cocaine through the U.S. Mail to his associates in the contiguous United States, including Pittman in Atlanta, usually in parcels containing up to 1.5 kilograms at a time.  In order to avoid detection if the parcels were inspected, the cocaine would be hidden inside seemingly innocent items such as children’s toys, cans of powdered milk, or cans of beans.

 

The indictment and other information presented in court further allege that Gonzalez-Catala was responsible for packaging and mailing the drugs.  Pittman would sell the cocaine to customers in Atlanta, South Carolina, and Maryland.  Pittman would then transfer the proceeds of the drug sales back to Puerto Rico by carrying large quantities of cash – including one instance of transporting approximately $90,000 cash in a duffle bag – and other times by purchasing and mailing U.S. Postal Service money orders.

 

The following individuals were indicted by a federal grand jury on August 15, 2017:

 

• Vladimir Collazo-Florido, a/k/a “Cannabis,” a/k/a “El Fumador,” a/k/a “Cualquiera,” a/k/a “Humo,” a/k/a “Johnny Bravo,” a/k/a “Aloha,” a/k/a “Smoking Chronic,” 42, of Carolina, Puerto Rico.
   
• Marlon Matthew Pittman, a/k/a “Marlo Pittman,” a/k/a “007,” a/k/a “7up,” a/k/a “Cowboys,” a/k/a “7,” 43, of Mableton, Georgia.
   

Carlos Gonzalez-Catala, a/k/a “El Electrico,” a/k/a “Chili,” a/k/a “Chiri,” 41, of Guaynabo, Puerto Rico.
 
All three individuals have been charged with conspiracy to possess with the intent to distribute at least 500 grams of cocaine.  Pittman has also been charged with money laundering. Collazo-Florido and Gonzalez-Catala were arrested in Puerto Rico.  They made their first appearance there on August 24, 2017, and were then transferred to Atlanta where they have been ordered detained by U.S. Magistrate Judge Justin S. Anand.  Pittman was arraigned in Atlanta on August 28, 2017, before U.S. Magistrate Judge Linda T. Walker.
 
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
 
This case is being investigated by the Drug Enforcement Administration and U.S. Postal Inspection Service.
 
Assistant U.S. Attorney Garrett L. Bradford 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 - Adam L. Smith, the former Chief Procurement Officer for the City of Atlanta, has pleaded guilty to conspiring to accept more than $30,000 in bribe payments from a vendor who obtained millions of dollars in city contracts.

 

“Great trust was placed in Smith as Chief Procurement Officer for the City of Atlanta, and he abused his position to serve his own financial interests,” said U.S. Attorney John A. Horn.  “Public corruption offenses, like Smith’s, can erode the confidence that the people have in government.”

 

“The guilty plea in federal court of former City of Atlanta Procurement Officer Adams will ensure that he is held accountable for his greed based criminal conduct as he now awaits sentencing. It is hoped that this case serves as notice to others that similar such conduct among public officials will not be condoned and that there are severe consequences should that notice go unheeded,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.

 

“Public service is a public trust, requiring employees to obey laws and ethical principles above private gain. Smith abused his public trust to enrich himself at a cost to the taxpayers,” said James E. Dorsey, Acting Special Agent in Charge, IRS Criminal Investigation. “We will continue to work with the FBI and U.S. Attorney’s Office in making these public corruption investigations a priority.”

 

According to U.S. Attorney Horn, 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.

 

The information refers to a vendor who was an executive with a construction firm in Atlanta, Georgia, but does not identify them by name. During Smith’s tenure as the Chief Procurement Officer, Atlanta awarded contracts worth millions of dollars to Vendor’s firm and joint venture projects of which Vendor was a partner. 

 

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

 

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

 

Given his position, Smith was required to sign annually a financial disclosure statement certifying that he had not received more than $5,000 in annual income from any corporation, partnership, proprietorship, or 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 interest 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:

 

1. Smith met with Vendor on a regular basis;
2. Smith provided Vendor with information and counsel regarding Atlanta’s procurement processes (among other information);
3. When 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;
4. Smith never disclosed his ongoing financial relationship with Vendor and/or Vendor’s firm on his Financial Disclosure Statements to Atlanta; and
5. 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.

 

In total, from at least 2015 to January 2017, Vendor paid Smith more than $30,000 in cash.

 

Adam L. Smith, 53, Atlanta, Georgia, pleaded guilty to conspiratorial bribery. Sentencing is scheduled for January 16, 2018, before U.S. District Judge Steve C. Jones.

 

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

 

Assistant U.S. Attorneys Jeffrey W.  Davis, Kurt R. Erskine, and Jill E. Steinberg 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 - Joseph J. Erves, MARTA’s former Senior Director of Operations, has pleaded guilty in federal court to orchestrating a false invoice scheme that resulted in MARTA paying more than $500,000 for maintenance work that was never performed and for funneling most of the money back into his personal bank accounts.

 

“Erves was entrusted to use taxpayer dollars to operate MARTA effectively and responsibly,” said U.S. Attorney John A. Horn.  “His theft of $500,000 in MARTA funds was a blatant display of his desire for self-enrichment at the expense of the public interest.”

 

According to U.S. Attorney Horn, 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 of MARTA’s buses and rail cars and had the authority to approve payments up to $10,000 to vendors for work performed on behalf of MARTA.

 

Beginning in or about 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 being paid, the three vendors funneled most of the money 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 worked was actually performed.

 

On August 24, 2017, Erves, 52, of Lithonia, Georgia, was charged via criminal information with one count of Federal Program Theft. Erves has pleaded guilty to the information.

 

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.

ATLANTA – Federal inmate Fernando A. Settles has been sentenced to an additional one year, three months in prison for escaping from the United States Penitentiary’s minimum-security camp in Atlanta, Georgia.  

 

“Escapes from prison pose significant safety risks to the public,” said U. S. Attorney John A. Horn.  “Settles escaped from Atlanta’s prison camp to celebrate his birthday.  He decided that instant gratification was more important than serving his time and being released at the end of his sentence.  Now he will have an extra year to reflect on that choice.”

 

According to U.S. Attorney Horn, 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. The FBI and the Atlanta Police Department (“APD”) have been engaged in an investigation to combat instances where USP Atlanta inmates temporarily escape from the prison camp to obtain contraband to smuggle back into the prison or to visit nearby restaurants, hotels, and residences.

 

In August 2009, Settles was sentenced to 20 years in prison after being convicted of conspiratorial and substantive drug trafficking offenses. From approximately September 2016 to May 2017, Settles was an inmate at the prison camp of USP Atlanta, with a scheduled release date of July 29, 2025.

 

On May 8, 2017, the FBI and APD conducted surveillance along the fence line of USP Atlanta. At approximately 3:20 that morning, Settles escaped from the prison camp at USP Atlanta.  Shortly thereafter, the FBI arrested Settles in a wooded area outside of USP Atlanta’s outer prison fence.  At the time of his arrest, Settled had a cellular telephone and two empty duffel bags in his possession.

 

On May 12, 2017, Fernando A. Settles, 36, of Augusta, Georgia, was charged via criminal information with escaping from federal custody. Settles was sentenced to a one year, three month term of imprisonment (to be served after he completes his current 20-year prison sentence).

 

The FBI and APD investigated this case.

 

Assistant U.S. Attorneys Jeffrey W.  Davis and Timothy 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 – Christopher Dixon, a/k/a “Yardman,” a fugitive from justice for almost six years, has been sentenced to prison for trafficking over 1,000 pounds of marijuana and approximately 25,000 pills of MDMA (ecstasy) and BZP (a drug similar to ecstasy). Dixon was involved with a drug organization that distributed over 1 million pills of MDMA and BZP.

 

“Dixon, and the drug organization that he worked with, distributed a staggering amount of drugs in this District,” said U.S. Attorney John A. Horn. “Fortunately, after years on the lam, Dixon has been brought to justice, and will serve his sentence like the other defendants in this case.”

 

Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division stated of the sentencing, “This high-level poly-drug trafficker was “collared” because of the great working relationship that DEA has with its federal, state and local counterparts and the United States Attorney’s Office. Mr. Dixon eluded justice for several years, but his days on the run came to an abrupt end when he was ultimately captured. He will now spend well-deserved time in prison for the crimes he committed and his apprehension makes our communities a safer place today.”

 

According to U.S. Attorney Horn, the charges and other information presented in court: From late-2009 to late-2010, several state, federal, and international agencies conducted an investigation of an Atlanta drug trafficking organization that used corrupt law enforcement officers to further its illegal activities. Ultimately, the investigation resulted in the arrest, indictment, and conviction of more than 15 defendants, including Dixon.

 

For his part, Dixon executed countless drug transactions and supervised several lower-level drug traffickers, while simultaneously running Club Xpose (a nightclub in DeKalb County). In total, Dixon distributed approximately 25,000 pills of MDMA and BZP and 1,000 pounds of marijuana. In particular, on June 21, 2010, based on wiretapped calls and a covert surveillance operation, law enforcement officers caught Dixon in a stolen car with approximately 4,000 pills of MDMA and BZP and loaded handgun. During the course of the conspiracy, Dixon used former-DeKalb County Police Officer Donald Bristol to obtain sensitive law enforcement information. Bristol was previously sentenced to a year and a day in prison for his conduct.

 

On December 15, 2010, law enforcement officers executed a series of coordinated arrests. As part of the take-down, agents attempted to arrest Dixon and also had him contacted via telephone. Nevertheless, Dixon failed to turn himself in and remained a fugitive from justice for almost six years. In November 2016, Dixon was arrested on obstruction and marijuana trafficking charges in Franklin County, Georgia.

 

Christopher Dixon, 44, formerly of DeKalb County, Georgia, has been sentenced to 11 years in prison to be followed by five years of supervised release. Dixon pleaded guilty to a conspiratorial drug trafficking charge on June 16, 2017.

 

This case was investigated by the Drug Enforcement Administration; Immigration Customs Enforcement (ICE); ICE - Office of Professional Responsibility; ICE - Office of Inspector General; ICE - Homeland Security Investigations; Jamaican Constabulary Force - Anti-Corruption Branch; DeKalb County Police Department; Internal Revenue Service - Criminal Investigation; Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, and Delta Airlines Corporate Security.

 

Assistant U.S. Attorneys Jeffrey W. Davis, L. Skye Davis, and Dahil Goss 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.com.

 

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 - Kyle Matthew Nixon and Eric Eugene Gamez have been sentenced to prison for drug trafficking and gun offenses.

 

“These defendants were distributing cocaine and heroin while protecting their drug business with an arsenal of firearms,” said U. S. Attorney John Horn. “Their actions disregarded the safety of our community, but swift action by law enforcement kept them from causing further harm.”

 

“The success of this investigation is a result of the collaborative efforts of ATF and our local partners,” said ATF Special Agent in Charge Wayne Dixie. “ATF will continue to dedicate federal resources in conjunction with the crucial contributions of local agencies towards the eradication illegal drug and firearm activity.”

 

According to U.S. Attorney Horn, the charges and other information presented in court: On April 6, 2016, agents executed a search warrant at the residence of Kyle Nixon. Nixon and Eric Gamez attempted to flee from the house, but were quickly apprehended by law enforcement. Inside the house, Nixon and Gamez were cutting and packaging over 400 grams of cocaine and over 300 grams of heroin, which they intended to sell. Agents also seized over $13,000 in cash and 19 firearms, including an AK-47 rifle.

 

On July 20, 2017, Kyle Matthew Nixon, 26, of Marietta, Georgia, was sentenced to eight years in prison to be followed by five years of supervised release. Nixon was convicted on these charges on April 11, 2017, after he pleaded guilty.

 

On September 14, 2017, Eric Eugene Gamez, 27, also of Marietta, Georgia, was sentenced to nine years, nine months in prison to be followed by five years of supervised release. Gamez was convicted on these charges on February 28, 2017, after he pleaded guilty.

 

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Marietta/Cobb/Smyrna Organized Crime Unit.

 

Assistant U.S. Attorney Jolee Porter 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 – Erica D. Morris has been charged with making more than $35,000 in personal purchases on a merchant credit card that the Covington Housing Authority issued her for work-related purchases.

 

“Morris abused her position with Covington Housing Authority by ringing up more than $35,000 in personal charges,” said U.S. Attorney John A. Horn. “In effect, Morris diverted money earmarked for the low-income families for which the Covington Housing Authority provides housing into her own pocket.”

 

“The actions taken today should serve as a strong notice of our continuing commitment to root out all forms of fraud, especially as it relates to federal housing resources directed to assist less fortunate American families,” said Nadine E. Gurley, Special Agent in Charge, U.S. Department of Housing and Urban Development, Office of Inspector General. “We remain steadfast in working with the U.S. Department of Justice to pursue any unscrupulous individuals that may seek to use their position in order to gain an illegal personal benefit.”

 

According to U.S. Attorney Horn, the charges, and other information presented in court: The Covington Housing Authority (“CHA”) was established in 1965 and, according to its website, seeks to “provide decent, safe, and sanitary housing, in good repair, to low-income families at an affordable rent.”

 

From January 2006 to September 30, 2016, Morris worked for the CHA, ultimately serving as its Administrative Manager. In that position, Morris managed CHA’s accounting, bookkeeping, human resources, payroll accounts, payable and receivable accounts, service contracts, and maintained the office’s business records. As the Administrative Manager, the CHA issued Morris a merchant credit card to make work-related purchases.

 

From approximately June 2015 to May 2016, Morris made more than 60 unauthorized personal purchases on her merchant credit card, including buying thousands of dollars’ worth of Visa gift cards. In addition, Morris used her access to the CHA’s telephone account to purchase an iPhone 6 cellular telephone for a family member. Subsequently, Morris used the Visa gift cards to pay various personal living expenses, including paying her husband’s child support costs. In total, Morris unlawfully charged more than $35,000 to her CHA merchant credit card.

 

Erica D. Morris, 34, of Covington, Georgia, has been charged in a criminal information with one count of Federal Program Theft. Morris is expected to plead guilty to the charge shortly after arraignment.

 

The Department of Housing and Urban Development - Office of the Inspector General is investigating this case.

 

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

 

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

ATLANTA - Artur Sargsyan has pleaded guilty to one felony count of criminal copyright infringement related to his ownership and administration of Sharebeast.com, a file-sharing website that facilitated the unauthorized distribution and reproduction of over 1 billion copies of copyrighted works.

 

“Through Sharebeast and other related sites, this defendant profited by illegally distributing copyrighted music and albums on a massive scale,” said U. S. Attorney John Horn. “The collective work of the FBI and our international law enforcement partners have shut down the Sharebeast websites and prevented further economic losses by scores of musicians and artists.”

 

“This is another example of how the FBI and its international law enforcement partners, working together, make it difficult for criminals to profit from illegal activities on the internet,” said David J. LeValley, Special Agent in Charge, FBI Atlanta. “Illegally making money off of the talent of hard working artists will not go unpunished thanks to the dedication and hard work of our FBI agents.”

 

According to U.S. Attorney Horn, 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.

 

In numerous instances, Sharebeast distributed and reproduced pre-release copyrighted works meaning that Sargsyan made the songs available before they were commercially available to paying consumers.

 

From 2012 through 2015, Sargsyan received over 100 emails notifying him that Sharebeast was hosting copyright-infringing works. Despite receiving such notices, the copyright-infringing files were still available for download.

 

In August 2015, the United States seized control of the domain names Sharebeast.com, Newjams.net, and Albumjams.com. And with the assistance of international law enforcement partners in the United Kingdom and the Netherlands, the FBI seized the computer servers used by Sargsyan to illegally distribute the copyrighted music worldwide.

 

According to the Recording Industry Association of America, 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.

 

Sentencing for Artur Sargsyan, 29, of Glendale, California has been scheduled for December 4, 2017 at 10:30 am before U.S. District Judge Timothy C. Batten.

 

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

 

Assistant U.S. Attorneys Samir Kaushal and Kamal Ghali are prosecuting the case. The prosecution and seizure of the website domain names 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 filed 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 CCIPS, United Kingdom’s National Crime Agency, and the Ministry of Security and Justice in the Netherlands, as well as the CCIPS Cyber Crime Lab.

 

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.